Helping SMEs on how to resist corruption in business

Concept of corruption

With many countries and international organizations corruption is the abuse of entrusted power for private gain. The common forms of corruption are bribery that is defined as giving or receiving money, gift or other benefits in a dishonest and illegal manner and damages trust in business.

The United Nations Convention against Corruption (UNCAC) also provides a prohibition on acts: offering, accepting bribes, embezzlement, influence, abuse of power, illicit wealth of officers in both public and private sectors. UNCAC recommended its member nations to establish criminal to these acts though it does not require an unity in name and violation constituted signs of those.

In accordance with the Anti-corruption Law 2018, corruption means an office holder’s abuse of his/her official capacity for personal gain. Acts of corruption in public and non-state sector are well regulated including 12 acts of corruption performed by officers with position, authority in agencies, organizations and institutions in public sector. And 3 acts of corruption performed by officers with position and power in businesses, organizations in non-state sector include embezzling, taking bribes, and bribing or brokering bribery.  

Some relevant concepts:
  • Publicity and transparency in operation of the organization: means the publication, provision of information, explanation of operational apparatus, deployment of tasks, rights and responsibility in execution of the organization’s mission.
  • Bribery: means the offering, promising, givingreceiving, or solicitingof any item of value as a bribe for an illegal, unethical, or infringement of trust.  It may be gift, loans, cost, reward or other benefits (tax, service, donation …).
  • Fraud: an act of deception or an act of intentionally deceiving someone to secure an unfair or unlawful gain (financially, politically or for other benefits). States claim that these actions violate criminal or civil law.
  • Conflict of interest: is a situation in which the interest of an officer with position and power or his/her relatives affect or will improperly affect performance of his/her duties.  
  • Self-interest: refers the actions of an officer with position and power who abuse his/her position and power to elicit material or non-material benefit improperly.