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Business Ethics & Morality Assignment
Mark Regan
Question
Bribes to government officials, side payments to sidekicks, facilitation payments, donationsto political parties before election…. When is corruption morally corrupt? Analyse the criticalmeaning of corruption in an international business setting and assess it’s economic and moralimpact.
1. What is Morality?
Morality is a term used in regular conversation, but it’s true meaning is oftenmisunderstood. Because there are several definitions for the term, there has been muchconfusion when used in discussions. Many academics believe that a certain amount of timeneeds be spent dealing with that confusion before one begins to use the term “morality” indiscussions.For the purpose of this paper, “morality refers to an ideal code of conduct, one whichwould be espoused in preference to alternatives by all rational people, under specifiedconditions”
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. Morality generally refers to a code of conduct which is held to be authoritative inmatters of right and wrong. A persons morals are defined by culture, society, philosophy andpersonal conscience, hence a person’s perception of morality varies greatly. In the domain of corruption, it is important to analyse the situation from the perspective of each of the stake-holders keeping in mind both long and short term affects.
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Wikipedia,
 Morality
, 3
rd
July 2009, http://en.wikipedia.org/wiki/Morality
 
2. What is Corruption
The term corruption can be used in a wide variety of contexts, each having differentmeanings. It is derived from the Latin term
corruptio,
meaning seduction from loyalty, diseased,corrupt condition and is generally associated with moral decadence
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. The concise OxfordDictionary defines corruption as evil, morally depraved or willing to act dishonestly in return formoney or personal gain
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. In terms of social science, according to the Collins Dictionary of Sociology (1995), corruption is, “the abandonment of expected standards of behaviour by thosein authority for the sake of unsanctioned personal advantage”. (Siergiejew, 2003)The World Bank, an anti-corruption agency, define corruption in more simple terms as
theabuse of public office for private gain
. The World Bank proceeds to categorise corruption into severalcategories; Bribery, Theft, Patronage and Influence Peddling. Considering the above categories,one would assume that corruption per se is easy to define and categorise. However, in reality,corruption can manifest itself in many different forms within the aforementioned categories.Depending on the observer’s ethical and moral background, an action may or may not belabelled as corrupt.In China for instance, building relationships with business partners is extremely importantand it would be customary for Chinese businessmen to exchange personal gifts or services. TheChinese place significant importance in the concept of 
關係
(Guanxi) and would not associatesuch a gesture with corruption. This concept is central in Chinese society and describes the basicdynamic in the complex nature of personalised networks of influence and social relationships. Itis possible that an observer from outside of China would mistake this gesture as corruption. Inparticular, if the gift is being given to a person in authority, the motives might be seen asdubious. A persons perception of corruption depends almost entirely on their cultural, ethical andmoral values. In many cultures, Religion provides the underlying framework behind our ethical,moral and cultural beliefs. In fact, religion and morality have been closely intertwined since thebeginning of western thought. The Greeks focused on the concept of 
homer 
, “a body of textstransmitted first orally and then written down in the seventh century BCE” (StanfordEncyclopaedia of Philosophy). Morality and religion are connected in the Hebrew Bibleprimarily by the category of God's command. God issues a series of commands. Firstly, “Letthere be light”. Then, af ter the creation of animals, God gives a second kind of command, “Befruitful and multiply”. In the second chapter there is a third kind of command. God tells Adamthat he is free to eat from any tree in the garden, but he must not eat from the tree of theknowledge of good and evil. When Adam and Eve disobey God, they are expelled from thegarden. “God is setting up a kind of covenant by which humans will be blessed if they obey thecommands God gives them”. (Stanford Encyclopaedia of Philosophy)
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Babalon,
 Latin Dictionary
, 1 July 2009, http://www.babylon.com/define/112/Latin-Dictionary.html
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Oxford Dictionary, 1 July 2009, http://www.askoxford.com/concise_oed/corrupt?view=uk 
 
 As we can see, corruption is a highly subjective matter that depends on a person’s ethical,moral, cultural and religious beliefs. Both the extent of corruption and people’s perception of it varies greatly across the world. However, despite the many definitions for corruption and it’ssubjective nature, researchers agree that corruption has damaging effects on democracy andeconomic progress.
3. Why is Corruption Important in an International Business Context?
Corruption has a considerable effect on our lives because it is all around us. Theemphasis on making money is so great , the emphasis on getting rich, no matter how,is so tremendous, that it influences virtually every aspect of our society.
- Lawrence Ritter 
Corruption has received an enormous amount of attention in recent years. In particular,academics and researchers have analysed the topic in detail. Organisations such as the WorldBank are very concerned about corruption and the effect it is having on countries throughoutthe world.Thankfully, the social science of corruption and it’s effects are better known now than 200 years ago. During this period, the world has changed dramatically and as a result, corruptionnow poses a far more serious threat. The main reasons for the elevated importance of corruption are inequality and international trade.Over the past 200 years, the world has experienced a dramatic change. Appendix 2 showsthat in 1807, that the average life expectancy was less than 40 years for the vast majority of theworld. As countries began to develop and prosper, their health systems improved accordingly.The present day reality can be seen in Appendix 1; developed and emerging economies have alife expectancy between 65 and 85, whereas the poorest countries in the world (largely Africancountries) have only improved marginally. In fact, the discrepancy between the rich and the poorhas only widened. It is this disparity that provides corruption with a solid foundation on which tothrive. With this in mind, It is important to consider both globalisation and international trade.Both have caused an increase in foreign direct investment (FDI) in developing countries. This isa natural progression as developed markets become saturated, trade barriers decrease and risksassociated with international trade decreases. As FDI is a critical driving factor behind theemergence of developing countries, it is seen as a positive force in development.However, the growth of international trade between countries of disproportionate wealthhas presented a serious problem in relation to corruption. Due to the disparity between incomelevels, foreign investors are particularly susceptible to corruption. Developing countries oftenhave administrative procedures for international companies entering the the host market. Thedeveloping country establishes these procedures to ensure that the multinational companies meet
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FYI: This essay scored 85% in Business Ethics. Course: Masters in International Business.

Hi Mark, am trying to download the report so i can use it but i cant any help plz

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