Causes Of Corruption

Introduction: Corruption has become a worldwide problem. Every nation has some level of corruption in varied proportion. Some nations are highly corrupted while some have come a long ways into reducing the level of their existing corruption. Nonetheless, corruption cannot be completely eliminated. In any way, all types of corruption can be attributed to the manipulation of public power for private gain. In the next paragraphs, I will analyze the fundamental causes of corruption and determine the reason why corruption has been greater in countries with extensive government regulation. Also, I will assess the ethics surrounding corruption and the variation of its use across countries.

1.

The causes of corruption

- Personal Interest: Greed

Consequently, in these cultures, rationalizing becomes the way out as they defend that it must be right if everybody is engaging in it.

- Lack of transparency at the institutional level: information is obstructed making it harder for people to make informed decisions.

- Inefficiency of regulations and laws: Tight regulations that weakens the system causing people to engage in illegal corruption in an attempt to evade the rules. There is also the lack of efficient controls to tackle the matter of corruption in the areas more prone [ to corruption]. In some countries mostly the developing ones, the judicial system is simply unreliable and it becomes much harder to enforce the law in regards to corruption.

-Organizational: Often, there is no adequate control in the management system, as a result workers are not held accountable for certain actions. Lack of promotion in some organization lead the workforce to seek for alternative promotional favors by corrupted means. Corruption becomes accentuated when no one is willing to take the steps to denounce the wrongful act.

The reasons why corruption has been greater in countries with extensive government

It is clear from these countries that lack of transparency can lead to increased corruption. “In identifying the most important providers of international financial secrecy, the Financial Secrecy Index reveals that traditional stereotypes of tax havens are misconceived. The world’s most important providers of financial secrecy harboring looted assets are mostly not small, palm-fringed islands as many suppose, but some of the world’s biggest and wealthiest countries. Rich OECD member countries and their satellites are the main recipients of or conduits for these illicit flows” (Tax Justice Network). Over the years, the U.S. financial system alike with most developed countries has become immensely corrupt as many institutions and wealthy people continue to divert assets into tax heavens to escape tax and business regulations. Many industries in the financial, pharmaceutical industries have sought ways to flee from these tight regulations, making them to fall victim of corrupt practices. The panama paper is a prime example that can illustrate this scheme. “A global industry has developed involving the world 's biggest banks, law practices, accounting firms and specialist providers who design and market secretive offshore structures for their tax-