Running head: CASE STUDY 1 Critical Analysis of a Case Student’s Name: Sai Divya Kolakaluri Institution Affiliation: Ottawa University Date: 7th June 7, 2020 CASE STUDY 2 Critical Analysis of a Case Primary Ethical Dilemma The primary ethical dilemma in the case is corruption, which occurs between three parties, namely, department managers, supervisors, and subordinate workers. Corruption entails the abuse of public power for personal benefit. It also includes much unethical behavior in the workplace like embezzling, forgery, and a conflict of interests. Bribery is also a form of corruption, which is not only ethical but also illegal (Gorsiraet al., 2017). Typically, in organizations, corruption usually leads to inequality, poverty, conflicts, and development failures. Form analysis, leadership is the most critical factor. It determines if an organization’s culture is susceptible to corruption. It is precise that the subordinates only emulate their leaders’ behaviors, which creates a group of norms that accept corruption. Corruption is primarily the abuse of power or authority that one has been given. It involves the use of authority for one’s gains. Importantly, corruption is formed, and it can take place in different ways. It can vary between minor favors between small numbers of people, which is commonly known as petty corruption. It can also substantially affect the government, and this is known as grand corruption. Itso includes corruption, which is common in society, whereby it is acknowledged as one of the symptoms of organized crime. Arguably, corruption is an endemic sociological occurrence in almost all countries globally, but it varies in the degree and proportions, and it adversely affects people’s development Various literature has been reviewed on corruption to identify and get its main occurrences in scientific research. Scholars argue that corruption is a broad phenomenon that entails obtaining specific favors through personal networking or paying money or gifts or the CASE STUDY 3 general services reimbursed from state resources. The narrow definition of corruption considers corruption as illegal and illegitimate in the contemporary world. Polner and Ireland ( 2010) state that the perception of corruption varies depending on the cultures of each society. The researchers’ further state that one of the significant causes of corruption is poor leadership, which involves various unethical activities that distress the multiple aspects of a particular company. Fraud can take place through bribery actions that entail activities in the organization. Arguably, when firms begin corruption practices, it becomes difficult to resist the same behavior in the future. Bribery in the firms has adverse consequences because if organizations notice they can manage to use bribes and end up successful, they will not focus on developing the firm’s competitiveness by making ethical choices. From studies, corruption harms the country’s development. Apart from reducing economic growth, it also affects the development of human beings by increasing poverty and reducing social services. There is an increase in the literature between corruption and economic growth. As suggested by Matei (2011), corruption tends to be more expensive than the rest of the ordinary taxes. When it comes to people in business, they are already aware that a bribe is required before one can start any enterprise. Corruption also makes government officials allocate public resources on an illegal basis. Typically, corruption also reduces the quality of infrastructure and public services, which affects people’s development in those particular communities. Weiler and Elke argue that corruption also reduces the availability of social services while also increasing the cost of those particular services. Typically, access to social services becomes limited, making it easier for those leaders in those areas to make corrupt benefits. Individuals’ fundamental human rights and freedoms are based on the bribes given to the CASE STUDY 4 officials instead of the state of being guilty or innocent of the person concerned. Corruption also leads to poverty because there are unjust decisions made in the organization. Possible Cause of Action One of the best ways of fighting corruption is to understand and comprehend its various forms. As noted, there are variously formed of corruption, namely grand, political, and administrative. Fighting corruption in the contemporary world has been a challenge, which is being addressed by the international development community for the past two decades. However, interventions of anti-corruption are still being implemented to fight corruption. Corporate governance: One significant way of dealing with corruption in organizations is through corporate governance within the institution. Good governance is a useful anti-corruption tool apart from enacting efficiency and ensuring suitability in a company. However, in most ways, ethics define most of the responses in the workplace either at the manager’s level or the junior level or irrespective of the size or geographic location of the business. Typically, the way business decisions are made critical in an organization. Notably, organizations need to take action and adopt policies, which prohibit corruption in an organization. For instance, the management can make anti-corruption as part of the companies culture and activities. The subordinate staff and the rest of the employees need to be shown that the company does not tolerate bribery and corruption. Further, roles for the boards and the top management need to be clearly defined. The board’s responsibilities and the senior management should include ensuring that the organization’s strategy and anti-bribery policy are in place. The people with the required skills, authority, and resources should handle the compliance functions, and defining these roles makes it easier for the anti-bribery and anti-corruption policies to be successful ( Pastrovic, 2013). CASE STUDY 5 Efficient leadership: The more the leadership team is engaged, the more likely the rest of the team can believe in the policies of reducing the bribes and corruption risks at the company. The company leaders should be on the front line in fighting corruption, and they can be responsible and consent to the laws against fraud. They should also ensure that the employees differentiate between acceptable conduct and those not acceptable in the organization. Being a leader means acting ethically. Hence, the leaders should ensure that they do their business right, which involves making ethical decisions even if they may end up losing some business chances. Change of organization culture: Corporate culture has a significant impact on organizations because it defines how employees behave, interact with each other, and make decisions in the company. Most importantly, a culture of compliance should be created. Significantly, the organization should build a culture that values ethics and compliance within its operations. Arguably, this will entail communication and training programs on compliance with the ant corruption policies. (Pastrovic, 2013) Social accountability interventions: these interventions include the direct engagement of the employees. Social accountability entails the actions and procedures, which workers can use to make the organization accountable. They also include the activities by the government and the civil society, which enhances these efforts. In this type of intervention, citizens and social organizations are mobilized through social accountability programs. The programs are critical for creating awareness and building activities aimed at spreading information concerning fighting corruption and its adverse effects on individuals. Reforming the management system: Addressing corruption in the company is vital for maintaining the reputation of the company and gaining public trust. Understanding of different forms of corruption is essential to come up with effective initiatives of fighting corruption. CASE STUDY 6 Primarily, the principal approach is changing structures, which encourages corruption and the creation of an environment, which reduces the opportunities for corrupt practices. Notably, this can be done by changing the management systems and the organizational culture to improve the integrity of the organizations and strengthen its accountability to the community. Role of information technology Necessarily, information and technology is a useful tool, which can be used to support anti-corruption efforts. In the past, it was challenging to expose corruption deals because of the massive amounts of data involved in the organization. However, through big data, there are new management techniques that can be used to prevent fraud by detecting patterns and any suspicious transactions in the company (Rasheed, & Yazdanifard, 2013). Besides, anti-corruption software tools can be explicitly designed to detect and respond to any malicious activities in a company by identifying the project, which is susceptible to fraud risks and any irregularities in the company. Arguably, integrating the tools in the organizations will enhance decision-making and lead to transparency in the company, ultimately reducing the corrupt deals. Strengths and Weaknesses of those Actions The strengths of the actions are that the measures will ensure organizations will be corruptions free. As a result, a proper working environment will be provided, and a conducive relationship between the different employees will be created. There will be no favoritism, and the employees will be hired on their merits only. The strength of implementing the actions plan aginst corruption in the organization is that the leaders will not abuse their power, which will enhance the relationships between the managers and the subordinates. Moreover, through corporate governance, there will be a distribution of rights and responsibilities among stakeholders. Therefore, this will ensure that, once anti-corruption laws are adopted, the CASE STUDY 7 particular leaders will make the company’s necessary decisions. Another notable strength of corporate governance is that it can reduce corruption by addressing corruption issues in the organization. Arguably, with transparency and accountability in an organization, corruption cases will decrease. Conversely, some of the weaknesses of the actions against corruption are that it may be difficult for the management to change the organization’s organizational culture. Since the corporate culture will no longer be abe to support the new business policies, the change will be needed, and implementing these cultural changes will take time. Typically, it might be challenging to change the employee’s views and norms, which they are already used to work with currently. Analysis of Course of Action Corruption is a severe issue in various organizations, and that is why initiatives are required to curb corruption to ensure that organizations run smoothly and effectively. Thus, companies should make real commitments in terms of time and resources to fight corruption. In light of this, that is why corporate governance is essential in an organization as an anti-corruption tool. From the analysis of the different courses of action, they are based on a consequential approach because of the actions resulting from the adverse effects of corruption behaviors. Arguably, due to the severe consequences of corruption ordeals, the anti-corruption can play a vital role in fighting corruption in the organization. The courses of action are ethical, and they will promote trust because corporate bribery can be a social tarp that can end up building mistrust among various stakeholders. Consequently, this undermines the trust between different members of an organization. Pros and cons the Action CASE STUDY 8 One of the significant advantages of changing the organizational culture is that a culture of ethics and anti-corruption will be established, which will enhance financial performance and enhance the reputation of the company. The influential organization’s ethics will not only help in fighting corruption, but the organization culture wil also help in attracting employees that are high performing, and this will lead to customer satisfaction and productivity of the organization. The only disadvantages of changing the organizational culture are that some of the employees may resist the new changes in implementing the anti-corruption policies because their usual culture is deeply rooted in particular beliefs and values (Seleim & Nick Bontis, 2009). In some cases, including new costs may backfire, even if it is for the employees’ well-being and the entire organization. Identically, the advantage of ensuring proper leadership in fighting corruption in the organization is that the leaders significantly influence employee behaviors. Dramatically leaders can change people’s attitude and one they set policies of anti correction, and it will be easier for the subordinates to follow them (Kroukamp, 2014). Further promoting effective leadership in an organization will ensure that there is good discipline, and proper working ethics and a sense of accountability. Corporate governance also has significant benefits in fighting corruption. Corporate governance will entail rules that highlight the norms, which should align with the company’s mission and objectives. A proper system of ethics is of benefit to the organization because it helps to eliminate corruption. Similarly, adequate governance will ensure that the code of ethics encourages ethical behavior, influencing the making of moral decisions in an organization. In conclusion, organizations need to give themselves anti-corruption compliance programs, which will enable them to prevent bribery and other types of corruption practices. As noted, corruption has various adverse effects. Fraud increases the cost of businesses, reduces CASE STUDY 9 public trust, and negatively affects human development in society. Arguably, the aspects of corruption affect the poor and the vulnerable, taking away opportunities at the workplace, because they are not in a position to bribes for various posts. Essentially, a proper leadership approach is vital in the organization to reduce misconduct and corruption. In conclusion, all should be innovative and engage with the stakeholders to enhance the success of anti-corruption strategies in the company. References CASE STUDY 10 Ahmed Seleim & Nick Bontis. (2009). The relationship between culture and corruption: a crossnational study. Journal of Intellectual Capital, 165-184. Easa Hamdhan Rasheed, & Rashad Yazdanifard. (2013). Corporate Governance As A Solution For Corruption In The private sector. Global journal of commerce & management perspective, 116-119. Goran Pastrovic. (2013). Abuse of Information Technology (IT) for Corruption. Branelovica: a local school of public administration. Kroukamp, H. (2014). Effective Leadership: The Solution to End corruption in the south African public sector. Journal of Business and Economics, ISSN 2155-7950, USA, 1413-1421. Madelijne Gorsira, Linda Steg, Adriaan Denkers & Wim Huisman. (2017). Corruption in Organizations: Ethical Climate and individual motives. administrative sciences, 1-19 Mariya Polner & Robert Ireland. (2010). Overview of Literature on Corruption. London: World Customs Organization. Matei, L. (2011). Assessing the Anti-corruption Strategies: Theoretical and Empirical Models. Journal of Management and Strategy, 17-40. CASE STUDY 11
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