MANAGEMENT 104 CHAPER 6 Corporation Governance and Anti – Corruption in Global BusinessPresented By: Mae Casumpang Aizell Bernal Magiel Amor Mara Marielle BanezJerelyn BarrogoJeselyn BarrogoJasmin Khaye Aquino
Coverage of Chapter 5I. 6.5 Corporate Governance and Anti- Corruption – maeII. 6.2 Corruption Practices and Properties- AizelIII. 6.3 Taxonomy of Corruption in International Business. – MagielIV. 6.4 Corruption and Organizational Environment – KhayeV. 6.4.1 Task Environment - khayeVI. 6.4.2 Institutional Environment – khayeVII. 6.5 Corruption and Organizational Behavior- jerzVIII. 6.5.1 System Malfeasance – jerzIX. 6.52 Procedural Malfeasance –jerzX. 6.5.3 Categoral Malfeasance- jerzXI. 6.5.4 Structural malfeasance- jerzXII. 6.6 Corruption and Organizational Consequences- MaraXIII. 6.6.1 Evolutionary hazard – maraXIV. 6.6.2 Strategic impediment – manaXV. 6.6.3 Competitive disadvantage – maraXVI. 6.6.4 Organizational Defficiiency- maraXVII.
6.1 The Corporate Governance and Anti- Corruption Corruption • has drawn the enormous attention of executives, directors, legislators, politicians, and scholars around the world. • Recent obstacles of many well known companies. Anti- corruption • Crucial to corporate governance, because bribery and corruption damage the Governance of corporation . • Impede efforts to develop corporate integrity. • any illicit behavior, conducted by executives, managers, and employees can fundamentally deter the legitimate and long term interest of internal and external stake holders.
6.1 The Corporate Governance and Anti- CorruptionIn the international business context, anti- corruption becomes even moreimportantTo global corporate governance because MNCs confront significantly varyingnorms, laws, and standards pertaining to business practices in general andcorruption practices in particular. To cope increasingly stringent anti- corruption law and to enhance theeffectiveness and transparency of global corporate governance, MNCs arevoluntarily disclosing potential violations of federal anti – corruption law.
6.1 The Corporate Governance and Anti- Corruption Surely it is true that the Anti – corruption necessities efforts and commitmentsfrom various institution, especially legislators, regulators and government official.Transparency – the key in private and public domain to fight against bribery andextortion. Cooperation to strengthen public support to fight against Anti-corruption measures. Adoption of proper Corporate Governance practices is complimentary element inFostering a culture of ethics within the multinational enterprise.
6.1 The Corporate Governance and Anti- CorruptionBusiness organization has an inescapable liability from such effort andcommitments :I. Organization is a basic unit of corruption practice.II. Organization that are motivated to bribe for transaction- specific gain are partly responsible why corruption is difficult to eradicate.III. Organization is a window through which to see Nation corruption climate.IV. Knowing organizational implication of corruption is imperative.
6.1 The Corporate Governance and Anti- Corruption Anti- corruption is critical to corporate accountability. The foreign Corrupt practices Act ( FCPA) – clearly states the importance of Anti- corruption in fortifying MNCs global corporate governance and accountability.
6.2 Corruption Practices and PropertiesCorruption is a complex and multifaceted phenomenon with multiple causes andeffects, occurring as it takes on various forms and functions in differing context.Corruption define as an illegitimate exchange of resources involving the use orabuse of public or collective responsibility for private ends ( gains, benefits,profits, or privileges).In narrow sense corruption involves a bureaucratic behavior that deviates fromthe norm or violates rules specified by the given context and is motivated byprivate gains that can be accrued from the public role.Kinds of Corruption bribery, fraud, extortion, favoritism
6.2 Corruption Practices and PropertiesBribery include:1. Kickbacks2. Red envelopes3. gratuities4. Baksheesh5. grease money6. Facilitation payment7. Expediting feesFraud Includes:• Trickery• swindle• DeceitExtortion involve corrupt transactions where money or other resources are violently extracted by those who have the power to do so.
6.2 Corruption Practices and PropertiesNature of Corruption:1. Corruption is context- based.2. Corruption is norm- deviated.3. Corruption is Power- related.4. Corruption is virtually convert.5. Corruption is International.6. Corruption is ex post opportunistic.7. corruption is perceptual
6.3 Taxonomy of Corruption in International Business