Kenya's Corruption Chief Faces Backlash share Print Kenya's anti-corruption czar began his tenure amidst high hopes he would break Kenya's endemic culture of graft.
Corruption can take many forms that can include graft, bribery, embezzlement and extortion. Its existence reduces business credibility and profits when professionals misuse their positions for personal gain. Inefficiency When resources are tampered with and used improperly, the efficiency of a business suffers.
Insufficient resources are available to effectively run the business and maintain its levels of operations. When the news about corrupt business professionals breaks, customers lose respect and trust, requiring company officials to spend valuable time and resources to monitor the fallout and reassure clients the company is still viable.
Legal fees, penalties and public relations efforts reroute important resources form the core business and lead to an inefficient use of company funds and personnel.
Lost Resources In addition to the inefficient use of resources, corruption can have a number of other economic impacts on business.
The cost of increasing employee ranks in addition to any embezzlement that is going on is passed on to consumers in the form of higher prices.
Prices also can be inflated when corruption takes place outside a company in the form of corrupt government officials who take bribes. Consumers pay the costs of vendor corruption when purchasing agents require payoffs, or when vendors skim profits and raise prices to cover their illegal activities.
Weakened Development Investors are skeptical of doing business with companies and municipalities that are known for corruption.
Whether you are seeking investment to grow your firm or you sell investments for a living, you will have a much harder time finding willing investors when bribes or in-kind favors are required, or your business has a history of corruption within its ranks.
Due diligence is defeated when the facts change according to the current levels of corruption. Practical investors steer clear of businesses with a corrupt history. Increases Crime The results of corruption in business add to the burgeoning roles of crime-fighting government agencies, police departments and internal investigators.
The trickledown effect of corruption usually ends up feeding black market interests, and may even support the efforts of organized crime as the activities infiltrate various business levels.
Corruption begets continued criminal activity when it goes undetected. The effects of corruption in emerging third world countries is evident and widespread, but even in America, where competition and greed can outweigh the good of society, corruption fuels the growth of criminal enterprises and eventually affects the society in which the business operates.Although not the original usage of the term, graft in the modern context is commonly, but mistakenly, used as a blanket term for political embezzlement, influence peddling, or other forms of corruption.
Political corruption and scandals have been recurring themes throughout American history. From Samuel Argall's plundering of the Virginia Company in the early seventeenth century to the Credit Mobilier, Watergate, and countless lesser scandals, each generation of Americans has had its share of public officials who were charged with abusing their positions in the pursuit of money, power, or both.
The author says corruption has become a political problem in Ghana under conditions of varying circumstances of time, place and prevailing norms and identifies the following causes of corruption: traditional contexts and the effects of colonialism; the "new men" in the conquest of political power; and bureaucratic transitions and growth of corruption.
Graft usually implies the existence of theft, corruption, fraud, and the lack of integrity that is expected in any transaction involving a public official.
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Economic corruption is an important form of corruption; however, it is not the only form of corruption. There are non-economic forms of corruption, including many types of police corruption, judicial corruption, political corruption, academic corruption, and so on.
Technically, corruption covers an entire host of abuses, of which graft is one. Graft and corruption are charges that are typically leveled at highly-placed government officials, who are able to use public funds to improve their own fortunes due to increased access, influence, knowledge or power that comes with an elevated position.
An official engaging in bribery, nepotism, embezzlement.