Page 178 - Microsoft Word - 00 P1 IW Prelims.docx

Chapter 13

The business argument

For example:

 Legal risks – most forms of corruption illegal

 Reputational risk – organisations whose practices do not meet high ethical
standards ae exposed to reputational damage e.g. VAG

 Financial costs – adds to the cost of procurement undermining business
performance

 Pressure to repeat offend – once a bribe is paid, repeat demands are possible

 Blackmail – security of staff, and other assets are put at risk

 Impact on staff – erodes staff loyalty and makes recruitment and retention of
quality personnel difficulty

 Impact on development – undermines the world’s social, economic and
environmental development

Illustrations and further practice

Now try TYU questions 5 and 6

172