Essay Sample on Corruption Perception and Global Business

Introduction

Corruption is one of the factors that lead to reduced business climate as whenever the public trust is at risk. Corruption can take many forms such as bribery, graft, embezzlement of public funds as well as extortion (Sanyal and Samanta, 123). When corruption exists, business credibility and credibility reduces when professionals and people in authority misuse their positions for personal gain. The corruption perceptions index released by Transparency International show that countries in sub-Saharan Africa and central Asia performed worse in corruption (Transparency International e.V.). Therefore when reviewing countries in the Latin America as well as Africa that my organization is looking forward to setting up operations in either of the two regions as corruptions are one of the factors that would affect the way the business operates.

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In Africa, the most appropriate country to set up operations would be Botswana that has recorded a corruption index of 61 and ranked position 34 out of the reviewed 180 (Transparency International e.V.). With such a high corruption index, it is clear that non-governmental organizations are more protected as compared to the protection in the more corrupt nations. Somalia performed worst in form of corruption with a corruption perception index of 9 and ranked position 180 (Transparency International e.V.). Such a nation would not be ideal to set up operation as the high levels of corruption would mean weaker development, lost resources as well as least protection of non-governmental organizations (Sanyal and Samanta, 123). In Latin America, Uruguay topped the list as the country with the lowest corruption perception index of 70 and ranked at position 23 out of 180 (Transparency International e.V.). This shows that establishing operations in this country would be favourable as compared to Venezuela that has been ranked least with a corruption index of 18 and ranked at position 169 out of the 180 nations (Transparency International e.V.). Therefore, before making the decision on the country to set up operation the top management will have to consider the levels of corruption as they affect how businesses perform.

Additionally, I would suggest the top management to carry out further research on countries such as Bahrain and Liberia that have shown an increase in corruption perception index as compared to previous years despite being at the top of the least corrupt nations. This is because the counties might be at the risk of becoming the most corrupt nations upon establishment of operation if the trend continues. Also, countries such as South Sudan and Somalia that are ranked the most corrupt countries would pose an ethical challenge on top of corruption as the countries have been faced with civil wars for a long period that would further affect the operations of the business.

Therefore, the corruption perception index will provide a good avenue for the top management to choose those nations that are least corrupt to achieve the objectives of business that are to make a profit as well as secure the lives of its employees and resources. This is because if the management establishes the operations in corrupt nations, they are likely to incur more in bribery as compared to when they chose the least corrupt nations (Vogl, 5). Also, countries with high corruption perception index happen to be the least developed and business would not do well in such nations as compared to those nations that are less corrupt and developed. Thus, when deciding on the region to set up operations, the top management will have to prioritize the level of corruption perception index in each potential country to make sure that the objectives of the business are met.

Works Cited

Sanyal, Rajib, and Subarna Samanta. "Effect of perception of corruption on outward US Foreign Direct Investment." Global Business and Economics Review, vol. 10, no. 1, 2008, p. 123.

Transparency International e.V. "Corruption Perceptions Index 2017." Www.transparency.org, www.transparency.org/news/feature/corruption_perceptions_index_2017.

Vogl, Frank. "Global Corruption." Encyclopedia of Business and Professional Ethics, 2017, pp. 1-5.