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TRANSNATIONAL CORPORATIONS AND CORRUPTION - TOWARDS SOME INTERNATIONAL SOLUTIONS

NCJ Number
58825
Journal
International Journal of the Sociology of Law Volume: 7 Issue: 2 Dated: (MAY 1979) Pages: 125-142
Author(s)
J BRAITHWAITE
Date Published
1979
Length
18 pages
Annotation
LEVELS AND KINDS OF TRANSNATIONAL MANIPULATION OF LAW ARE DESCRIBED, AND SUGGESTIONS OFFERED FOR INTERNATIONAL SOLUTIONS TO THE PROBLEM OF CORPORATE CORRUPTION.
Abstract
INTERNATIONAL CORRUPTION INVOLVES LAW MANIPULATION TO THE ADVANTAGE OF THE TRANSNATIONAL CORPORATION, EVASION, AND VIOLATION. GREATER INTERNATIONAL COOPERATION TO STANDARDIZE LAWS, SET UP STANDARDS OF BEHAVIOR, AND SET UP ANTICORRUPTION REPORTING MUST BE IMPLEMENTED. CORRUPT PRACTICES USUALLY STEM FROM THE NEED OF BUSINESSES TO TRANSACT BUSINESS WITH BUREAUCRACIES THAT ARE OVERBURDENED OR INDIFFERENT, SO THAT THE ONLY WAY TO GET ESSENTIAL PERMITS IS BY PROVIDING MONETARY LUBRICATION TO THE PROCESS. BUSINESSMEN PREFER TO AVOID BRIBES BECAUSE OF ETHICS, LEGAL PROBLEMS, PUBLIC IMAGE, AND THE DAMAGE BRIBES DO TO PROFITS. THE OTHER OPTIONS OPEN TO CORPORATIONS INCLUDE MANIPULATION AND EVASION, BOTH OF WHICH ARE DESCRIBED WITH ACTUAL EXAMPLES. METHODS OF MANIPULATION ARE EXPLAINED AND SOLUTIONS OFFERED, SUCH AS PUBLIC ACCOUNTABILITY ON AN INTERNATIONAL SCALE. A CORPORATION MAY USE THE LAWS OR THE SITUATION TO ITS OWN ADVANTAGE, ESPECIALLY WHEN THE COST OF PROSECUTION OUTWEIGHS THE BENEFITS TO THE STATE. LAW EVASION STRATEGIES INVOLVE (1) REPLACING AN ILLEGITIMATE MEANS WITH A LEGITIMATE MEANS FOR ACHIEVING AN UNDESIRABLE RESULT AND (2) TRANSFERRING OPERATIONS TO A COUNTRY WHERE THE DESIRED MEANS ARE LEGAL. NOTES AND REFERENCES ARE PROVIDED. (RFC)