Op-Ed: How to put an end to business corruption

by: Leslie Rodriguez

We now live in a globalized world. This, along with income inequality and the fact that
companies are bigger has led to a spread in corruption in the modern world. In 2001,
Transparency Internationals Corruption Perceptions Index ranked the United States as the 16th
least-corrupt country (Porter, 2012). By last year, the nation had fallen to 24th place. One of the
main sectors affected by this issue is the private sector, especially since it is the one that moves
the most money around. This problem is really relevant because it affects everyone and it
prevents the country from succeeding and progressing, and since it is such a controversial issue it
should be taken into consideration in order for us to get better and succeed as a country.
Corruption is not only an immoral thing to do, but
it is also illegal and it diminishes economic and
social development all around the world and in
the US. It leads to weak governance and
empowers organized criminal networks. In
addition, it facilitates human rights abuses,
hinders economic growth, and diverts much
needed resources from health, education, or
disaster relief efforts. Corruption also annihilates
employment opportunities, discourages foreign
investment, and decimates small businesses. All
of this could be prevented by stopping corruption,
but this is no easy task. Most of the people that
engage in such actions often are not aware of the
consequences, due to the fact that the majority of
the time people tend to get away with it. It is true,
when done in secret these actions could have some good extra benefits but when the wrongdoing
goes public it tends to unleash a series of consequences for the person involved in these
practices.
There are several solutions that could be implemented in order to help put an end to corrupt
practices in the business sector. These solutions vary from some simple company anti-corruption
policies that are trying to work from the inside to change peoples minds and change their
perception of corruption in order to stop it. To the strengthening of transparency and
implementation of anti-corruption laws that are actually enforced in order to completely
eradicate it.
Auditors are supposed to be people that will look out for suspicious actions, and they are
responsible for detecting fraudulent financial reporting, misappropriation of assets, and
corruption. This, of course, helps to diminish corruption and some of the times if something is

noticed during the audit process, action will be taken. But often, things do not go as planned, and
this is not achieved because the people that do this job tend to be internal auditors (paid and hired
by the own company), or if they are external they are hired by another private company instead
than by the government or an independent agency. Even when Jack Ori said that, external
auditors tend to ensure compliance, provide credibility, critique internal processes, and double
check internal audit (2009). On the contrary, this external audit often leads to an incentive for
corruption to take place, because people that have the means will be tempted to bribe these
auditors in order to hide the wrongdoings, and the auditors will often agree because they will see
an extra benefit.
On the other hand, one solution that could be best suited to work on all aspects and that will fight
corruption from all angles is the implementation of the American Anti-Corruption Act. Certainly,
there are several anti corruption laws in practice right now, but there still exist many legal ways
of exchanging money for someones own benefit, so this Act wants to remove all of those legal
options that are left. The purpose of this act is to Stop political bribery by overhauling lobbying
and ethics laws, end secret money by dramatically increasing transparency, and give every voter
a voice by creating citizen-funded elections (Represent.US, 2012). It consist of 9 different laws
or rules that will help achieve their purpose. This is good because they are incorporating several
things that need to be done in one single act that will help prevent corruption in the US, and this
will probably lead other countries to follow our steps.
Now we are only missing the most
important part, passing the act.
Represent.US, which is a nonprofit
organization funded by donations
from supporters and other
philanthropic organizations, is
working on building a movement to
pass the American Anti-Corruption
Act at the city, state, and federal
level.

References

Porter, E. (2012, July 11). The Spreading Scourge of Corporate Corruption. The New
York Times, p. B1.
Represent.US. (2012, November 13). Full provisions. The American Anti-Corruption Act.
Retrieved May 5, 2015, from http://anticorruptionact.org/full-text/
Ori, J. (2009). Importance of an External Audit. Houston chronicle. Retrieved from
http://smallbusiness.chron.com/importance-external-audit-17630.html
Aid and corruption. Cartoon. n.d. Retrieved from www.cartoonstock.com
Support the Anti-Corruption Act. Poster. n.d. Retrieved from www.Represent.us