However, corruption has also attracted much attention from other social sciences, particularly from political scientists, and more recently from anthropologists and sociologists. In order to understand corruption, one cannot overlook the importance of political factors. Originally, it was thought that corruption was due to deficiencies in the political system, and particularly in the “democratic deficit”. It was viewed that corruption was caused by a political system that was lacking democratic checks and balances, accountability and transparency. The relationship between corruption and democracy is fundamentally understood as the less democracy there is, the more rampart corruption is.
Nowadays, news about political corruption is a prevalent thing. Whether it talks about a politician who won the election but failed to act upon his obligations, an anonymous executive who declared ghost establishments to support his “distributed” funds, or a simple employee who embezzled a huge amount of money for his own wealth, each has its own face of corruption. Face it or not, we cannot deny the fact that everyone can commit corruption – from the most underprivileged individuals to the most fortunate ones. But, how well do you define “Corruption”? Admittedly, not all people understand what corruption means because there are some who thinks that it is just a mere way of stealing the monetary resources of the state, while only few understands that it is not simply about money but it scopes everything unethical an official does with the use of his power and authority.
It is important to distinguish between the two methods of corruption of the judiciary: the government (through budget planning and various privileges), and the private Judicial corruption can be difficult to completely eradicate, even in developed countries. Corruption in judiciary also involves the government in power using judicial arm of government to oppress the opposition parties in the detriments of the state. The judicial focus has often propitiated that literature uses interchangeably the terms fraud and corporate corruption and that the analyzed cases of corruption inside organizations (corporate corruption) have been mainly associated with criminal practices (Beasley et. al., 2002), neglecting the analysis of those legal but unethical corporation practices. It is largely suggested that fraudulent and illegal
The word corruption is defined in various ways. The World Bank defines corruption as “the single most noteworthy impediment to financial and social advancement” (Petrevska, Petrevska, & Ristić, 2014). Another definition that is provided by other researchers regarding the word is the untrustworthy conduct by those in positions of force, for example, supervisors or government authorities. Corruption can incorporate giving or tolerating rewards or wrong blessings, misleading, under-the-table exchanges, manipulating elections, redirecting funds, laundering cash and defrauding speculators. One sample of corruption in the realm of money would be a venture supervisor who is really running a misleading plan (Dreher, & Schneider, 2010).
Occupational fraud can be done through various forms, some of which are: corruption, asset misappropriation bribery, illegal deals, tampering with payrolls, cash billings, inventory, financial statements. External fraud happens when a company falls victim to a dishonest vendor or customer, through various schemes such as billing the company for unprovided services or soliciting bribes from employees. ACFE (Association of Certified Fraud Examiners) The ACFE (Association of Certified Fraud Examiners) is the world's largest anti-fraud organization and premier provider of anti-fraud training and education, reducing business fraud worldwide and inspiring public confidence in the integrity and objectivity within the
To demonstrate how democracy reduces corruption, firstly the tool using to indicate the amount of corruption is needed. Corruption as the act of the abuse of power for self-interests or to obtain a personal benefit is hard to be precisely counted. The estimation of corruption cannot be done by simply counting the time of corrupt activities.
So no Country is free from the vice of corruption. Corruption travels from one end of a country to another in the company of those who know how to buy what they want with the power of money, whether it is a business deal or a lucrative job they wish to grab. It spirals downward. We can see corrupt practices even in developing countries as well as developed countries. History is replete with examples of widespread corruption in the developing countries as well as in the advanced countries like America, U.K, and France.
Corruption is one of the world’s largest obstacles to economic development and growth. Research shows that bribery no doubt have grim opposing effects on economic growth, inequality and poverty and on the allocation of public spending on education, health and infrastructure. Corruption is often defined as the manipulation of public power for private benefit. It applies to any transaction between the public and the private sectors where public goods illegally are transformed into private benefits. ACC key provision against corruption applies to both public and private sectors and states: «Any person who a) for himself or other persons, requests or receives an improper advantage or accepts an offer of an improper advantage in connection with a position, office or assignment, or b) gives or offers anyone an improper advantage in connection with a position, office or assignment, shall be liable to a penalty for corruption».
One of the macro-economic effects of corruption is ability to disrupt economic stability. For example, there are allegations of bribery being the main determinant of awarding government contracts. The effect of such practices is instability in government operations where there are changes in leadership. For example, due to the greed that accompanies corruption and the desire to have a share of the bribery, new administrations often highlight the failings of past administrations and therefore create instability in procurement. Therefore, the tendering process is prone susceptible to changes in leadership because of corruption.
Corruption is a complex social, political and economic phenomenon that affects all countries. In Colin Nye’s classical and most widely used definition, corruption is a “behaviour which deviates from the formal duties of a public role because of private regarding (personal, close family, private clique) pecuniary or status gains” (Nye 1967). In short, corruption is the misuse of public power for private gain. Currently the most common types of corruption are bribery, nepotism, fraud and embezzlement. It is necessary to make a distinction between administrative and political corruption.