Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Social Damage

  • Stephan MaretteEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_446

Definition

The social damage is a damage suffered by the society as a whole because of corruption, bad use of public money, or wrongdoing. The social damage includes the stolen assets, the wasted money that could be alternatively spent by the society, and also ethical dimensions, like moral damages or violation of trust regarding public values.

A Nascent Concept

The social damage is a damage suffered by the society as a whole and differs from the private damage that is incurred by a private entity. The possibility to pay a compensation to the victim who is the “society as a whole” recently emerged.

The social damage was directly mentioned in the settlement agreement related to corruption between Alcatel and the Costa Rica. In 2010, this French firm agrees to compensate for the damage coming from briberies and caused to citizens. Alcatel paid US$10 million for compensating this social damage. This settlement does not impede additional compensations to other victims, like private...

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References

  1. Bobkova N, Egbert H (2012) Corruption investigated in the lab: a survey of the experimental literature. MPRA paper 38163, University Library of Munich, GermanyGoogle Scholar
  2. IACC (2010) Finding the real cost of corruption: how to use the concept of social damage for the anti-corruption struggle. In: 14th international anti-corruption conference, long workshop report form, Thailand, 12 Nov 2010Google Scholar
  3. Olaya J, Attiso K, Roth A (2010) Repairing social damage out of corruption cases: opportunities and challenges as illustrated in the Alcatel case in Costa Rica, 6 Dec 2010. Available at SSRN: http://ssrn.com/abstract=1779834
  4. Shavell S (2005) Minimum asset requirements and compulsory liability insurances as solutions to the judgment-proof problem. Rand J Econ 36(1):63–77Google Scholar
  5. United Nations (2004) United Nations convention against corruption. United Nations, Office on Drugs and Crime, Vienna. Available at http://www.unodc.org/documents/treaties/UNCAC/Publications/Convention/08-50026_E.pdf

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.UMR Economie Publique INRAParisFrance