Corruption: Ethical Values, Causes,

Impacts, Laws and Prevention

Sub: Ethics and Values

Code: HUM1021
Faculty: Priyankar Sen
Meaning of Corruption
Types of Corruption
 Petty corruption
occurs at a smaller scale and takes place at the implementation end of public
services. ..
…PLACES such as registration offices, police stations, state licensing boards,
and many other private and government sectors.

 Grand corruption
is defined as corruption occurring at the highest levels of government in a
way that requires significant subversion of the political, legal and economic
systems. ……commonly found in countries with authoritarian or dictatorial
governments but also in those without adequate policing of corruption.

 Systemic corruption (or endemic corruption)

is corruption which is primarily due to the weaknesses of an organization or
process….
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Causes of Corruption
As per R. Klitgaard [1998]:

corruption will occur if the corrupt gain is greater than the penalty

multiplied by the likelihood of being caught and prosecuted:

Corrupt gain > Penalty × Likelihood of being caught and prosecuted

The amount of corruption (C) could be expressed as:

C=M + D – A
M= monopolyon the supply of a good or service
D= Discretion enjoyed by suppliers
A= supplier's accountability and transparency to others.
DO YOU WANT TO ADD ANYTHING??
Causes of Corruption
Since a high degree of monopoly and discretion accompanied by a low degree
of transparency does not automatically lead to corruption, a fourth variable
of "morality" or "integrity" has been introduced by others. The moral
dimension has an intrinsic component and refers to a "mentality problem",
and an extrinsic component referring to circumstances like poverty,
inadequate remuneration, inappropriate work conditions and inoperable or
over-complicated procedures which demoralize people and let them search
for "alternative" solutions.
*Hence the amended Klitgaard equation is:

Degree of corruption = Monopoly + Discretion – Transparency –

Morality
According to a 2017* survey study, the following factors have
been attributed as causes of corruption:

1. Greed of money, desires. 8. Gender inequality

2. Higher levels of market and
political monopolization
3. Low levels of democracy, weak
civil participation and low
political transparency
4. Higher levels of bureaucracy and
inefficient administrative
structures
5. Low press freedom
6. Low economic freedom
7. Large ethnic divisions and high
levels of in-group favoritism
9. Poverty
10. Political instability
11. Weak property rights
12. Contagion from corrupt
neighboring countries
13. Low levels of education
14. Lack of commitment to society
15. Extravagant family ?
*Dimant, Eugen; Tosato, Guglielmo (1 January 2017). Journal
of Economic Surveys. 32 (2): 335–356
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