Preface

Corruption has always been present throughout history. For example, it existed in the judiciary systems of the First Dynasty of Ancient Egypt (3100–2700 BC), Ancient China, and Ancient Greece (1400 BC). Many have defined corruption, and its definition is always related to those who are in power, that is explained by the fact that power and the abuse of it gives access to being corrupted and practicing corrupt acts. According to James Chen, corruption is "dishonest behavior by those in positions of power, such as managers or government officials".

There are various types of corruption, including bribery, lobbying, extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement. Other forms include double-dealing, under-the-table transactions, manipulating elections, diverting funds, laundering money, and defrauding investors.

No government is immune to corruption, but some are more likely to be corrupted than others. According to the World Bank studies, "the causes of corruption are always contextual, rooted in a country's policies, bureaucratic traditions, political development, and social history." The World Bank studies show that the more a government institution is weak, the more susceptible it is to corruption.

This indeed has consequences. According to a study published on Econstor.com by Dominik Enste and Christina Heldman on the causes and consequences of corruption, its major effects negatively impact general investments, foreign direct investments, and capital inflows, as well as foreign trade and aid and official growth. It also increases inequality, impacts government expenditure and services, shadow economy and crime.

Based on statistics from the World Population Review, the top five least corrupt countries in 2022 were New Zealand, Denmark, Finland, Norway, Sweden, and Singapore. Alternatively, the top five most corrupt countries were Somalia, Syria, South Sudan, Venezuela, and Yemen. Corruption usually flourishes in countries where there is political instability and systems of dictatorship.

In a country with weak governance systems, weak institutions, and centralization which makes auditing very difficult and sometimes impossible, lack of transparency. Non existence of accountability especially for those in power and namely politicians where the auditing doesn't apply to them. The abuse of this power is constantly witnessed and unfortunately even normalized. It is usually the case in countries where the poor get poorer and the rich get richer, and the people in power get richer at the expense of the poor. From diverting funds to manipulating elections and accepting bribes, people become used to the chaos and under-the-table deals. It is also important to mention the incompetence of some of the people in power, mismanagement, and the wasting of public funds. Of course, corruption has huge negative effects on a country economically and politically, especially when there is no political will for transparency and accountability.

This book is a collection of chapters on corruption, with new insights on how to deal with it in its many forms. It is an interesting read for students who want to know more about corruption, academics who wish to enhance their knowledge of the field, and businesspeople who want to avoid corruption in their dealings.

> **Josiane Fahed-Sreih, Ph.D.** Lebanese American University, Beirut, Lebanon

> > **1**

**Chapter 1**

**Abstract**

HR actions

**1. Introduction**

Bribery Practices of Three

HRM Perspective

*Hussain Syed Gowhor*

MNCs in the Host Countries: An

This chapter examines three bribery cases of three different Multinational Corporations in three different countries from human resource management (HRM) perspective. The first case is about the bribery of Halliburton Energy Services of the USA in Nigeria, the second one is about the bribery of Scancem International ANS of Norway in Ghana and the third one is about the bribery of Niko Resources Ltd. of Canada in Bangladesh. The MNCs were involved in the bribery through their subsidiaries in the host countries. The top management of the MNCs and subsidiaries were involved in the bribery case. The cases show that the bribes were paid for protecting the interests of the subsidiaries in the host countries. The bribes were paid through some intermediaries and disguised in some ways. In examining the cases from HRM perspective, I looked at the relevant facts about the country and its government, the relevant facts about the MNCs and involved personnel(s), the relevant information about the case, the enablers of unethical behaviour and the HR lacunae in the case.

**Keywords:** bribery practices, MNCs, host countries, HRM, ethics, HR lacunae,

Is ethics a matter of conscience or a matter of management? The answer to this question may be found in the old adage that teaches us that prevention is better than cure. You will hardly find an organisation saying that they do not bother about ethics or corporate social responsibility. Still, you will see that the repetitions of unethical practices have not stopped. Rather, we frequently come to know about the unethical practices of organisations involving a fairly large amount of money. When these unethical practices are committed by the employees or management of Multinational Corporations (MNCs), it is definitely an issue of concern because MNCs are believed to shape global values and culture in the business world as they are the 'primary agents of justice' (Wettstein, cited in [1], p. 193). It is very interesting to note that most of the unethical practices of the MNCs so far unearthed occurred in

Examination of the Issue from
