Corruption, Corporations & Governments

When corporate funds grease the wheels of politics, corporate exploits go largely unchecked Corruption and the private sector review[edit] One paper discusses some of the issues that arise in the relationship between private sector and corruption. The findings can be summarized as follows: They present evidence that corruption induces informality by acting as a barrier to entry into the formal sector. Firms that are forced to go underground operate at a smaller scale and are less productive. Corruption also affects the growth of firms in the private sector. This result seems to be independent of the size of the firm. A channel through which corruption may affect the growth prospects of firms is through its negative impact on product innovation. SMEs pay higher bribes as percentage of revenue compared with large companies and bribery seems to be the main form of corruption affecting SMEs. Bribery is not the only form of corruption affecting large firms. Embezzlement by a company’s own employees, corporate fraud, and insider trading can be very damaging to enterprises too. There is evidence that the private sector has as much responsibility in generating corruption as the public sector. Particular situations such as state capture can be very damaging for the economy. Corruption is a symptom of poor governance. Governance can only be improved via coordinated efforts among governments, businesses, civil society, the working class create their wealth, the working class suffer, as a result and get no protection for disclosing when its covered up. it has to stop