Corruption and integrity in governance

Corruption and Integrity

Over the last several years, the issue of corruption has been increasingly brought to the forefront. Part of the reason for this, is because the downfall of the Soviet Union and the focus on globalization would highlight this persistent problem that was occurring. However, beneath the surface corruption has been a major problem going back to the days of William Shakespeare, as this was theme was discussed in many of his plays. (Tanzi, 1998) This is important, because it shows how this issue has always remained a continuing problem, with it facing less or more emphasis depending on: the political and economic situation in a country. As a result, there would be vast differences between the underlying levels of corruption from one country to the next. To fully understand the differences between nations and their underlying levels of corruption requires: comparing the most corrupt countries with the least. This will be accomplished through: examining the trends of corruption in these countries, the differences between these nations, the influence that culture plays in business ethics, the major ethical problems (with the most corrupt countries), the actions / activities that favor the most ethical nations, possible strategies that can be used to reduce corruption and how the U.S. compares with the least / most ethical countries selected. Together, these different elements will provide the greatest insights, as to the underlying challenges facing: businesses, governments and societies around the globe when it comes to corruption.

What are the trends in corruption for these respective countries?

To determine the various trends that are emerging in corruption requires that we compare two of the least corrupt countries with the most corrupt. This will be accomplished by contrasting the differences between: Denmark as well as New Zealand (the least corrupt) with Myanmar and Somalia (the most corrupt).

When you step back and analyze the underlying trend, it is clear that Denmark and New Zealand are seeing similar developments in corruption. Where, they have reached the lowest levels in fraud (on the Transparency International Index). However, the position for number one and number two is continually changing as both countries are competing for these spots. As a result, their positions will switch from one year to the next. This is important, because it shows how the underlying trends in corruption are being reduced, as the two nations fight to be number one. ("CPI Report," 2010) (Shively, 2009)

In the case of Somalia, they are facing a similar trend (only at the bottom of the Transparency International Index). Where, the country has remained at the lowest spot for several years. However, the recent addition of Myanmar to the second lowest spot indicates that the underlying levels of corruption are becoming worse. The reason why is: they fell from 176 to 177 on the list (the second lowest). In this situation, the underlying trends for corruption in these countries are becoming worse or are remaining at the current levels. ("CPI Report," 2010) (Shively, 2009)

What are the major differences between the most and least corrupt countries you selected?

The differences between the most and least corrupt countries are: the literacy rate, the overall amount of political freedoms, the ability of the government to address the needs of the people and the rule of law. In the case of Denmark and New Zealand, they have considerably higher literacy rates and there are greater amounts of political stability (due to the democratic principles that are practiced). This has an effect on the ability of the government to address needs of the people, which helps to support the rule of law. These different elements are important, because it shows how there is a cultural tradition within these society, to always embrace various Western-based principals (also known as rule-based societies). ("Denmark," 2011) ("New Zealand," 2011)

As far as Myanmar and Somalia are concerned they have: low literacy rates and the overall amounts of political freedoms are limited (due to the lack of democratic principles that are being practiced or a functioning government). This has an impact upon the ability to deliver different services. Where, there is no functioning central government in Somalia and a military dictatorship in Myanmar. As a result, this will have an effect upon the rule of law through: the lack of stability or the inability to create regulations that support the needs of the people. This is significant, because it shows how the cultural traditions in these societies are based upon supporting collectivism. Therefore, there will be more of an emphasis on the ideas of the group vs. protecting the rights of the individual. ("Myanmar -- Burma," 2011) ("Somalia," 2011)

What influence does culture play in the countries business ethics?

Culture plays a major role in business ethics, because it establishes a basic foundation for how everyone within society will view the ideas of morality. These will be influenced based upon: the best interests of the individual or the group. In the case of business ethics, this means that these views will play a role in determining how the business is interacting with customers. In those nations where there is an emphasis on the individual, the business will seek out ways to address the underlying challenges affecting each customer. As they are trying to address their needs and provide them with the best services (based upon these underlying principals). In those cultures where there is an emphasis on the group (through collectivism), this means that there is a focus on addressing the needs of larger segments of the population. At which point, there will be less focus on addressing the needs of each customer. These two different views will have an effect on ethics, by determining how a business will apply these standards in their dealings with customers. As a result, this means that the culture will determine how ethics is applied in a particular region (because of these different cultural views).

What are the major ethical problems of the least ethical countries?

The biggest ethical problems facing Denmark is political corruption. In this case, many organizations and private business groups will often provide financing to different political campaigns. This is part of an effort to have increased amounts of influence, over the decisions that are being made about pending legislation. ("Transparency in the Financing of Euro Parties," 2011)

In New Zealand, they are wrestling with political corruption that is different from Denmark. In this case, the political establishment is unresponsive to some of the different demands from the people. Where, many maintenance projects receive more significance, based upon the perceived political power in a particular area. ("New Zealand is the least Corrupt Country on Earth," 2009)

What issues or actions favor the most ethical countries?

The issues or actions that favor New Zealand and Denmark, is that both countries are willing to address these challenges head on, by investigating alleged incidents of corruption. This takes place mainly through various anti-corruption task forces. ("Corruption Practices Investigation Bureau," 2009)

At the same time, Denmark is following procedures outlined by the EU. In this case, they are focused on supporting various forms of political corruption through the public financing of campaigns. Where, the politicians will receive a certain amount of public financing, so that they do not have to be as reliant upon special interest groups. ("Transparency in the Financing of Euro Parties," 2011)

What are possible ways to lessen the corrupt and unethical behaviors?

The best possible ways to reduce the overall amounts of corruption is to eliminate the culture that allows it to exist. To do this means that there must be strict regulations against corruption and unethical behavior (through various laws). Then, there must be an anti-corruption task force that has the ability to: investigate and go after those individuals who are involved in various forms of the corruption. These two elements are important, because they are highlighting how there needs to be effective laws and enforcement of these regulations. (Farrell, 2009, pp. 203 -- 230)

That being said, there also needs to be the political will to go after anyone who is engaged in any kind of unethical behavior. Where, there must be support for the activities of the anti-corruption units and their investigations of various individuals (no matter how powerful or popular). This is important, because in order for any kind of anti-corruption actions to be effective, means that people must be held accountable for their activities. (Farrell, 2009, pp. 203 -- 230)

How does your home country compare with the least and most ethical countries you selected? Please explain.

In the case of the United States, they are ranked 18th on the list of least corrupt countries in the world. ("CPI Report," 2010) When you compare this with the least ethical countries, it is clear that there are larger amounts of corruption that are taking place. What is happening is the U.S. is being influenced mainly by political and corporate corruption. This is different from Denmark and New Zealand, as they are not wrestling with political corruption on as large of a scale as the United States. This because, various corporate interests will often engage in unethical behavior through the actions that executives are taking with regards to: the law and the politicians they are supporting. As a result, the U.S. has to address the interconnected relationship of these two entities (which is leading to increased amounts corporate and political corruption). ("Denmark," 2011) ("New Zealand," 2011)