What factors leads to corruption?

What factors leads to corruption?

Causes of public sector corruption

  • Country size.
  • Country age.
  • Resource curse.
  • Political instability.
  • Wages.
  • Lack of rule of law.
  • Failure of governance.
  • Size of government.

Why would the practice of guanxi be problematic when dealing with Western countries?

The downside of guanxi is that it is often associated with corruption and can lead to dangerous reciprocal obligations and collective blindness.

What are three causes of corruption?


  • Greed of money, desires.
  • Higher levels of market and political monopolization.
  • Low levels of democracy, weak civil participation and low political transparency.
  • Higher levels of bureaucracy and inefficient administrative structures.
  • Low press freedom.
  • Low economic freedom.

What are the 3 types of corruption?

Corruption can be defined and categorized in different ways. The most common types or categories of corruption are supply versus demand corruption, grand versus petty corruption, conventional versus unconventional corruption and public versus private corruption.

How can we discourage corruption?

Report corruption

  1. expose corrupt activities and risks that may otherwise remain hidden.
  2. keep the public sector honest, transparent and accountable.
  3. helps stop dishonest practices.
  4. ensure that public sector employees act in the public interest.

What is the major flaw of guanxi?

After doing some online research in the library, I found out that there is a downside to having bad guanxi and that it can lead to poor unethical choices. It has been apparently known for corruption and bribery in business transactions (Littlefield, 2003).

How guanxi influence the business development in China?

In China, Guanxi can not only assist transnational companies to obtain sources of information and resources, including business opportunities, government policies, and scarce necessities and professionals, but also be of great value to them in terms of building up corporate reputation, enlarging market share and even …

What are the main forms of corruption?

Forms of corruption vary, but can include bribery, lobbying, extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement.

What are the most common forms of corruption?

Bribes, large or small, are the most well-recognised type of corruption, but other forms also exist. Consider nepotism or cronyism, practices where officials extend preferential treatment – such as access to jobs, or other resources and services – to their family members, or friends and associates.

How can a company prevent corruption?

8 ways to prevent corruption in your business

  1. Understand the law and other regulations.
  2. Conduct a risk assessment.
  3. Set the tone top-down.
  4. Always conduct due diligence.
  5. Keep reviewing your policy.
  6. Communicate and train.
  7. Always protect whistleblowers.
  8. Monitor and review.