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Corruption is one of the many ethical issues happening broadly all around the world nowadays. At the present time, a worldwide concern over corruption is growing to a high degree because of several factors. First, it is all agreed that corruption is now universal, meaning that it exists in all countries, whether developed or developing, in the public or private sectors, and whether in non -profit or charitable organizations. Second, corruption is now the main and common issue happening in politics. Because of it, many governments have fallen, careers of the world renowned public figures ruined, and reputations of well -respected organizations and business firms badly damaged. Third, corruption can be a major obstacle in the process of econo mic development and modernization in a country. Many countries, especially in the Asia and Pacific regions, agree that corruption has a serious adverse impact on development, a major constraint in their economic, political and social development. Therefore, corruption is a serious ethical issue requiring an urgent attention at the highest level. 1.1 Corruption: Definition
There are many explanations given to define the term corruption. In general, it is defined as the abuse of entrusted power given to someo ne or an institution for the purpose of private gain. However, the most widely used definition for corruption is the use of public office for private gain, in other words, the use of official position, rank or status by an officeholder for his/her own pers onal benefits. Corruption is detrimental to a country because decisions are taken only to serve private interests, not for the benefit of the public. It has many negative impacts on a country, especially on the effectiveness and efficiency of its governanc e. Other definitions of corruption include ³a kind of behaviour which deviates from the norm actually prevalent or behaved to prevail in a given context, such as the political. It is deviant behaviour associated with a particular motivation, namely that of private gain at public expense´ given by Carl Friedrich (1972:18), and ³corruption as the exploitation of the public´ given by Jacob Van Klavaren (1954:25). Even though there have been a number of different attempts in defining corruption, no precise defi nition can be found which can be applied to all forms and types of corruption. Hence, in order to understand the term corruption more deeply and clearly, we need to look at the various types of corruption that happen in various contexts individually. All t hese will be discussed further in the findings together with the causes as well as the consequences of the well -known ethical issue.
PROBLEM STATEMENT This paper focuses on ages in all countr ies corruption. This paper consequences, as well in order to fight it. one of the major ethical issues that has been occurring for around the world. This ethical issue is none other than will also discuss about the types of corruption, its causes, as the remedial measures undertaken by various institutions
In addition. information on cases of corruption is partly obtained from online newspapers such as Berita Harian Online and Utusan Malaysia Online. and what remedial actions that should be taken in order to fight it from conquering a country¶s systems.0 METHODOLOGY The main method used in obtaining data and information for the purpose of this project is library research. in what situations it may happen. and iv) v) To identify and recommend remedial measures to fight corruption. in order to understand corruption as a whole. which is one of the major ethical issues occurring worldwide nowadays. this paper is prepared wit h the added objectives such as listed below. The list of all used materials will be included at the end of this paper under the heading of References.3. ii) iii) To identify the various cases of corruption that have happened in Malaysia in order to assess how high the level of corruption taking place in this country. 2 .0 OBJECTIVES This paper is prepared for the main purpose of identifying the ethical issue of corruption. To identify the consequences of corruption in order to understand why is it such a worldwide ethical issue that should be fought against. there is a need to look into it more deeply in terms of why it happens. Other than that. To identify the causes of corruption in order to understand why corruption occurs. The research is mostly done through readings of online journals and articles as well as textbooks and newspapers related to the particular topic. what will happen as a result of it. 4. information and data are also partly obt ained from websites only for the purpose of confirming some of the information that come as difficult to understand if being read from textbooks and journals. However. Therefore. All these will be discussed one by one under the topic of findings as well as recommendation. i) To identify the various types of corruption in order to understand the term ³corruption´ as a whole.
0 FINDINGS 5. Both fraud and embezzlement can be undertaken by an official alone without any involvement from a second party. embezzle ment. fraud. from most of the books and research papers on corruption that I have studied. the granting of public office is made based on family ties. Now. It occurs when a person intentionally misrepresents a material existing fact to another person with the knowledge of its falsity and it is done for the purpose of inducing the other person to act according to the first person¶s fraudulent intention. Besides these four common types of corruption. bribery. it also involves the actions of the officials for their own benefit or for the benefit of others that are closely related to them. The activity of bribery involves two parties ± the giver and the taker. in other words. patronage and the misuse of public property and funds. custom du ties or other public charges collected by government from private parties. influence peddling. I have come up with a conclusion that there are four common types of corruption which have been widely discussed more than the other types of corruption. subsidies. Bribes can also speed up the granting of permission. fees. An example of the act of nepotism is when a relative of a powerful figure gets a similar powerful position without appropriate qualificat ions. after we have gone through the various types and forms of corruption. and so on. Different persons have established their own types of corruption according to their own definitions and perspectives of the term corruption. and they are bribery. usually something dishonest. For example. For example. I have found that there are various types of corruption. fraud. The next type of corruption. a cashier can embezzle cash from his/her employer. bribes can as well alter or influence the outcomes of legal and regulatory process. Bribes can be used to reduce the amount of taxes. as in the case of nepotism. and nepotism. pensions. I have also encountered from my research that corruption can be classified into two main categories which are 3 .g.1 Types of Corruption From the research that I have done. And lastly. The first type of corruption. Other forms of corruption include extortion. by inducing or providing incentives to government authorities to not take any action when private parties engage in illegal activities. Meanwhile. bribes can influence those who get the contract as well as the terms of the contract and subcontracts when the project is executed. a financi al advisor can embezzle funds from investors. Bribes can also influence the allocation of monetary benefits (e. and it can arise in a variety of circumstances. or unemployment insurance). Another definition of embezzlement is the act of dishonest appropriation of assets which are usually fi nancial in nature by one or more persons to whom the assets have been entrusted. However. we can now conclude that corruption does not occur only in terms of money. embezzlement is defined as an act of stealing money or properties either from public or private institutions. is defined as an act of cheating someone or a party through dec eit for the purpose of getting money. And finally. Each of these types of corruption carries different definition and concept and happens in different contexts.5. Embezzlement is a kind of financial fraud and can range from small amounts to large amounts of money. is defined as an act of offering money or favours to influence someone to do something for you. in a government contract. licences and permits to carry out legal activities. nepotism is defined as an act of favouritism shown by public officials towa rds those who are closely related to them.
causes of corruption can be classified into two categories. Therefore. political corruption is corruption that influences the formulation of laws. news on activities of corruption committed by high officials. From my research. nowadays. adherence to religious belief is one of the factors that can determine the level of corruption in a country. All religious beliefs such as Christian. For example. So. Corrupt behaviour can be classified as an act of injustice because it can hurt other people. while in countries with low personal honesty are more likely to be involved in corruption. friends and supporters. o ne can use his/her position while in power to grant the favour or benefit to his/her relatives. and po licies. and Buddhism prohibit the act of stealing and deceit or any other acts of injustice that may harm other people. use the authority given to them to sustain their power. So. In public sector. such as getting a scholarship or a license even though you do not qualify for it. The third factor is the role of civil society . However.administrative corruption and political corruption. for example. There are three non -economic factors that can cause the existence of corruption. Political corruption then can be classified into two types. corruption o ccurs mainly because of economic factors. for exam ple. the freedom of media to report certain 4 . and usually involves smaller sum of money and junior officials. rules and regulation are being formulated in the first place. which are non economic and economic factors. It is a corruption that violates the legal rules and we can see this occurring in both public and private sectors. there might be low level of corruption in the country. 5. It is considered as a breach of property rights if one takes another¶s property without permission. religious beliefs also forbid the act of corruption. the role of media in fighting the activities of corruption. Meanwhile. The second factor is personal honesty . The main role of media is to publish news and information to the public. thus resulting in low level of corruption. Grand corruption takes plac e at the top levels of political system where policies. The first one is religious belief and faith . low level of corruption will be expected. But there are also a number of non-economic factors that can cause the existence of corruption. Meanwhile in countries with low adherence to religious belief and faith tend to have high level of corruption activities. for example. In countries with high personal honesty are less likely to be involved in corruption. civil servants may receive bribery to do their job more quickly than they usually do. Islam. Meanwhile. I am going to discuss these factors one by one starting from the non -economic factors. Nations that highly adhere to their religious belief may not commit any act of corrupt behaviour. when politicians or state agents whose duty is to make and enforce the laws in the name of the people. Hinduism. and wealth. regulations. which are grand corruption and petty corruption. Therefore. petty corruption takes place at the implementation e nd of politics when the public officials meet the public. Administrative corruption is corruption that changes the implementation of policies. status. Generally almost all societies have a concept of personal property rights and ownership.2 Causes of Corruption There are many factors that cause the activities of corruption to take place. in countries that have high level of personal honesty are more likely to have low level of corruption activ ities. and usually involves substantial amount of money and high -level officials. It takes place at the high levels of political system. In countries with high adherence to religious belief and faith. If media is free to report or publish any news.
2006). More governmen t regulation results in fewer free -market operations. there may be less involvement of civil servants in corruption. As for the economic factors determining the sources of corruption. The third factor is wages and prices (Senior. One type of government intervention is regulation that it imposes on the economic activities. Low wages can be caused by government intervention as w ell. If the level of government regulation intervention is too high on the economic activities. which then leads to more corruption. Furthermore. Therefore. Restrictions on foreign investment limit the inflow and outflow of capital. Government may also intervene on prices of goods in the market. Therefore. The first one is trade policy (Senior. if the level of government intervention in the economy is high. So in order to finance these. for example. In conclusion. If workers are not earning enough fro m their jobs because of the regulation on working hours. which do not need to be financed from public purse. the government steps in and regulates the operations in a hands -on manner. government can introduce minimum wage for civil servants. In conclusion. governments have to levy taxes. there will be high level of corruption. All governments need to finance goods and services that are genuinely public goods such as defence. This can lead to the emergence of secondary markets in command economies which may raise a lot of corruption activities. if civil servants are paid similar to the amount of wages paid to those in private sector. 2006). thus corruption may fall. for example. If there is high restriction in trade activities in a country. they may resort to receiving corruption. 2006). may also cause the activities of corruption. import ers may be willing to pay more in addition to import duties and this extra payment may be in the form of bribery to the officials responsible in allocating the quotas. for example. Generally. 2006). government regulation may prevent fraud. the opportunity for corru ption activities to take place may be high as well. In the banking sector.issues such as corruption has been restricted by the authority. Instead of letting the market operation run freely according to its own regulation. However. have to be paid for from taxation. Low wages given to civil servants. there will be low level of corruption. the level of corruption would be higher. the fifth factor is fiscal burden of government (Senior. there are five main variables. Government can impose barriers to trade. Finally. Many activities undertaken by the government such as health and education. Such regulation may affect working hours of many jobs. the higher the amount of government expenditure in financing public 5 . thus those who are in the position of controlling the movement of funds are more likely to be involved in corruption. The fourth factor is capital flows and foreign investment (Senior. 2006). In order to obtain more quotas than they are entitled to. and it can also influence the cost of labour in the market by regulating working hours. in countries where restrictions on the movement of funds are high. The second factor is government intervention in the economy (Senior. companies may find ways to corrupt public officials in order to gain freedom in running their operations or to induce the public officials not to take any action if their operations violate the regulation imposed by the government. regulation may also make the financial system more co mplex and therefore increase the opportunity for the corruption of public officials. mainly through import tariffs and quotas. there will be high level of corruption in countries where government intervention on prices and in labour markets is high. especially if the amount of wages is not comparable with t he level of duty and performance. For example. i n countries where media is free to report and publish any news to the public.
corruption can arise in a variety of situations and because of various reasons as I have already discussed above. both in public and private sectors. who was also charged for bribing officials in Jabatan Pendaftaran Negara and Jabatan Imigresen Malaysia. 65 lawyers have been charged for fraud invol ving a variety of commercial and trade crimes. corruption is considered the number two obstacle on the country development. 5. 5. From my research. I will discuss some of the examples of cases of corruption that have occurred in Malaysia under each type of corruption that I have mentioned before. 5. The activities of fraud in this country.1 Bribery Bribery is the main form of corruption that occurs mostly in this country. There are many cases of corruption occurring in this country. Another case of fraud involves a Member of Parliament and an ADUN with two of their assistants. charged with 30 accusations of false claims of government money. as have been rep orted in the media. In Malaysia. accepting bribes as an inducement to not take any action towards an illegal activity of smuggling sands to Singapore.3. I have found out that most cases of corruption in Malaysia happen in the forms of bribery and fraud. The higher the level of taxation that needs to be paid. For example. All of the claims were said to finance eight programs but all programs had never been organized.goods and services. In the following sub -points. 6 . usually involve civil servants of the high rank. there will be higher incentive to avoid paying tax. ranging from top-level officials involvement to low -level officials involvement. thus leading to corruption. In another recent case.3. Another case of bribery is the case of a civil servant serving as assistant superintendent for Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) who was charged for accepting bribes from a suspect of corruption as an incentive to not continue investigating th e suspect. accountants may be bribed to present false account statements in order to avoid paying high amount of tax by the companies. As a conclusion.3 Cases of Corruption Corruption occurs all around the world. One example is the case of a university dean certifying a false document amounting RM 138. the higher the rates of direct and indirect taxation will be imposed. two serving in Kastam Diraja Malaysia (KDRM) and one serving in Pejabat Tanah dan Galian (PTG). 600 for unsupplied goods. One case of bribery that has happened in Mal aysia is the case of three civil servants.2 Fraud Fraud also is one type of corruption that is common in this country.
Economic rent. especially the poor. 7 . This involves import of large variety of luxury goods from abroad such as fashion clothing and luxurious cars. an d export. Its adverse impact on private investment. which can bring benefits to a developing country. embezzlement. Bribe payments may also constitute a form of tax on enterprise whose burden falls more heavily on small businesses as they normally do not enjoy political patronage. Corruption: Causes. permission to engage in activities like transport. corruption leads to unfairness that always hurt the citizens. which are not shared by all citizens. Bribes may have to be given before any investment takes place and upon entering into negotiations for the establishment of an enterprise 2. and where there are no relevant and reliable economic information and data for planning and decision making by business people. Consequences and Cures. If there is investment bein g made by foreign investors. 2000. One of them is uneven distribution of income . redistributi on of income. researchers have identified that corruption greatly affects the economic development of a country in particular. 7 No. As for the foreign direct investment. and misappropriation of public funds and properties. Under such conditions. corruption may also give negative effect on the government budget. Asia-Pacific Development Journal Vol. It leads to misallocation of resources. which is defined as abnormal or monopoly profits that can give large benefits. is usually enjoyed by pr ivileged and well -connected people under a corrupt system. corruption has great effects on a country¶s development. corruption may not only raise the initial costs of investment. The services provided by these people do not always come cheaply because they may add to the cost and complexity of doing business under a corrupt regime. is considered harmful for a developing economy. long term investment decisions cannot be taken. and hurts the poor. but also can reduce the incentives to invest. There are various consequences of corruption that I have identified from the researches that I have done on this topic. both domestic and foreign. leading to burden of corruption b eing placed on the poor. As for the consequences on the expenditure. Corruption also has an impact on investment . 2 Ibid. Apart from that. particularly its economic growth. import. Consequently. The consequences on the revenue will mostly come in terms of ser ious losses resulted from corrupt activities such as fraud. Various activities such as procurement of leases for land and building.4 Consequences of Corruption As have been mentioned before. distortion of public policies. This results in uneven distribution of income. it may only be in the activities that exploit the country¶s natural resources. Pg. it will not come in a big way where policies are unclear and inconsistent. This means that there is a tendency for wealth to be concentrated in the hands of a tiny minority of the population. 1 U Myint. 47. Since corruption usually involves monetary value. all can involve payment of substantial bribes and require the services of agents and expertise.5. Co rrupt regimes tend to devote national budget expenditures on acquiring large projects that can contribute economic rents. Another consequence of corruption is the emergence of distorted consumption pattern aimed at meeting the lifestyle of the new and extremely rich urban elite 1. as well as obtaining connections for government services like water and electricity. 2. rather than spending on improving the quality of education and health services.
environmental controls. the main gainers of a corrupt system. Besides that. pg. This is because reforms require greater transparency. pg. ferries and passenger ships have sunk in seas and rivers as a result of overload. special privileges. The rich and the powerful. 3 4 Ibid.In any society. 50. For example. 8 . 5 Ibid. and so on. corruption can also have a negative impact on economic reforms. All these resulted from corruption. obscure insider trading practices and financial scams that can result from poorly supervised financial systems also have seri ous economic and social consequences 4. Violating these laws for economic gain through corrupt means can cause serious social harm 3. free and fair competition. Finally. buildings collapsed as a result of violating building codes through corrupt deals between involved officials and building contractors. lots of lives have been taken away in flash floods resulting from soil erosion caused by illegal logging. will therefore oppose reforms 5. deregulation. and price distortions ± all of which will reduce opportunities for economic rent on whic h corruption thrives. It places severe constraints on a country¶s capacity to undertake economic reforms. traffic laws and prudential banking regulations. 50. there are laws and regulations to serv e social objectives and to protect the public interest. Ibid. accou ntability. and reliance on market forces and private initiative. 52. such as building codes. pg. as well as limiting discretionary powers.
9 . the leadership must also display firmness. pg. 55. integrity and capacity for hard work. U Myint (2000) in his journal entitled ³Corruption: Causes. ii) Credibility A country should practice credibility in its effort to fight corruption by convincing the offenders both on the demand and supply side of a corrupt deal that the government is serious about fighting corruption.0 RECOMMENDATIONS Various measures have been proposed in order to fight corruption since it was considered a crucial ethical issue long ago. Consequences and Cures ´ has highlighted some remedial measures that can be undertaken by both government and private institutions in a country in the effort to fight the is sue of corruption from spreading to a much higher level. Top leadership must set a good example with respect to honesty. A publicity campaign to create greater awareness on the adverse impacts of corruption should be held to attract the citizens to contribute towards the effort of fighti ng corruption in their country. Since fighting corruption will involve taking difficult decisions. therefore they will be willing to respond and extend their full cooperation in resolving the problem. political will and commitment to carry out the required reforms 6. Some of these remedial measures include: i) Leadership Leadership in a country has an important role in combating corruption.6. 6 Ibid. iii) Involving people Ordinary citizens are a good source of information because they have experienced a lot of firsthand experience with corruption. Official pronouncement on the desirability to bring corruption under control must also be done so that the ordinary citizens will be convinced that the government is serious with the effort to fight corruption. Actions such as publicly punish some well -known corrupt people and publish trials a nd convictions of important officials and businessmen on charges of corruption are some examples of ways the government can use to convince the public about its serious effort to fight corruption.
For example. the government has proposed the National Integrity Plan (NIP) for the main purpose of combating corruption. Apart from these me asures highlighted by U Myint. Therefore. Therefore.iv) Responsible press A responsible press to gather. there may be negative effects on its development. 7 Ibid. A responsible and an investigative press has played an important role in many countries. strengthening the auditor general office. and in this concept there have been included some important moral values that are thought will be helpful in creating a unified country in terms of the citizens. less -consuming and less burdensome. in exposing misconduct as well as in serving as a watchdog to li mit corruption and preventing it from getting out of hand 7. and finally. organize. In addition. integrity is one of the moral values being promote d by this concept. present and disseminate information is considered vital to create greater public awareness and to provide the momentum for undertaking reforms to overcome corruption. v) Improving institutions Corruption can also be reduced by improving institutions. it is clear that this Gagasan 1Malaysia concept is one way of combating corruption in this country. pg. Malaysia¶s current Prime Minister has recently proposed a concept called Gagasan 1Malaysia. Improvements have been done on the public service delivery systems such as the Internal Auditing System. 55. analyse. The government also has made an effort on reducing corruption in politics by proposing the Code of Ethics for Members of Parliament. both developed and developing. The Anti Corruption Academy has als o been established in order to train anti -corruption officers from Malaysia and across the region. and the Central Bank o f Malaysia. promoting efficiency of the public force. All these preventive measures to combat corruption show that corruption is really a crucial ethical issue needing urgent atten tion at a highest level. If a country did not do anything to fight the activities of corruption. there are other types of measures to combat corruption. the Public Complaints Bureau. 10 . In order to achieve the goal of a unified people. making procedures and requirements to conduc t business in the functioning of law courts and in the administration of justice to be much smoother. in Malaysia. This measure includes actions such as improving the legal framework. all these examples of remedial actions to fight corruption are recommended so that corruption will not get worse as to damage the underlying systems of a country.
0 CONCLUSION Based on the researches that I have done and all the works that I have gone through. But this does not mean that corruption cannot be combated at all.7. developed nation. as years pass by. but it also hurts the poor. have experienced the adverse impacts of corruption towards their social. corruption seems to be more and more obvious and widely practiced even in the presence of a clear approach to combat it through implementation of new policies. there has been no effective way to reduce corruption to zero percentage. and therefore have come up with various measures to fight or at least reduce the activities of corruption in their countries. even in a very syst ematic government. political. All efforts to combat corruption should be continued and improved so that it can be brought under control and minimized and a country can then proceed with its efforts to become modern. and so on. I am now able to make a conclusion that corruption is a critical ethical issue that needs to be investigated and prevented as it gives adverse impacts not only on a country¶s underlying governing systems and its economic development. plans. both developing and developed. and economic development. Many countries. 11 . However. Until now.
2. Corruption: concepts. Retrieved from: 12 . 2000. Corruption: Causes. types.REFERENCES 1) Ian Senior. 7 No. 2005. causes and consequences. Corruption ± The World¶s Big C. 2006. Development Journal Vol. CADAL. Asia-Pacific 3) Boris Begovic. 2) U Myint. Consequences and Cures. Great Britain: The Institute of Economic Affairs.
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