The Power Corruption Cycle

Corruption and Its Prevention

Corruption causes a hindrance to the growth of an organization , and hence , the skilful managers must remain ethical while solving organizational problems , and devising innovative strategies for economic development

According to Transparency International , corruption is defined as misuse of entrusted power for private gain ' Further the noted organization mentions that it can occur in two ways

the corporation permits acceptance of a bribe for facilitating payments

the bribe receiver gives services , which are prohibited by the corporation

However , it is clear that whether the bribe

is accepted directly , or indirectly , corruption is encouraging the acceptance of bribe for gaining an advantage over other business competitors . It is detrimental to economic development , product quality , timeliness of delivery , and eventually , it leads to introduction of inferior products and services to the consumers . Hence , it becomes essential for responsible managers to perform their duties professionally as well as ethically . Like any other societal problem , corruption can be prevented when the managers are made accountable for their actions . There needs to be a regular vigilance system that monitors their role in business dealings with the trading partners , and keeps a track record of their personal assets like house , cars , and suspicious possessions that may be too expensive for the managers . But if the managers misuse their power , and indulge in corrupt practices , they can destroy the entire economy . I shall explain it with an example of the ongoing recession that was caused by the mortgage crisis . Mayko (2008 ) reported that...