Bribery Raphaëlle Barlier, Magalie Kerdiles, Armand Marcireau, Adeline Selle Causes, Consequences Corporate Social Responsibility Master 2 – International Management Institute of Business Administration, Poitiers

Introducing corruption « Corruption involves behavior on the part of officials in the public and private sectors, in which they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed. » (World Bank, 2005) Transparency International (leading NGO dealing with corruption) Corruption hardly measurable Scoring by using standardized questionnaires Getting more and more broadcasted by the media

Factors contributing to corruption Regulations, Authorizations and Taxation Level of public sector wages Penalty systems and institutional control Transparency of rules, laws and processes Examples by the Leadership

Consequences of corruption Decrease in economic growth by : Lowering incentives to invest Weakening public infrastructures and quality of services Altering the composition of governments expenditures Analysis shows that an improvement from 6 to 8 on the corruption index would experience a 4% increase in investments rates

Consequences of corruption Social effects : frustration and disillusions result in a weak civil society. Loss of truth in the political system. Obstacle to democracy and the rule of law. Environmental degradation : careless exploitation of natural resources.

Fighting corruption NGO and Churches in action : West Africa Rules of conduct from private firms : EDC (Canada) OECD Convention against Bribery of Foreign Public Officials in International Business Transactions Recent improvement, but there is much more to do