Final Project of International Financial Management IMBA, National Kaohsiung University of Science and Tehcnology

1. Corruption
Nur Sabila / 薛碧兒
0521827
International Financial
Management

2. Content
• About Corruption
• Talk about the news
• Conclusion

3. Corruption
Two or more people undertake an exchange
relation by way of a successful transfer of money
or power which sides taps legality or morality to
regulate the relation.

4. CORRUPTION
MNC RULES
Get special treatment
GOVERNMENT

5. CORRUPTION
MNC
Government
PROJECT
PROJECT
Local Firm
?
?
?
X

6. Three Concepts of Corruption
• Bribery:
is a form of corruption where a reward is given to pervert the
judgment or influence the conduct of a decision maker
• Extortion:
involving demands for gifts or favors in the execution of public
duties, or by taking forcefully and unlawfully money or things of
value to which the recipient has no right
• Nepotism:
involves the appointment of relatives, friends or political associates
to an office regardless of their merits and 'the consequences on the
public weal'

7. How to reduce corruption
• Paying civil servants well, if public sector wages are too
low, employees may find themselves under pressure to
supplement their income in unofficial ways.
• Creating transparency and openness in government
spending,
• Cutting red tape
• Replacing regressive and distorting subsidies with
targeted cash transfer
• Establishing international conventions
• Deploying smart technology.

8. 0 100
Highly corruptVery Clean
Country Index Rating Country Index Rating
Denmark 90 Spain 58
Finland 89 South Korea 53
Singapura 84 Slovakia 51
UK 81 Malaysia 49
Hongkong 77 Saudi Arabia 46
US 74 South Africa 45
Japan 72 China 40
France 69 Mexico 30
Qatar 61 Rusia 29
Taiwan 61 Somalia 10
Source: https://www.transparency.org/news/feature/corruption_perceptions_index_2016
The corrupt
countries in the
world 2016

9. MEXICO
ABOUT WAL-MART
Walmart in Mexico
Wal-mart is a multinational corporation with over 11.000 stores
worldwide. Wal-Mart was started in 1950 when Sam Walton
purchased a store from Luther Harrison in Bentonville, Arkansas. In
1991, Wal-Mart expended globally by opening its first store outside
of the United States in Mexico City. By 1995, the number of
International stores increased to 276, including over 96 in Mexico.
There are now currently 2.290 Wal-Mart stores in Mexico, under
Wal-Mart’s subsidiary “Wal-Mart de Mexico”

10. • Wal-Mart had contributed millions of dollars in bribes for
special treatment in Mexico.
• The paper claimed the retail store’s Mexican subsidiary
“orchestrated a campaign of bribery to win market
dominance.
• Since then, Wal-Mart has attempted to fend off a shareholder
lawsuit, and spent hundreds of millions of dollars in
compliance costs and legal fees.
NEWS
MEXICO 2012The Wal-Mart Bribery Scandal
The New York Times

11. Walmart has spent
millions in compliance
costs and legal fees,
including on outside
counsel from “a
number of law firms”
and other advisors,
and those costs
continue to rise
NEWS
MEXICO 2012The Wal-Mart Bribery Scandal
The New York Times
Soure: https://create.org/news/the-wal-mart-bribery-scandal-
three-years-later/
$772

12. • Based on the news, Wal-Mart spend
their money to get special treatment,
but because the news leaked to the
media, Wal-Mart spent more money
to pay for lawyers, etc.
• Corruption can affect to the MNC
because it can increase the cost of
conducting business or reduce their
revenue.
CONCLUTION

13. Sources
• http://www.emeraldinsight.com.sci-hub.bz/doi/abs/10.1108/eb026002
• https://create.org/news/the-wal-mart-bribery-scandal-three-years-later/
• https://prezi.com/xrnrpcm1oqav/an-examination-of-wal-marts-bribery-
scanslidal-in-mexico/?webgl=0
• https://www.transparency.org/news/feature/corruption_perceptions_ind
ex_2016
• https://www.forbes.com/sites/abrambrown/2012/04/23/spooked-
investors-sink-wal-mart-nearly-5-after-bribery-revelations-at-least-4-5b-
penalty-likely/#3700f55928e3
• https://www.slideshare.net/AndiniNurulP/corruption-ppt-
15801244?next_slideshow=1

14. Thank you