Combating Corruption in International Business: Limitations of Law
Lead Research Organisation:
Middlesex University
Department Name: Business School
Abstract
In a competitive business environment, it is not unknown for international businesses, be they small, multinational or transnational to engage in corrupt practices. Bribes and kickbacks to public officials and politicians are used to obtain lucrative contracts, licences, investment incentives and tax concessions. Various studies establish that such practices harm a nation's economic wealth and contribute to poverty. Only since the 1990s has corruption been openly acknowledged as a hindrance to economic development resulting in a number of corruption related international treaties from, among others, the Organisation for Economic Co-operation and Development, the Council of Europe, and the United Nations. The purpose of the study is to extend the understanding and analysis of the current international legal framework for tackling corruption taking in to account all the regional and international treaties, and the International Chamber of Commerce guidelines on bribery and extortion. Establishing the limitations by identifying specific gaps and shortcomings in the current legal framework, the study explores in details whether corporate social responsibility (CSR), and engagement of the multinational /transnational corporations (MNCs/TNCs) with the right to development are effective and integral tools in tackling corruption. A combination of doctrinal, contextual and inter-disciplinary approach is proposed to throw light on these issues.
The focus of this research is the building of a framework for combating corruption in the international business environment that takes into account both legal and extra-legal factors. This will involve,
Critical analysis of international treaties drafted by a variety of international and regional organisations and assessment of their limitations.
In depth exploration of whether CSR could be used as an integral tool in the fight against corruption.
Critical examination of whether the emerging 'right to development', and allied economic rights, impinge on the issue of corruption and the extent to which these rights impose duties on MNCs/TNCs.
The focus of this research is the building of a framework for combating corruption in the international business environment that takes into account both legal and extra-legal factors. This will involve,
Critical analysis of international treaties drafted by a variety of international and regional organisations and assessment of their limitations.
In depth exploration of whether CSR could be used as an integral tool in the fight against corruption.
Critical examination of whether the emerging 'right to development', and allied economic rights, impinge on the issue of corruption and the extent to which these rights impose duties on MNCs/TNCs.
Organisations
People |
ORCID iD |
| Indira Carr (Principal Investigator) |
Publications
Carr I
(2014)
Petty Corruption, Development and Information Technology as an Antidote
in The Round Table
Carr I
(2009)
Investigating the Impact of Anti-Corruption Strategies on International Business: An Interim Report
in SSRN Electronic Journal
Carr I
(2010)
Combating Corruption through Employment Law and Whistleblower Protection
in Industrial Law Journal
Carr I
(2007)
Fighting Corruption Through Regional and InternationalConventions: A Satisfactory Solution?
in European Journal of Crime, Criminal Law and Criminal Justice
Carr, I
(2008)
'Corruption in Africa' Is the African Union Convention on Combating Corruption the Answer?'
in Journal of Business Law
Carr, I
(2009)
International Trade Law
Carr, I
(2011)
The Role of Non-Governmental organizations (NGOs) in Combating Corruption: Theory and Practice
in XLIV (3)Suffolk University Law Review
Carr, I
(2014)
'Fighting Financial Crime in the Global Economic Crisis'
Indira Carr (Author)
(2008)
The OECD Anti-Bribery Convention: Ten Years On
in Manchester Journal of International Economic Law
| Description | The research which was completed in 2009 found that the anti-corruption strategies including extensive legislation at both the international and national level were yet to make a meaningful impact on companies (the suppliers of bribes) and those who demanded bribes (usually public servants). Since then there have been further developments both internationally and within the UK (due to the Bribery Act 2010) which have put a lot of pressure on companies engaging in business abroad . The extent of changes in attitude can be gathered from media reports of investigation/prosecution of multinational companies (e.g. Rolls Royce, Samsung). Regardless of these news items there is still a lot to be done in terms of awareness raising, advocacy and enforcement both in developing and developed countries. It is important to engage all stakeholders including the politicians and the public servants in this process. In the absence of political will enforcement of laws is extremely difficult. We also need more empirical studies of corruption to understand which measures have been successful in lowering corruption and which measures are conducive to bringing about changes within a country without losing sight of the conditions existing in that country. The knowledge gathered thus would help policymakers and enable the adoption of bespoke best practices in other countries. Based on the research the PI has continued to research in this area by engaging with corruption-related issues such as money laundering and asset recovery. The publications from the AHRC project have been cited widely and has also made an impact on the media since the PI is regularly contacted by them (e.g.newspapers form Hong Kong, Poland, Norway) for her opinions. She has also been invited by organisations such as Transparency International and the UN to take part in round tables, meetings etc. |
| Exploitation Route | The project provides a framework for further empirical work in this area. It is hoped that there will be further extensive empirical surveys of companies in different jurisdictions and commercially sensitive sectors such as defence and extractive industries to understand how they approach corruption when investing abroad. |
| Sectors | Construction,Education,Financial Services, and Management Consultancy,Government, Democracy and Justice,Security and Diplomacy,Other |
| Description | the award holder has been approached and engaged with civil society organisations working on anti-corruption matters and given them advice on the methodologies used. Newspapers have also sought opinions on specific corruption issues from the award holder. She was also approached by the Select Committee International Development. She provided written evidence. |
| First Year Of Impact | 2008 |
| Sector | Security and Diplomacy,Other |
| Impact Types | Societal,Policy & public services |
| Description | Chr. Michelsen Institute, Bergen, Norway. |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Participants in your research or patient groups |
| Results and Impact | Information taken from Final Report I visited the Chr. Michelsen Institute in Bergen to meet researchers working in the area of corruption also gave a paper on the limitations of law to combat corruption, draft of a paper on which I was working on for future publication. |
| Year(s) Of Engagement Activity | 2007 |
| Description | Corruption and Business Integrity, International Management Institute, New Delhi, India. |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Primary Audience | Postgraduate students |
| Results and Impact | Information taken from Final Report This presentation took place at the International Management Institute in New Delhi, India |
| Year(s) Of Engagement Activity | 2008 |
| Description | Corruption in International business Research Project |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Primary Audience | |
| Results and Impact | Seminar to the International Law Group, Oxford Brookes University |
| Year(s) Of Engagement Activity | 2008 |
| Description | Corruption: Legal Solutions and Limits of Law (SEMINAR) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Primary Audience | Participants in your research or patient groups |
| Results and Impact | Seminar at the University of New England, Armidale, Australi under their Kirby Seminar Series. Seminar took place on 17 August 2007. |
| Year(s) Of Engagement Activity | 2007 |
| Description | The corruption project including the role of specialised anti-corruption commissions, University of Auckland. |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | |
| Results and Impact | Information taken from Final Report The talk given at the University of Auckland was covered by journalists and a news item titled 'Hang on to the SFO says visiting corruption expert' was published in the New Zealand Herald ( the national daily), the Business Exchange Business Week and Scoo |
| Year(s) Of Engagement Activity | 2008 |