Question

1.What is Corporate Corruption?How we can prevent Corporate Corruption?Explain it Briefly with examples. (Atleast 300 words).

Answer 1

Defining Corruption

Corruption in general sense can be defined as an act of misuse of some power for some sort of personal gain. In the same manner, corporate corruption can be defined as the misuse of power or authority by any corporate personnel for his/ her own personal gain or personal interest can be defined as corporate corruption.

For example, an employee at higher authority in a big corporation who uses his authority to give a contract to a specific person and get receive a monetary or non-monetary gain on her own personal account.

Ways to prevent Corporate Corruption:

With a rapid increase in a wide variety of cases of corporate corruption. There is a need a high need to find ways to prevent corporate corruption. Let's discuss a few of them,

Segregation of duties - This one form of process control where the authority to take important decisions that include a considerable amount of resources are segregated among different employees at the different/ same hierarchy. In other words, a single valuable asset or decision is never under the control of a single person. This helps in handling corruption within corporations.

Internal Control - Just like segregation of control, various other controls are applied within the organization to handle corporate corruption issues. Some of the internal control most commonly used are documentation, defined process flows, payment approvals, purchase order systems, reconciliations etc.

Disclosure of Interest - Various organizations opt for a disclosure of interest policy where all the employees and concerned persons are required to disclose their personal interest in any of the forthcoming decision or contract. In case there is any defined interest, in such cases, there will be no voting rights for that person which can affect the decision.

Related party transaction - Employees are discouraged to enter into transactions or contracts with related parties such as family members, partners etc. because that might affect the independence of the business decision and turn it into a biased one.

Rest assured that all the above material 100% plagiarism free and written based on experience. I hope like the answer :)