1!

2!

3!

4!

1. Bribery payment given personally to a govt official in exchange of his use of official powers. This type has 2 participants: bribe

giver & bribe taker. 2. Trading in influence

a.k.a Influence peddling a situation where a person is selling his/her influence over the decision process involving a third party person or

institution. 3. Patronage

Favoring supporters for example with government, employment. 4. Nepotism and Cronyism

Nepotism is favoring relatives of an official is a form of illegitimate private gain and cronyism, on the other hand, is favoring personal friends. 5.Electoral Fraud

illegal interference with the process of an election. 6. Embezzlement

Outright theft of entrusted funds (misappropriation of property) 7. Kickbacks

An official's share of misappropriated funds allocated from his or her organization to an organization involved in corrupt bidding. 8. Unholy alliance

A coalition among seemingly antagonistic groups especially if one is religious for AD HOC or hidden gain.

5!

6!

7!

If we take the human nature as a base we may explore why all political systems have experienced corruption. But it does not explain why some officials engage in corruption while others do not. These differences we can understand by making apparent the causes and opportunities for corruption. As we have seen in the first chapter there are many different definitions of corruption and, consequently, the causes and opportunities for corruption are also expected to be many in number. So In this chapter I will focus on the factors which may be causes of corruption and which may create appropriate conditions or opportunities for corru HOMEption as in the world as well as in Armenia. Leslie Holmes (1993 p.157) the causes of corruption divides into three categories, cultural, psychological, and system-related. Cultural factor: “In many countries certain types of corruption are more or less acceptable often depending on the scale in the traditional political culture.” Some countries have more of a reputation for corruption particularly because of traditional attitudes towards family, kinship, etc. The other factor of causing corruption is psychological factor. There are number of psychological factors that help to explain some types of corruption. Taking into account the internal factors of individuals some individuals are "naturally evil" and will commit criminal acts, including corrupt ones in any type of system. The external factors, individual's relationship to the group is also important. According to Holmes (1993, p. 165) “the power of both peer- pressure and peer-comparison can be great, for instance in the words of one artist “when the best of people take bribes, isn't it the fool who doesn't?” Human weakness also may cause corruption. Some people find it difficult to reject offers from a person of a "generous" nature. Some officials will accept gifts because they know they have been particularly helpful to someone and either feels they "deserve". System related factors: One of the factors that distinguishes post-communist states from transitional societies elsewhere is that they have been undergoing multiple and simultaneous transitions since the collapse of communist power. The civil society's role and power also can give the opportunity for corruption particularly the role of media. The poor drafting of laws and regulations also creates many opportunities for corrupt acts. For example, imprecise drafting and ill-defined terminology gives tax inspectors and custom officers a large margin of discretion, which they use to extract bribes. Particularly at the regional and local government level, tax requirements may be undocumented or not publicly available. High tax rates also can also give opportunity for corruption. Literature dealing with foreign economic aid recognizes that government-to-government foreign economic assistance often can promote those conditions that foster corruption.

8!

Example of  

9!

1. Strong business case for having an an9‐corrup9on strategy. 2. Companies recognize the vulnerability to corrup9ons, and the importance of an9‐corrup9on :  ‐ 93% say their company has lost a big because of corrupt officials.  ‐ reputa9on is damaged from corrup9on. 3. Companies lose real and significant business opportuni9es because of corrup9on. ‐ 42% believe that their compe9tors pay bribes. 4. Companies' underlying policies and controls do not do anything to iden9fy the risk due to poor design.   

10!

•  The business industry pays a huge amount of corporate tax every month and yet, they do not get the benefits of it. 

•  The taxes paid are not being used for what it’s supposed to be for so the business industry does not feel the effect of what they’re paying for. 

11!

•  Because the Philippines has been known of having corrupt leaders, other would be led to think that everyone, also the heads of the businesses, are also corrupt. 

12!

•  Not a lot of investors would be interested in inves9ng their money in some filipino businesses because of their lack of trust to the heads who might just keep the money to themselves. 

•  There may be not enough money to go around the business industry because of corrupt leaders of the country. 

13!

14!

15!

•  Because the employees are not being paid well due to corrupt leaders, they get more encouraged to resign and just look for another job. 

•  This won’t look good on paper when businesses have a lot of resigna9ons.   

16!

17!

18!

19!