Bribery – an obstacle to international development
| Published date | 02 July 2019 |
| Date | 02 July 2019 |
| Pages | 746-752 |
| DOI | https://doi.org/10.1108/JFC-08-2018-0080 |
| Author | Fabian Maximilian Johannes Teichmann |
| Subject Matter | Financial risk/company failure,Financial crime |
Bribery –an obstacle to
international development
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –Bribery continues to significantlyinhibit international development. Despite massive efforts to
fight corruption, public officials in many developing countries continue to demand bribes. However,
multinationalcorporations face severe sanctions for engagingin bribery. Hence, this paper aims to investigate
whetheranti-bribery incentives could help to eliminatecorruption.
Design/methodology/approach –This study takes an innovative approach toward eliminating
corruption: it investigatesthe potential role of anti-bribery incentives through qualitativecontent analysis of
35 semi-standardized interviews with anti-bribery experts from Austria, Germany, Liechtenstein and
Switzerland.
Findings –Concrete recommendations for adjustments to incentive systems are provided in an effort to
help multinationalcorporations fight bribery, and thereby,eliminate obstacles to internationaldevelopment.
Originality/value –Although the empirical findings are based on conditions Austria, Germany,
Liechtensteinand Switzerland, the results have potential global application.
Keywords Corruption, Incentives, Bribery
Paper type Research paper
1. Introduction
Two decades ago, corruption was still commonly accepted in most areas of the world
(D’Souza, 2012, p. 74). However, the negative implications of bribery include inefficient use
of resources, unfair redistributionof income and secessionist responses (Levin and Satarov,
2000, p. 114f; Argandoña, 2007,p.482;Collier, 2002, p. 6). Frustration with the resulting
inequality, unstable sociopolitical situations and a lack of contentment among private
citizens are just some of the potential obstaclesto international development (Anderson and
Tverdova, 2003,p.104;Mo, 2001,p.67;Kim, 1999, p. 249). In addition, as bribery requires
secrecy, it makes the enforcement of agreements very difficult, thereby arguably
constituting a significant barrier to foreign direct investment (Mauro, 1997,p.6;Bardhan,
1997, p. 1320; Mauro, 1996, p. 86; Bray, 2005, p. 120).Due to its many negative impacts on a
country’s development,many states have outlawed bribery (Li et al.,2000,p.156;Kaufmann
et al., 1999, p. 3). However, bribery continues to pose a significant obstacle to international
development.
This article will help to develop innovative solutions in the fight against bribery. In
particular, the concept of anti-bribery incentives will be investigated, adopting an agency
theory approach. Practical solutions for multinational corporations, which could also be
applied in the public sector,will be developed.
2. Literature review
This study will use an amalgamation of bribery definitions from the OECD’s Anti-Bribery
Convention and Transparency International’s Corruption Perceptions Index, treating as
bribery:
JFC
26,3
746
Journalof Financial Crime
Vol.26 No. 3, 2019
pp. 746-752
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-08-2018-0080
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