Bribery and Corruption
IThere's no doubt that corruption, endemic in emerging economies around the world, throws economic development into chaos. It affects decisions made by bureaucrats, degrades the quality of those in power, and discourages foreign investment. It's also an increasingly hot business topic, with a growing number of influential business and political leaders from around the globe regularly pinpointing corruption as one of the greatest threats to global economic development
Corruption and bribery have moved to the forefront in discussions about business," says Wharton legal studies professor Philip M. Nichols. "The list of countries that have been politically or economically crippled by corruption continues to grow, and businesses with long-term interests abroad will ultimately be harmed by any plans that include bribery."
Nichols, the author of more than 10 studies and theoretical writings on the implications and mechanics of corruption, has spent the past decade studying corruption in such nations as France, Belize, Russia, Kazakhstan, and Bulgaria. Most recently, he examined perceptions of corruption in Mongolia, where he lived for a year while studying and teaching on a Fulbright Scholarship. In September, Nichols offered anti-corruption strategies to entrepreneurs at a national conference in St. Petersburg, Russia. Last month he led a weeklong seminar on corruption in Tashkent, Uzbekistan run by the Resource Network for Economic and Business Education. "A decade ago, corruption was not a proper subject for polite scholars or policymakers," Nichols and his co-authors wrote in a recent research paper. "Today, the creation of and comment on anti-corruption regimes is a growth industry."
Bribery, of course, is the most widespread form of corruption, and corporate strategies for dealing with bribe requests vary. According to Nichols, some companies opt to pay, sometimes damaging their public images and making it more difficult to refuse future requests. Others have
Corruption and bribery have moved to the forefront in discussions about business," says Wharton legal studies professor Philip M. Nichols. "The list of countries that have been politically or economically crippled by corruption continues to grow, and businesses with long-term interests abroad will ultimately be harmed by any plans that include bribery."
Nichols, the author of more than 10 studies and theoretical writings on the implications and mechanics of corruption, has spent the past decade studying corruption in such nations as France, Belize, Russia, Kazakhstan, and Bulgaria. Most recently, he examined perceptions of corruption in Mongolia, where he lived for a year while studying and teaching on a Fulbright Scholarship. In September, Nichols offered anti-corruption strategies to entrepreneurs at a national conference in St. Petersburg, Russia. Last month he led a weeklong seminar on corruption in Tashkent, Uzbekistan run by the Resource Network for Economic and Business Education. "A decade ago, corruption was not a proper subject for polite scholars or policymakers," Nichols and his co-authors wrote in a recent research paper. "Today, the creation of and comment on anti-corruption regimes is a growth industry."
Bribery, of course, is the most widespread form of corruption, and corporate strategies for dealing with bribe requests vary. According to Nichols, some companies opt to pay, sometimes damaging their public images and making it more difficult to refuse future requests. Others have