MODULE 7

Title: Advocacy Against Corruption

I. Objectives:
At the end of the period, the students should be able to:
a. Know and understand what corruption is.
b. Know the effects of corruption
c. Learn the characteristics of corruption.
d. Learn how to prevent corruption

1. Definition of corruption - RONEL

a. Corruption is the abuse of entrusted power in both the public and private sectors for
personal gain.
b. It is also defined as a misuse of entrusted power (by heritage, education, marriage,
election, appointment) for private gain.
c. It can happen in the government, business, the courts, media, civil society and across
all sectors from health, education, infrastructure, sports, etc.
d. It is often done with the connivance of professionals like bankers, accountants,
lawyers, real estate agents. It can also happen through opaque financial systems
and anonymous shell companies that enables corruption schemes to flourish and the
corrupt to launder and hide their illicit wealth.
e. Corruption may include the following behaviours:
f. Public servants demanding or taking money or favors in exchange of services.
g. Politicians misusing public money or granting public jobs or contracts to their families,
friends and sponsors.
h. Businesses bribing officials to get the lucrative deals.
i. Corruption can adapt to different contexts and varying circumstances. It can evolve in
response to changes in rules, legislation and even technology.

2. Effects of Corruption - EVAN

a. Countries that have a high level of corruption are unable to function efficiently or prosper
at an economic level, causing suffering for society as a whole.
b. Emerging market economies tend to have much higher corruption levels compared to
developed countries.
c. Corruption can lead to an uneven distribution of wealth as small businesses face unfair
competition from large companies that have established illegal connections with
government officials.
 d. In a corrupt economy, resources are inefficiently allocated and companies that otherwise
would not be qualified to win government contracts are often awarded projects as a result
of bribery or kickbacks.
e. The quality of education and healthcare also deteriorates under a corrupt economy,
leading to an overall lower standard of living for the country's citizens.
f. Many countries with emerging economies suffer from a high level of corruption that slows
their overall development. The entire society is affected as a result of the inefficient
allocation of resources, the presence of a shadow economy, and low-quality education
and healthcare.
g. Corruption makes societies worse off and lowers the living standards of most of their
populations.

3. Characteristics of Corruption - KAREN

a. Recipients and payers - Worldwide complaints are heard about politicians and public
officials who accept bribes and enrich themselves privately at the expense of the
common citizen. This may be at the expense of the employee and the employer;
consumer and producer; renter and tenant; the one applying for a permit to do
something, or asking exemption from an obligation to pay or to deliver a product or a
service. All those cases may be considered to be abuse of power and authority for one’s
own benefit.

Complainers forget that necessarily there should also be payers who benefit from that
abuse of power and authority. The other side of the coin shows payers assuming that
their ‘gift’ to a politician or a public official, may in return deliver profitable preferential
treatment or delivery.

b. Extortion - They do not only blame politicians and public officials for willingly accepting
bribes. They also often allege that those having authority in our society ask to be bribed
or give us the opportunity to bribe. This means that the question ‘who is to blame’, shifts
from the person who pays to the person who extorts and receives. Again on the ground
of the allegation: ‘There’s no escaping from it, for if you don’t pay, you are bound to fall
behind’.

In every society it is known, either publicly or furtively, which public official is open to
transactions with gifts being made reciprocally. The gift on the part of the official may
then imply considering an application with priority, or assigning a contract, scholarship or
employment. The potential payer will look for his “prey”; he will look for the
politician/public official of whom everybody knows that he can be ‘bought’, that he is
prepared to break the rules in exchange for a ‘gift’. Therefore, the reputation that a public
official or politician enjoys, is of great significance. Some will never be approached with a
‘proposition’, as the potential extortionists or bribers do know that they (those public
officials or politicians) are not open to such practices. Equally, as regards some business
enterprises, it is a known fact that they do not keep any cash for bribes. They run less
risk of falling victims to extortion.

c. Lubricant of Society - many think that paying bribes is required to ensure smoother
operation of society. They think that without an occasional gift (for example, around
Christmas and New Year), or incidentally (a gift on the occasion of a marriage or when a
child is born) for instance upon entering into a contract for the supply of a product or a
service, such contracts might be lost to them and might be assigned to others.
 For their own enterprises that would then amount to a loss, implying loss of sales
potential, which is not what any enterprise or entrepreneur works for. For entrepreneurs
who want to secure sales, those gifts are a cost item which they account for in advance
in their prices. As a consequence products and services cost unnecessarily more than is
needed from a commercial point of view, for as a matter of fact these gifts have already
been budgeted.

If corruption is judged purely on the basis of business economics, macro-economically it

costs money to society which should be considered as a loss. From the micro-economic
point of view, for the bribing entrepreneur, it is profitable. The payer of a bribe secures a
desired transaction which – if evaluated on purely commercial grounds – strictly
speaking, should have been assigned to someone else. That will harm individual
entrepreneurs and transactions; it will harm the national economy and the world
economy.

d. An ethical problem - The mere fact that both the payer and the recipient of bribes want
to keep their behavior secret (and often succeed in doing so as well) shows that such
behavior is generally considered to be improper. Many consider corruption to be an
ethical problem, a behavioral problem. And refer to it as being ‘sinful’, a ‘wrongdoing’. It
is a problem to be solved by means of personal ‘reform’

Emphasizing the ‘sinfulness’ of corruption, aims at improving especially individual and

personal behavior. Poor entrepreneurship (in a moral sense) should then be improved
on a personal basis. Our focusing on the conditions and the implications of corrupt
behavior aims rather on the entire structure of society and economy, and on the
conditions that exist within that structure to prevent and fight corrupt behavior and
safeguard integrity. Good entrepreneurship is judged with regard to its quality in all three
aspects: People, Planet and Profit. The qualification ‘poor’ is not a sign of sinfulness, but
a quality that signifies an adverse effect on all three aspects, not only on the economics.

e. Poverty reduction - The explanation that refers to individual poverty reduction is

especially given by those who have a keen eye for corruption among lower operational
staff in government service, notably lower office clerks, police officers, customs officers,
the military, teachers, admission staff in hospitals, bus ticket collectors, car-park
attendants, garbage collectors, etc., who on an operational level often have good
opportunities to extract extra income or privileges from decisions they might take of
importance to entrepreneurs and citizens. Consequently, these have a certain value.

Investigations into the effect of the level of income enjoyed by a person, however,
provide sufficient proof that this explanation is not correct. Low pay does surely not
automatically imply that, consequently, the person concerned is corrupt. What is of much
greater importance for the prevention of, or fight against, corruption at a lower level in all
kinds of hierarchies, is the clearness and transparency of the rules and of the decision-
making process, and the control exercised on the application of the rules. Timely
payment of salaries is an important pre-condition to prevent corrupt behavior.
f. Culture- Gifts are inherent to human relations and therefore present in all cultures. You
give and receive gifts on the occasion of birthdays, Santa Claus or Christmas; on the
occasion of memorable events; an appointment or a departure; marriage or a retirement.

When you receive a gift, it will also be open and visible to everyone. Corrupt payments
are made in hiding, are not made known. A gift made in public will also impose a certain
obligation upon the recipient. On a next occasion you will show your gratitude by
reciprocating the gift and you share the gift received with your family and friends. In fact,
in our everyday life it is not much different. You give and receive on birthdays, on the
occasion of marriages and births, and on other festive occasions. Look at the reciprocal
state visits of Heads of government and Heads of state, exchanging gifts.

g. Kindness among friends - It is essential, whether you just want to be ‘thoughtful’, or

whether your gift is presented with a certain intention. Is it a sign of thoughtfulness or is it
hiding a particular purpose, an expected ‘return’ in the future? Whether ‘attention’ or
‘intention’, the difference is of great importance for the relationship. Is it a ‘friendly turn’
or is it an ‘investment’?

To have friends belongs to culture. However, can you ‘buy’ a friend? Is real friendship not
to be based on honesty and transparency? To give presents reciprocally is a sign of
friendship. It should not get lost in a misuse of power for private gains.

4. Prevention of Corruption - JOM

The following are some measures businesses and organizations can adopt to help
prevent corruption:

a. Clear Business Processes

Having defined workflows, clear directives on financial approving authorities,

and standard procurement instructions can help flag irregularities in a
business or organization. These processes should be reviewed on regular
basis to ensure they are updated to the shifting business environment. Diligent
record-keeping and regular audits are also good practices to deter corrupt
activities.

b. Policy on Gifts and Entertainment

Gifts and entertainment are often offered in the legitimate business to promote
good relations. However, if it is too frequent or lavish, or done with the
deliberate intention to gain an unfair business advantage, such gifts and
entertainment can be tantamount to corruption, regardless of whether the
recipient is able to fulfil the request of the giver. The risk of corruption can be
reduced by setting a policy on when gifts and entertainment may be given and
accepted and what records need to be kept. Your business partners should be
aware of your organization’s gift and entertainment policy too.
 c. Declaration of Conflict of Interest

Conflict of interest occur when a personal interest or relationships is placed

before the business interest, and can lead to corrupt activities such as giving
or accepting bribes. In order to safeguard the business interest, a declaration
system that is applicable to all levels of employees may be instituted. The
company may provide a declaration form for conflict of interest for employees,
and then use the information to take the most appropriate course of action.
This could include excluding the employee from engaging in the work or
transferring the employee to another department or post.

d. Convenient Corruption Reporting System

The corruption reporting system is a key function to control corruption and

bribery risks, and can comprise a whistle-blowing policy or feedback channel
where staff can conveniently raise concerns and feel protected from being
identified or retaliated against. One way to do this would be by allowing
reports to be filed anonymously through a publicized email address or phone
number.

Lecture: Advocacy Against Corruption - JOM

Introduction:

Today, we delve into a topic that affects societies, economies, and the fabric of governance
worldwide: corruption. Corruption, in its many forms, undermines trust in institutions, distorts
economic development, and erodes the principles of fairness and justice. As advocates against
corruption, it falls upon us to understand its nuances, its impacts, and most importantly, the
strategies we can employ to combat it.
Understanding Corruption:
Corruption comes in various forms, ranging from bribery and embezzlement to nepotism and
cronyism. It thrives in environments where transparency is lacking and accountability is weak.
Let's briefly explore some common types of corruption:
Bribery:
The offering, giving, receiving, or soliciting of something of value to influence the actions
of an official or other person in a position of power.
Embezzlement:
The misappropriation or theft of funds or assets entrusted to one's care.
Nepotism:
Favoritism shown to relatives or close associates, often in granting jobs or contracts.
Kickbacks:
Illicit payments made to secure favorable treatment or contracts.
Political Corruption:
Manipulation of policies, institutions, and rules of procedure in the allocation of resources
and financing by political decision-makers.
Impacts of Corruption:
The consequences of corruption are far-reaching and detrimental to societies and
economies:

Economic Drain:
Misallocation of resources, reduced foreign investment, and stifled economic growth.
Social Injustice:
Unequal access to basic services such as healthcare and education, perpetuating cycles
of poverty.
Undermined Trust:
Deterioration of public trust in institutions and the rule of law.
Inequality:
Widening gap between the wealthy elite and the rest of society.
Strategies for Advocacy:
As advocates against corruption, we play a crucial role in holding institutions
accountable and promoting transparency. Here are some strategies for effective advocacy:

Raising Awareness:
Educate the public about the impacts of corruption on society. Use media campaigns,
workshops, and educational programs to inform and empower citizens.
Promoting Transparency:
Advocate for laws and regulations that require transparency in government activities.
Support the implementation of open data initiatives and whistleblower protection laws.

Strengthening Institutions:
Push for the establishment and enforcement of strong anti-corruption laws. Advocate for
the independence and effectiveness of anti-corruption agencies.
Citizen Engagement:
Encourage citizens to actively participate in governance and oversight. Support the
establishment of citizen-led monitoring mechanisms.

Promoting Ethical Leadership:

Advocate for ethical conduct and integrity in public and private sector leadership.
Support initiatives that promote accountability and responsibility.
International Cooperation:
Collaborate with international organizations and other countries to combat cross-border
corruption. Advocate for the implementation of international anti-corruption conventions.

Case Studies:
Let's take a look at a couple of case studies that highlight successful advocacy against
corruption:
1.Transparency International:
This global civil society organization has been instrumental in raising awareness about
corruption.
Through its Corruption Perceptions Index and advocacy efforts, it has pushed for anti-
corruption reforms worldwide.

2.Hong Kong's Independent Commission Against Corruption (ICAC):

Established in 1974, the ICAC has been a model for effective anti-corruption agencies.
Its investigative powers, education programs, and public awareness campaigns have
significantly reduced corruption in Hong Kong.
Conclusion:
In conclusion, our role as advocates against corruption is pivotal in ensuring a fair, just, and
transparent society. By understanding the different forms of corruption, recognizing its impacts,
and employing effective advocacy strategies, we can work towards a future where integrity and
accountability prevail.
Remember, each of us has the power to make a difference. Let's continue to be vigilant,
outspoken, and proactive in our fight against corruption.

I. Evaluation and Assessment (30 points)

1. Why do you think a person becomes corrupt?
2. The Philippine government made efforts to curb corruption through legislation.
Explain briefly the Acts:
a. Anti-Red Tape Act / Ease of Doing Business and Efficient Government
Service Delivery Act of 2018
b. Anti-Graft and Corrupt Practices
c. Anti-Money Laundering Act
d. Act of Establishing a Code of Conduct and Ethical Standards for Public
Officials and Employees
e. Government Procurement Reform Act