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Journal of Business Ethics

, Volume 87, Supplement 1, pp 319–332 | Cite as

Corporation as a Crucial Ally Against Corruption

  • Reyes Calderón
  • José Luis Álvarez-Arce
  • Silvia Mayoral
Article

Abstract

Manuscript type Empirical. Research question/issue This paper aims to contribute to an improved theoretical and empirical understanding of the role that corporation has to play in anticorruption efforts. Research findings/insights Using cross-country data from three databases (Bribe Payers Index, Corruption Perceptions Index, and Doing Business) we found that pro-bribery Investment Climate conditions in host countries are not related to the payments of bribes by multinational companies when these corporations operate abroad. Theoretical/academic implications After describing the conceptual and policy framework that surrounds the discussion on the role played by firms in anticorruption, we present the current debate regarding the effectiveness of international bribery control instruments, with the World Bank-GAC (2006–2008) report as a basis. Both literature and policy seem to be divided into two main, although not mutually exclusive, positions: one demands improvements in Investment Climate conditions from a joint public–private consensus led by international agencies; the other one supports the effectiveness of self-regulation by firms, independent of Investment Climate improvements. The study provides empirical support to the idea that a better Investment Climate is not enough for reducing corruption. Practitioner/policy implications This study offers insights to policy makers interested in promoting the involvement of corporations in the fight against corruption.

Keywords

Bribe Payers Index corporation corruption Corruption Perceived Index doing business investment climate World Bank Governance and Anticorruption report 

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Notes

Acknowledgments

We thank Antonio Argandoña, Isabel Rodríguez Tejedo, Prakash Sethi, and especially two anonymous referees for their comments, which have greatly helped to improve the paper; WBG authorities; and Luis Orgaz from the Spanish Ministry of Economy for his hospitality during the 2006 IMF/World Bank Group Annual Meeting and the participation in the WBG-GAC report’s development. We are grateful for the support received from the PIUNA program of the University of Navarra.

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Copyright information

© Springer Science+Business Media B.V. 2008

Authors and Affiliations

  • Reyes Calderón
    • 1
  • José Luis Álvarez-Arce
    • 1
  • Silvia Mayoral
    • 1
  1. 1.School of Economics and Business AdministrationUniversity of NavarraPamplonaSpain

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