Fighting Corruption Collectively: How Successful are Sector-Specific Coordinated Governance Initiatives in Curbing Corruption? (Wirtschaftsethik in der globalisierten Welt)

This book represents the first systematic qualitative analysis of a new type of collective anti-corruption initiatives. The author describes how companies can take responsibility in the fight against corruption and which six success factors play an important role in this difficult endeavor. Despite great international efforts throughout the last two decades, corruption has not significantly decreased on a global level. In light of globalization, private actors increasingly cooperate in the fight against corruption in the context of sector-specific coordinated governance initiatives. In this study, this new collective approach is examined in view of its potential to curb corruption. Contents • Introduction • Theoretical Background: Self-Interest as a Means of Preventing Corruption • Methodological Approach • Multiple-Case Study Analysis • Cross-Case Analysis and Discussion • Summary and Conclusions Target Groups • Researchers and students in the fields of politics, economics, and business ethics • Practitioners such as compliance managers and other anti-corruption specialists The Author Berta van Schoor works as a compliance manager at a major German company. She wrote her doctoral thesis at the Business Ethics Chair of the Technical University Munich. As a co-leader of the regional chapter of Baden-Wuerttemberg of Transparency International Germany, she regularly speaks on topics like corruption prevention and the role of business in combating corruption. While working on her thesis she also gave lectures in business ethics and sustainability management Table of contents 6 List of Tables 9 List of Figures 10 List of Abbreviations 11 Danksagung 13 Abstract 14 1 INTRODUCTION 15 2 THEORETICAL BACKGROUND. SELF-INTEREST AS A MEANS OF PREVENTING CORRUPTION 24 2.1 Corruption as a Societal Challenge in the 21st Century 24 2.1.1 Delimiting Corruption 24 2.1.2 Defini ng Corruption 26 2.1.3 Categorizing Corruption 29 2.1.4 Conceptualizing Corruption 32 2.1.4.1 Corruption as a Principal-Agent Problem 32 2.1.4.2 Corruption as a Collective Action Problem 34 2.1.4.3 Corruption from an Order Ethics’ Perspective 36 2.1.5 Assessing Corruption 42 2.1.5.1 Macro Effects 42 2.1.5.2 Micro Effects 45 2.1.5.3 Quantification of the Effects of Corruption 47 2.2 Coordinated Governance Initiatives as a New Approach for Curbing Corruption 49 2.2.1 International Anti-Corruption Eff orts in Historical Perspective 49 2.2.1.1 Intergovernmental Cooperation: Anti-Corruption Conventions and Treaties (‘Hard Law’) 50 2.2.1.2 Increasing Participation of the Private Sector: Non-Binding Guide-lines and Codes of Conduct (‘Soft Law’) 54 2.2.2 Overcoming the Governance Gap 59 2.2.3 Governance Structure and Overview of Coordinated Governance Initiatives 63 2.2.4 Potential Success Factors of Coordinated Governance Initiatives 77 2.2.5 Empirical Basis for the Assessment of Anti-Corruption Initiatives 83 2.3 Summary 87 3 METHODOLOGICAL APPROACH 92 3.1 Problem Statement and Research Aims 92 3.2 Research Paradigm and Strategy 94 3.3 Research Design: Multiple-Case Study Design 97 3.4 Purposive Sampling: Case Selection 98 3.5 Data Collection: Interviews and Documents 102 3.6 Data Analysis: Template Analysis 108 3.7 Limitations of the Multiple-Case Study 110 4 MULTIPLE-CASE STUDY ANALYSIS 112 4.1 EMB Case 113 4.1.1 Profile, Origin, and Sector Characteristics 113 4.1.1.1 Origins: Corruption Scandal in the Bavarian Construction Sector 114 4.1.1.2 Competitive Structure and Ethical Risks in the Construction Sector 115 4.1.2 Organizational Set-up and Operational Procedures 117 4.1.2.1 EMB Governance and Funding 117 4.1.2.2 The EMB Commitment Process: Four Binding Elements 118 4.1.3 Success Factors – General View 120 4.1.4 Embeddedness in an Established Institutional Framework 123 4.1.5 Highly Committed Participants 124 4.1.6 Lean Governance Structure 125 4.1.7 Repeated External Audits 127 4.1.8 Competitive Advantages 128 4.2 EITI Case 130 4.2.1 Profile, Origin, and Sector Characteristics 130 4.2.1.1 Origins: The Resource Curse and the Role of Civil Society 131 4.2.1.2 Legal Framework of the Extractive Industry 132 4.2.2 Organizational Set-up and Operational Procedures 135 4.2.2.1 EITI Governance and Governing Bodies 135 4.2.2.2 International Supporters and EITI Funding 138 4.2.2.3 The EITI Commitment Process: From Candidature to Compliance 139 4.2.3 Success Factors – General View 141 4.2.4 Supportive Institutional Framework 143 4.2.5 Representation of Diverse Interests 145 4.2.6 Narrow Scope of Objectives 148 4.2.7 Flexible Governance Structure 148 4.2.8 Ability to Enforce Rules 150 4.2.9 Country-Ownership 151 4.3 MACN Case 152 4.3.1 Profile, Origin, and Sector Characteristics 152 4.3.2 Organizational Set-up and Operational Procedures 155 4.3.2.1 MACN Governance and Funding 155 4.3.2.2 The MACN Commitment Process: Seven Anti-Corruption Principles 157 4.3.3 Success Factors – General View 159 4.3.4 Awareness-Raising within the Maritime Sector 161 4.3.5 Knowledge and Experience Sharing Among Participants 161 4.3.6 Self-Assessment and Reporting Requirements 163 4.3.7 Creation of Tangible Benefi ts through Local Collective Actions 164 4.3.8 Visibility towards and Recognition by External Stakeholders 165 5 CROSS-CASE AN ALYSIS AND DISCUSSION 167 5.1 Initiatives’ Company Composition 168 5.2 Situations of Crisis and External Threats as Initiating Factors 172 5.3 Existence of a Supportive Institutional Framework 175 5.4 Continuing Commitment of Participants 177 5.5 Complexity-Dependent Governance Structures and Procedures 182 5.6 Enforcement Mechanisms for Reputation Protection 186 6 SUMMARY AND CONCLUSIONS 189 BIBLIOGRAPHY 198 APPENDICES 220 Appendix 1: Interview Guide 220 Appendix 2: List of Documents Analyzed – EMB Case 222 Appendix 3: List of Documents Analyzed – EITI Case 225 Appendix 4: List of Documents Analyzed – MACN Case 230 Front Matter....Pages I-XVII Introduction....Pages 1-9 Theoretical Background....Pages 11-78 Methodological Approach....Pages 79-98 Multiple-Case Study Analysis....Pages 99-153 Cross-Case Analysis and Discussion....Pages 155-176 Summary and Conclusions....Pages 177-185 Back Matter....Pages 187-221