Corruption - An Evil ToCreate Diminished Business

EnvironmentExtortion, bribery, scandals, forgery, embezzlement and graft are just some of the grizzly facesof corruption. In general terms, corruption refers to illegal activities that are committed toacquire personal gain. An overly simplistic definition of corruption defines it as a handshakeamong ordinary people, businessmen and government officials for personal benefits. A recentstudy postulates that corruption in business leads to needless inflation of employees’ rank,resulting in inefficiency in the organization. This, in turn, creates an unfavorable businessenvironment and ultimately serves as a serious barrier against company’s as well as nation’swealth and growth.

According to Stanford Graduate School of Business, corruption develops a diminishedbusiness environment when public trust is put at risk. Moreover, it leads to reduced businesscredibility and profits when professionals misuse their positions for personal gain. Corruptionhas several disappointing outcomes on the business that are discussed below:

InefficiencyBusinesses usually suffer inefficiency and operational fluency with improper use oforganizational resources and misuse of company’s fund. When the news about a corruptedbusiness breaks, it loses customers’ trust.

Lost ResourcesApart from just inefficient use of company’s resources, corruption can have many othereconomic effects on the business. To cover up corrupt professionals’ activities, employees’ranks are inflated. The cost of inflated ranks often results in increased cost of production.

Weakened DevelopmentInvestors find skeptical of themselves in doing business with the companies that are notoriousfor their corrupted image. No matter whether you are seeking investment to grow thecompany or willing to sell investments for company’s survival, you hardly find trustedinvestors. Corrupt business practices unfairly affect the competition, investors’ interest andconsumers’ trust.

Increases CrimeCorruption in business adds to intervention of crime-fighting government agencies, policedepartment and anti-corruption agencies. Also, you can’t deny the fact that corruptioninfiltrates all business levels. For this reason, corruption usually ends up feeding black marketinterests and supports organized crime efforts. Apart from this, it also promotes criminalactivities.

Though thousands of NGOs, non-profit organizations, anti-corruption government agenciesare working actively to constitute a corruption-free world, we need to work collectively,shoulder to shoulder to uproot corruption from business and government sectors. Looking forways to prevent corruption in business? Find 100% positive solutions with Uniocracy, the newworld movement that benefits all mankind by preventing corruption crimes in first place.