Corruption and Bribery in public sector

Question :

Write an essay  Bribery and Corruption in the public sector, is endemic and unavoidable in all societies.

(a) An analysis of the current academic literature in this area comparing, contrasting and critiquing views.

(b) An evaluation of the US and UK regulatory framework in the chosen area.

Introduction

Bribery as well as corruption within the public sector is considered as one of the key challenge that is faced by many governments all over the world (Basheka, 2011). Corruption is trying to get engaged in various activities like public funds looting by the falsification of the documents (Campante, Chor & Do, 2009). Corruption is also referred as the crime in various countries and it is noted that many people have caught or various corporate are also involved in this corruption are required to face the persecution (Campante, Chor & Do, 2009). Bribery on the other side is involved in collecting the money or doing any such task which is not favorable. Both the corruption and the bribery are referred as threat to the economy of any country and are considered under the manifestation that something is going messy (Basheka, 2011). This essay tries to delineate over the different aspect of the corruption and the bribery and also tries to investigate whether it’s an endemic and either it is unavoidable within the societies.

Corruption and Bribery in public sector

Even though it is viewed that the corruption and the bribery is endemic or either unavoidable, there are certain public entitles as well as corporations that has tried to manage its growing prevalence (Basheka, 2011). Therefore, these factors indicate that if the relevant strategies are not implemented then it can become an issue that could be avoided (Campante, Chor & Do, 2009). As per the Transparency Global Bribe Payers Index report of 2002, the increasing rate of the bribery practices within the companies like oil and gas, public works as well as defense and arms (Owen, 2013). This has increased because once the bribery is made the norm in the particular industry where it is actually penetrated (Brasoveanu, 2013).

It is noted that good corporate governance is considered as the prerequisite in decreasing the corruption is the issues related to coordination and these issues need to be addressed (Campante, Chor & Do, 2009). Principles related to the good corporate governance like the transparency as well as accountability are actually important in addressing the operative performance within the entity, but are also required in reducing the corruption level (Hess, 2009). It is noted that accountability imposes the barriers in the corruption and it is also noted that corruptors are in the long run tries to stem the malpractices (Campante, Chor & Do, 2009). All the public officials need to be accountable and also tries to remain transparent through permitting the external auditors within the audit in the financial books. It is important that the public officials need to be those people having the high integrity level for ensuring that they are not so easily persuaded to get involved in the issues of corruption and bribery (Hess, 2009). They are actually require to perform their task with full honestly as well as diligent (Campante, Chor & Do, 2009).

Good Corporate Governance and Transparency

It is true that corruption can be reduced in the countries that hold the accountability corporate boards (Campante, Chor & Do, 2009). When these corporate boards get accountable to the shareholders bribery incidences it is reduced (Campante, Chor & Do, 2009). Consequently, all these members need to get competent and also requires representing the shareholders interest (Maiden, 2013). It is expected that the boards should become stronger to make its quite credible for every manager to get committed to no to bribery policy when they are dealing with the public officials that need bribery (Campante, Chor & Do, 2009). This kind of strong board also supports in determining the extortion needs through the corrupt officials through enhancing the risks that they face (Campante, Chor & Do, 2009). This is due to the increasing chances of whistle blowing from the side of insiders that has increased (Xhafo, 2013).

Through putting in place the increase standards for gaining the accounting data reporting is important between the public sector in order to curb and for decreasing the corruption level (Campante, Chor & Do, 2009). This also tries to enhance the probability related to exploring the instances along with act of bribery. When the better practices of accounting are actually practiced, it supports in monitoring the data as well as activities of the agents and the principles in effective manner (Wu, 2005). Through attaining the high accounting, along with corporate officials and standards public getting involved in the issues of corruption will support in exploring the hidden facts of bribe payments and will even face the law wrath (Ionescu, 2013). The regulations and rules related to the reporting of accounting information as well as its disclosure need to get strengthen for supporting in fortifying the monitoring system as well as internal control within the public entity (Campante, Chor & Do, 2009).

The reformation of the corporate governance within various countries in actuality is indeed the corruption in different countries (Dhami & Al-Nowaihi, 2007). It is noted that Britain and US are also not any exemption regardless of its facts that these are powerful economies globally (Dhami & Al-Nowaihi, 2007). There are few corporate in the USA that has faced the issues of corruption such as Typo, Enron, along with Worldcom and many other companies (Dhami & Al-Nowaihi, 2007). The key reason related to the high escalation rate of corruption is the lack of proper management (Dhami & Al-Nowaihi, 2007). Both the corporations and the public entitles are also governed through the corrupt individuals as well as misuse of the public office instead of grabbing the opportunities for helping the people (Dhami & Al-Nowaihi, 2007).

As per Wu (2005), the increasing corruption level in the Britain has enhanced the bribery level between the public officials (Wu, 2005). It is noted that among the 20 people, one has given the bribe for accessing the public services of the country like health services, education, and justice (Dhami & Al-Nowaihi, 2007). It was noted that 2/3^rd of the people in Britain has mentioned that in the past two years, the corruption has increased in their country. All these findings are attain through the transparency international reports that have carried out the survey all over the world by including 114000 people from around 107 countries (Dhami & Al-Nowaihi, 2007). According to these statistics, it is reminiscent that corruption and bribery is endemic and also needs efforts for its eradication (Dhami & Al-Nowaihi, 2007).

Strengthening Accounting Standards and Reporting

The public sector needs to provide services to the people and in various countries like US and UK has adopted certain measures in order to support in curbing the menace (Dhami & Al-Nowaihi, 2007). One such strategy that is put on by these countries is establishing the strict laws, which needs that the public officials could be caught while stealing or either getting engaged in any such act of corruption and bribery (Dhami & Al-Nowaihi, 2007).

The issues related to corruption and bribery could be improved through the accounting standards, which should be adopted by the public sector and get, comply with it (Dhami & Al-Nowaihi, 2007). All the public incomes as well as expenses should also be accounted into it.  It is needed to conduct the external audit of the records and the financial books; one should also authenticate the likelihood of the public funds misappropriation (Dhami & Al-Nowaihi, 2007). This strategy has supported in the high level for decreasing the corruption prevalence in the offices. Through the technological developments, there are many offices that have adopted the e-government that provides the services to their members by the help of internet (Dhami & Al-Nowaihi, 2007). When public services are offered through internet it can easily minimize the interaction among client and the public officials, and therefore, it can reduce the bribes aspects. Other benefits of e-government in public services are that it could facilitate the ongoing investigation and prevent the checks of corrupt acts. Therefore, mechanism related to e-government should be used in fighting the corruption.

Conclusion

Efforts are raise to create the awareness along with stamping out the issues of both corruption and the bribery in the private as well as public sector but still many cases are lying of corruption. Various initiatives have been taken to raise the awareness as well as encouraged to enforce the criminal laws that are against the corruption. This however seems to trying triggering the positive changes, because there are many companies officials that have complained that they have actually loss the contracts due to the bribery. These surveys have clearly depicted about the intractable nature of the increasing corruption, which has also made the people to hold on their view about the corruption that its universally not approved rather it is universally prevalent. This concept is consistent through the fact that the corruption has remained as endemic and it is also unavoidable within the society. Even within the stage of the corruption, everything is not lost, rather there are some hope that the corruption could be stamped out. This will require the tripartite attacks, which includes the private and the public sector as well as civil society.

Reference

Basheka, B. (2011). Economic and political determinants of public procurement corruption in         developing countries: an empirical study from Uganda. Journal of Public Procurement,          11(1), 33-60.

Brasoveanu, I. (2013). Public sector influences in the development of underground economy and corruption in Romania, in EU context. Economic Computation & Economic       Cybernetics Studies & Research, 47(1), 167-184.

Campante, F., Chor, D. & Do, Q. (2009). Instability and the incentives for corruption. Economics   & Politics, 21(1), 42-92.

Dhami, S., & Al-Nowaihi, A. (2007). Corruption and the Provision of Public Output in a      Hierarchical Asymmetric Information Relationship. Journal of Public Economic Theory, 9(4), 727-755.

Hess, D. (2009). Catalyzing Corporate Commitment to Combating Corruption. Journal of Business Ethics, 88, 781-790.

Ionescu,  L. (2013). The impact that e-government can have on reducing corruption and enhancing transparency. Economics, Management & Financial Markets, 8(2), 210-215.

Maiden, B. (2013). Fighting Corruption: Yes We Can? Compliance Reporter, 7, 1-4

Xhafo, J. (2013). Some issues on anticorruption legal reform in public administration.         International Journal of Management Case, 15(3), 84-97.

Owen, J. (2013). Britain’s bribery boom: One in 20 has bribed a public official as corruption rises. Retrieved from https://www.independent.co.uk/news/uk/home-news/britains-bribery-boom-one-in-20-has-bribed-a-public-official-as-corruption-rises-8696181.html

Wu, X. (2005). Corporate Governance and Corruption: A Cross-Country Analysis. Governance,    18(2), 151-170.