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Korruptionsprävention als Ordnungsproblem – Wirtschaftsethische Perspektiven für Corporate Citizenship als Integritätsmanagement / Prevention of Corruption as a Problem of Institutional Reform – An Economic Ethics Perspective on Corporate Citizenship as Integrity Management

Author

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  • Pies Ingo
  • Sass Peter

Abstract

The moral claim to fight corruption effectively requires institutional reform. Two characteristics are important. First, corruption is a betrayal of trust in a principal-agent relationship. Second, corruption is a secret crime with a generally very low probability of detection: The corrupt parties try to erect information barriers and thus make it difficult, both for the harmed principal and for law enforcement agencies, to detect their crime. However, compared with the harmed principal on the bribe-taking side, the owners of the firm on the bribe-giving side will find it relatively easy to gather the necessary information about corruption and to take effective counter-measures to prevent it. Therefore, it is of vital importance to provide firm owners with strong incentives to prevent not only bribe-taking but, in addition, to prevent bribe-giving by their employees as well. For this purpose, an indirect second-order institutional reform is needed which sets incentives for setting incentives: a policy that gives firms stimuli to engage in self-governance and to act as corporate citizens by implementing effective measures to prevent bribe-giving by their employees.

Suggested Citation

  • Pies Ingo & Sass Peter, 2006. "Korruptionsprävention als Ordnungsproblem – Wirtschaftsethische Perspektiven für Corporate Citizenship als Integritätsmanagement / Prevention of Corruption as a Problem of Institutional Reform – An Ec," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 57(1), pages 341-370, January.
    • Handle: RePEc:bpj:ordojb:v:57:y:2006:i:1:p:341-370:n:19
    DOI: 10.1515/ordo-2006-0119
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    References listed on IDEAS

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