What are the types of corruption; what are the effects of corruption on the multinational corporation? How can MNCs effectively deal with this problem?
Marshall (n.d.) identified the types of corruption as:
a. "Behavior on the part of officials in the public sector, whether politicians or civil servants, in which they improperly and unlawfully enrich themselves, or those close to them, by the misuse of the power entrusted to them."(Asian Development Bank 1999).
b. "The abuse of public office for private gain"
c. "The abuse of public or private office for private gain"
d. "the misuse of entrusted power for private benefit. In this there are three elements (i) a misuse of power; (ii) a power that is entrusted (i.e. it can be in the private sector just as much as in the public); and (iii) a private benefit (i.e. not necessary personal to the person misusing the power, but including as well members of his or her immediate family and friends."
The effects of corruption on the multinational corporations are:
Corrupt host countries are less likely to ...
This discussion deals with corruption that affects international business and how multinational corporations are dealing with the problem.