Abstract
Corruption is defined as private individuals or enterprises who misuse public resources for private power and/or political gains. They do so through abusing public officials whose behavior deviates from the formal government rules of conduct. Ethical behavior is defined as individuals or enterprises adhering to a non-corrupt work or business practice. A review of the academic literature is conducted drawing on perspectives from the political, economic, and anthropological sciences. Insights from a Danish research program are reported on. This program identifies five different actions for dealing with corruption: (1) no action; (2) withdrawals from markets; (3) decentralized decision-making process; (4) establishment of an anti-corruption code; and (5) mutual commitment through integrity pact. The following aspects of ethical behavior should be regulated through an anti-corruption code: the company vis-à-vis political parties; gifts and entertainment expenses; political campaign contributions; and policy against small-scale corruption. Directions for future research are considered including the role of international organizations and multinational companies in fighting corruption and fostering ethical behavior; the role of countries and their governments; and the management systems.
Similar content being viewed by others
References
Altman, B. W.: 1998, 'Transformed corporate community relations: a management tool for achieving corporate citizenship', Business and Society Review 102/103, 43–51.
Amundsen, I.: 1999, 'Political corruption: an introduction to the issues', Working Paper 99:7, Chr. Michelsen Institute, Bergen.
Andvig, J.: 1995, 'Corruption in the North Sea oil industry', Crime, Law and Social Change 23, 289–313.
Andvig, J. C. and Fjeldstad, O.-H.: 2001, Corruption: A Review of Contemporary Research (Norsk Utenrikspolitisk Institut, Oslo).
Arias, J. T. G.: 1998, 'A relationship marketing approach to guanxi', European Journal of Marketing 32(1/2), 145–156.
Bratton, M. and N. van de Walle: 1994, 'Neopatrimonial regimes and political transitions in Africa', World Politics 46(4), pp. 453–489.
Carroll, A. B.: 1979, 'A three-dimensional conceptual model of corporate performance', Academy of Management Review 4(4), 497–505.
Carroll, A. B.: 1998, 'The four faces of corporate citizenship', Business and Society Review 100/101, 1–7.
Chabal, P. and J.-P. Daloz: 1999, Africa Works: Disorder as Political Instrument (Indiana University Press, Bloomington, Indiana).
Confederation of Danish Industries: 2002, Undgå korruption-en guide for virksomheder, Copenhagen.
de Sardan, O.: 1996, 'L'économie morale de la corruption en Afrique', Politique Africaine 63, (October), 97–116.
Diamond, L. and M. F. Plattner: 1993, The Global Resurgence of Democracy (Johns Hopkins University Press, Baltimore, Virginia).
Doig, A. and Theobald, R.: 2000, Corruption and Democratisation (Frank Cass, London).
Ekpo, M. U.: 1979, 'Gift-giving and Bureaucratic Corruption in Nigeria', in Ekpo, M. U. (ed.), Bureaucratic Corruption in Sub-Saharan Africa: Toward a Search for Causes and Consequences (University Press of America, Washington, DC).
Ferrell, O. C., J. Fraedrich and L. Ferrell: 2002, Business Ethics: Ethical Decision Making and Cases (Houghton Mifflin Company, Boston, Massachusetts).
Fjeldstad, O.-H. and J. Semboja: 2000, 'Dilemmas of fiscal decentralisation: A study of local government taxation in Tanzania', Forum for Development Studies, No. 1, 7–41.
Friedrich, C. J.: 1989, 'Corruption concepts in historical perspective', in Heidenheimer, A. J., M. Johnston and V. T. LeVine (eds.), Political Corruption: A Handbook (Transaction Publishers, New Brunswick, New Jersey).
Girling, J.: 1997, Corruption, Capitalism and Democracy (Routledge, London).
Givskov, K.: 2002, 'Briterne i spidsen med regler mod korruption', Dagbladet Børsen, 23 July, 11.
Goldsmith, A. A.: 1999, 'Slapping the grapping hand: Correlates of political corruption in emerging markets', American Journal of Economics and Sociology 58(4), 866–883.
Heidenheimer, A. J., M. Johnston and V. T. LeVine: 1989, Political Corruption: A Handbook (Transaction Publishers, New Brunswick, New Jersey).
Hope, K. R.: 2000, 'Corruption and Development in Africa', in Hope, K. R. and B. C. Chikulu (eds.), Corruption and Development in Africa: Lessons from Country Case-Studiest (St. Martin's Press, New York).
Huntington, S. P.: 1968, Political Order in Changing Societies (Yale University Press, New Haven, Connecticut).
Johnston, M.: 1997, 'What can be done about entrenched corruption?' Paper presented at the Nineth Annual Bank Conference on Dvelopment Economics, 30 April-1 May (World Bank, Washington DC).
Khan, M. H.: 1996, 'A typology of corrupt transactions in developing countries', IDS Bulletin: Liberalization and the New Corruption 27(2), 12–21.
Laufer, W. S.: 1996, 'Integrity, diligence and the limits of good corporate citizenship', American Business Law Journal 34(2), 157–181.
Maignan, I. and O. C. Ferrell,: 1998, 'Definition and operationalization of corporate citizenship: A cross-cultural approach', Paper presented at the Marketing Exchange Colloquium (American Marketing Association, Vienna).
Médard, J.-F.: 1998, 'Postface', in Briquet, J.-L. and F. Sawicki, (eds.), Le clientélisme politique dans les sociétés contemporaines (Presses Universitaires de France, Paris), p. 307–316.
Moody-Stuart, G.: 1997, Grand Corruption (WorldView Publishing, Oxford).
Murray, D.: 1997, Ethics in Organizations: Values-Codes-Vision-Strategies-Action (Kogan Page, London).
Noonan, J. T. Jr.: 1984, Bribes, (University of California Press, Berkeley, California).
Nye, J. S.: 1967, 'Corruption and political development', American Political Science Review 61(2), 417–427.
Olsen, J. K.: 2002a, 'Virksomheder slås med bestikkelse', Dagbladet Børsen, 22 July, pp. 12–13.
Olsen, J. K.: 2002b, 'Danske firmaer må finde sig i korruption i Mellemøsten', Dagbladet Børsen, 23 July, p. 11.
Olsen, J. K.: 2002c, 'Polsk korruption plager firmaer', Dagbladet Børsen: Politik/Økonomi, 29 July, p. 13.
Pinkston, T. S. and A. B. Carroll,: 1994, 'Corporate citizenship perspectives and foreign direct investment in the US', Journal of Business Ethics, 13(2), 157–169.
Poole-Robb, S. and Bailey, A.: 2002, Risky Business: Corruption, Fraud, Terrorism & Other Threats to Global Business (Kogan Page, London).
Pope, J.: 1997, National Integrity Systems: The TI Source Book (TI and EDI, Washington DC).
Prud'homme, R.: 1995, 'The dangers of decentralization', The World Bank Research Observer 10(2), 201–220.
Quah, J. S. T.: 1999, 'Combating Corruption in South Korea and Thailand', in Schedler, A., L. Diamond,, and M. F. Plattner, (eds.), The Self-Restraining State: Power and Accountability in New Democracies (Lynne Rienner Publishers, Boulder, Colorado), pp. 245–256.
Shleifer, A. and Vishny, R. W.: 1993, 'Corruption', The Quarterly Journal of Economics 108(3), 599–617.
The Economist: 2001, 'Rotten eggs unbroken: Turkey and corruption', 3 November.
The Economist: 2002, 'Is there less than before? Italy and corruption', 16 February.
The Economist: 2002, 'The Mittal way: political donations', 23 February.
The Economist: 2002, 'Too much of it: corruption in Germany', 6 April.
The Economist: 2002a, 'The view from the slums: Kenyan corruption', 29 June.
The Economist: 2002b, 'Slush money: OPEC and Russian oil', 29 June.
The Economist: 2002, 'On down, just 70 or so to go: Montesinos on trial', 6 July.
The Economist: 2002, 'Waiting for the fat man to sing: corruption in Latin America', 24 August.
The Economist: 2002, 'Grab and smash', 14 September 2002.
The Economist: 2002, 'Small place, big wave: corruption in Lesotho', 21 September.
The Economist: 2002, 'Measuring corruption: Angola', 26 October.
The Economist: 2002, 'Will the owners please stand up: shareholder activism', 2 November.
The Economist: 2002, 'Who killed the fly? Corruption in Mozambique', 23 November.
The Economist: 2003, 'Holier than thou', 8 February.
Transparency International: 2001, The 2001 Corruption Perceptions Index, http://www.transparency.org/cpi/ 2001/cpi2001.html.
Transparency International: 2002, Background Paper to the 2Corruption Perceptions Index: Framework Document 2002, http://www.transparency.org/cpi/2002/dnld/ cpi2002.methodology.pdf.
Treisman, D.: 2000, 'The causes of corruption: A cross national study', Journal of Public Economics 76(3), 399–457.
Williams, R.: 1999, 'New concepts for old', Third World Quarterly 20(3), 503–513.
World Bank: 2002, World Development Report: Building Institutions for Markets (Oxford University Press, New York).
Wunsch, J. S. and D. Olowu,: 1990, The Failure of the Centralized State: Institutions and Self-Governance in Africa (Westview Press, Boulder, Colorado).
Yang, M. M.-H.: 1989, 'The gift economy and state power in China', Society for Comparative Study of Society and History 31(1), 25–54.
Yang, M. M.-H.: 1994, Gifts, Favours and Banquets: The Art of Social Relationships in China (Cornell University Press, Ithaca, New York).
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Lindgreen, A. Corruption and Unethical Behavior: Report on a Set of Danish Guidelines. Journal of Business Ethics 51, 31–39 (2004). https://doi.org/10.1023/B:BUSI.0000032388.68389.60
Issue Date:
DOI: https://doi.org/10.1023/B:BUSI.0000032388.68389.60