SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Study: Corporate Bribery and Corruption Grease the Gears of Global Capitalism
The Organization for Economic Cooperation and Development reports that large multinational corporations, led by top managers, are behind majority of documented bribery cases
Dec 02, 2014
Large multinational corporations are behind the majority of documented bribes worldwide, with most payers and takers hailing from rich nations, according to a study released Tuesday by the 34-nation Organization for Economic Cooperation and Development (OECD).
The report, which evaluated data obtained from 427 bribery offense cases spanning the past 15 years, found that 57 percent of all bribes examined involved corporate efforts to obtain public contracts--mostly in western, more developed states. Customs and defense officials accounted for a significant proportion of bribe recipients, at 11% and 6% respectively.
According to the study, the average bribe amounts to 10.9% of the total value of the transaction, with the average payout calculated at nearly $14 million for the cases reviewed.
Regarding the impact such bribery is having on business and governance, the report states: "The true social cost of corruption cannot be measured by the amount of bribes paid or even the amount of state property stolen. Rather, it is the loss of output due to the misallocation of resources, distortions of incentives and other inefficiencies caused by corruption that represent its real cost to society."
When it comes to corporate bribes, the analysis found that these instances are generally not committed by lone low-ranking individuals. According to the report, 53 percent of known bribery cases directly involved high-level corporate managers or CEOs. "Most international bribes are paid by large companies, usually with the knowledge of senior management," the study states.
Almost two-thirds of bribery cases occurred in just four sectors, the report revealed. The highest proportion of bribes occur in the extractive industries--such as fossil fuels and other mining activities-- and account for 19 percent of all bribery cases. This was followed by the construction, transportation and storage, and information and communication sectors.
However, the report states that, due to the complex and secretive nature of global corruption, its findings are just "the tip of the iceberg."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Sarah Lazare
Sarah Lazare is the editor of Workday Magazine and a contributing editor for In These Times. She is a former Staff Writer at Common Dreams. She comes from a background in independent journalism for publications including The Intercept, The Nation, and Tom Dispatch.
Large multinational corporations are behind the majority of documented bribes worldwide, with most payers and takers hailing from rich nations, according to a study released Tuesday by the 34-nation Organization for Economic Cooperation and Development (OECD).
The report, which evaluated data obtained from 427 bribery offense cases spanning the past 15 years, found that 57 percent of all bribes examined involved corporate efforts to obtain public contracts--mostly in western, more developed states. Customs and defense officials accounted for a significant proportion of bribe recipients, at 11% and 6% respectively.
According to the study, the average bribe amounts to 10.9% of the total value of the transaction, with the average payout calculated at nearly $14 million for the cases reviewed.
Regarding the impact such bribery is having on business and governance, the report states: "The true social cost of corruption cannot be measured by the amount of bribes paid or even the amount of state property stolen. Rather, it is the loss of output due to the misallocation of resources, distortions of incentives and other inefficiencies caused by corruption that represent its real cost to society."
When it comes to corporate bribes, the analysis found that these instances are generally not committed by lone low-ranking individuals. According to the report, 53 percent of known bribery cases directly involved high-level corporate managers or CEOs. "Most international bribes are paid by large companies, usually with the knowledge of senior management," the study states.
Almost two-thirds of bribery cases occurred in just four sectors, the report revealed. The highest proportion of bribes occur in the extractive industries--such as fossil fuels and other mining activities-- and account for 19 percent of all bribery cases. This was followed by the construction, transportation and storage, and information and communication sectors.
However, the report states that, due to the complex and secretive nature of global corruption, its findings are just "the tip of the iceberg."
Sarah Lazare
Sarah Lazare is the editor of Workday Magazine and a contributing editor for In These Times. She is a former Staff Writer at Common Dreams. She comes from a background in independent journalism for publications including The Intercept, The Nation, and Tom Dispatch.
Large multinational corporations are behind the majority of documented bribes worldwide, with most payers and takers hailing from rich nations, according to a study released Tuesday by the 34-nation Organization for Economic Cooperation and Development (OECD).
The report, which evaluated data obtained from 427 bribery offense cases spanning the past 15 years, found that 57 percent of all bribes examined involved corporate efforts to obtain public contracts--mostly in western, more developed states. Customs and defense officials accounted for a significant proportion of bribe recipients, at 11% and 6% respectively.
According to the study, the average bribe amounts to 10.9% of the total value of the transaction, with the average payout calculated at nearly $14 million for the cases reviewed.
Regarding the impact such bribery is having on business and governance, the report states: "The true social cost of corruption cannot be measured by the amount of bribes paid or even the amount of state property stolen. Rather, it is the loss of output due to the misallocation of resources, distortions of incentives and other inefficiencies caused by corruption that represent its real cost to society."
When it comes to corporate bribes, the analysis found that these instances are generally not committed by lone low-ranking individuals. According to the report, 53 percent of known bribery cases directly involved high-level corporate managers or CEOs. "Most international bribes are paid by large companies, usually with the knowledge of senior management," the study states.
Almost two-thirds of bribery cases occurred in just four sectors, the report revealed. The highest proportion of bribes occur in the extractive industries--such as fossil fuels and other mining activities-- and account for 19 percent of all bribery cases. This was followed by the construction, transportation and storage, and information and communication sectors.
However, the report states that, due to the complex and secretive nature of global corruption, its findings are just "the tip of the iceberg."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy