Question

1 - Define corruption - how does corruption correlate with national growth and levels of per capita income?

2- Why do companies care about ethical behavior?

Answer 1

Corruption can be defined as the use of morally unjustifiable practices in order to achieve the desired outcome. It can be thought of as a means to an end situation where one individual, group of individuals or an organization, in order to further their agenda, resort to unethical means and recycles in order to provide them with the best possible returns for their input without thinking of any social, economic or moral consequence.

Corruption correlates with per capita incomes as well as national growth as an inverse factor which, as it gets higher have a negative impact over the factor of sustainability of growth. Since corruption engages unethical acts such as money laundering as well as bribery, it tends to threaten the safety, need, and security of the population, hindering their ability to make a sustainable living and halting their growth.

Companies tend to follow an ethical outlook and understanding with their business processes in order to simply encourage moral behavior as well as catered to the social implication and responsibility of businesses. In fact, it can be considered to have a serious impact on their brand image and its functionality as a result of any unethical practices.