Global Journal of Commerce & Management Perspective
Open Access

Abstract

Corporate Governance as a Solution for Corruption in the Private Sector

Easa Hamdhan Rasheed and Rashad Yazdanifard

Corruption in its broader context has been identified and mentioned in the early years. However, the current concerns over corporate corruption have gained a global attention only recently. Following the collapses of the high profiled corporations such as Enron and Worldcom and the scandals behind the bankruptcy of those organizations, it drew a huge interest of the governments and the public towards finding the reasons for those economic disasters. Although corruption had been a concern in all parts of the world and in every sector of the society, it is deeply rooted in all those sectors across the globe. However the recent trends of corporate society towards building a better corporate citizenship encourage the concepts of transparency, integrity, good governance and CSR. Consequently it is contributing to one of the main solutions highlighted in this work for corruption which is, countermeasures within the corporation. The second and more integrated solution is regulatory and institutional countermeasures. Different nations approach differently in adopting a system that meets the interests of stakeholders as well as the interests of the whole society at large. Law makers are obliged to review the traditional trade laws to keep up with the dynamic and evolving corporate environment. Hence, the solution for corporate corruption is not the corporate governance codes or laws and regulation alone, rather it requires an integrated system; a framework which within the independent authorities or governing bodies work together with the various actors in the corporate world.