• Korean System Dynamics Review
• /
• v.6 no.1
• /
• pp.33-70
• /
• 2005

This study explores the process of corporate corruption via a percolation-based system dynamics model. The preliminary model is an agent-based model constructed in the terms of the corruption networking between ego and other. In the model, the agents behave depending on percolation rules, which represent (1) passing on the corruption opportunities and (2) accepting it. To describe the percolation process in the networks, we develop a further complicated model by combining the basic model with the Bethe lattice. Through the complicated model, we suggest (1) the dynamics of the systemic corporate corruption, (2) 4 patterns of the corruption, and (3) the institutionalization of the corruption. These simulation results provide theoretical and practical implications.

• Asia-Pacific Journal of Business
• /
• v.12 no.4
• /
• pp.13-40
• /
• 2021

Purpose - The purpose of this study is to predict corporate corruption in emerging markets such as Brazil, Russia, India, and China (BRIC) using different machine learning techniques. Since corruption is a significant problem that can affect corporate performance, particularly in emerging markets, it is important to correctly identify whether a company engages in corrupt practices. Design/methodology/approach - In order to address the research question, we employ predictive analytic techniques (machine learning methods). Using the World Bank Enterprise Survey Data, this study evaluates various predictive models generated by seven supervised learning algorithms: k-Nearest Neighbour (k-NN), Naïve Bayes (NB), Decision Tree (DT), Decision Rules (DR), Logistic Regression (LR), Support Vector Machines (SVM), and Artificial Neural Network (ANN). Findings - We find that DT, DR, SVM and ANN create highly accurate models (over 90% of accuracy). Among various factors, firm age is the most significant, while several other determinants such as source of working capital, top manager experience, and the number of permanent full-time employees also contribute to company corruption. Research implications or Originality - This research successfully demonstrates how machine learning can be applied to predict corporate corruption and also identifies the major causes of corporate corruption.

• The Journal of Industrial Distribution & Business
• /
• v.10 no.3
• /
• pp.7-16
• /
• 2019

Purpose - The purpose of this paper is to investigate the determinants of corporate anti-corruption practice disclosure (ACPD) from the perspective of rent-seeking theory. Research design, data, and methodology - Data are hand-collected from corporate social responsibility reports (CSRR) issued by 724 A-share listed firms in China. This paper provides an empirical analysis of the relationship between ownership structure and corporate ACPD as well as its moderating role in the institutional environment. Results - Our findings indicate that rent-seeking is a key factor in influencing corporate ACPD. State-owned enterprises disclose significantly more anti-corruption information than private ones in order to achieve personal promotion of top executives. Monopoly enterprises reported significantly less anti-corruption information than enterprises in competitive industries due to their rent-seeking behavior. The reduction of government intervention and improvement of legal environment are helpful to curb corporate rent-seeking activities and enhance the level of corporate ACPD. Conclusions - Rent-seeking is an important factor in explaining corporate voluntary disclosure in emerging countries. Institutional environment also plays a moderating role in the relationship between ownership structure and corporate voluntary disclosure. Our results are of interest to policy makers, regulators and market participants that are interested in corporate voluntary disclosure and corruption prevention.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.1
• /
• pp.47-58
• /
• 2019

The purpose of this paper is to examine the relationship between the nature of controlling shareholders and corporate anti-corruption practice disclosure (ACPD) as well as the mediating role of political background of the chairman or CEO of the firm on the relationship between the two. The content analysis was conducted to extract ACPD from standalone corporate social responsibility reports (CSRR) of 703 China's A-share listed companies. A dummy variable was constructed according to whether a firm disclosed ACPD or not. Logistic regression analysis was used then. Results show that the nature of controlling shareholders has a significant impact on corporate ACPD, with central enterprises disclosing the most frequently, local state-owned enterprises the second and private enterprises the least. Political background of the chairman or CEO has a negative impact on corporate ACPD of state-owned enterprises. These findings have some useful insights in understanding the rent-seeking behavior and information disclosure behavior of corporates in emerging markets. In order to curb the serious corruption problem which is commonplace in developing countries like China, the government should exert certain pressure to strengthen the supervision of information disclosure of listed firms and improve information transparency.

• Fire Science and Engineering
• /
• v.24 no.5
• /
• pp.107-114
• /
• 2010

Corruption in public offices can lead to corruption in overall society. Moreover, it can also result in steady growth of social expense caused by distrust in direct public relations of civil society administration. In order to devise a more comprehensive measure against corruption, it is essential to evaluate internal organization. This study suggests a scheme for improvement on fire officers' inter integrity, researched by in-depth interview. According to the study, there are numerous conventional corporate cultures remaining in the organization which fire officers are mutually trying to create reasonable and democratic corporate cultures. Furthermore, it was found out that structural issues of the organization, such as guaranteed anonymity of corruption prevention system, closed budget, et cetera, are the mostly dissatisfactory factors other than individual matters of the organizational members.

• Journal of Distribution Science
• /
• v.12 no.10
• /
• pp.47-56
• /
• 2014

Purpose - This study aims to eradicate and halt the continuous life cycle of corruption. Only when ethical management policies are implemented can the business ethics system be effective and transparent. Research design, data, and methodology - The analyses and legislative measures designed by these organizations and countries were based on solid research, uncovered during my visits and interviews conducted with businessmen in those countries. Results - The main focus of in this study is as follows: First, to introduce the programs of UN, OECD, OAS, USA, and Asian countries noted for business ethics and transparency policies; Second, to define each function and problem of these countries' anti-corruption systems, including the U.S. federal government, and to examine Chinese trends. Conclusions - Ethical managements are necessary to improve business ethics. This study suggests four related areas for the purpose of discouraging bribery and corruption; these are improving global corporate governance standards, increasing financial transparency, improving good governance in the public service of the OECD member countries, and focusing on not only the supply side but also the demand side of the corruption market.

• International Journal of Computer Science & Network Security
• /
• v.24 no.5
• /
• pp.172-180
• /
• 2024

Since the beginning of 2015, corporate social responsibility (CSR) models have been changing in connection with the trend towards the transition of joint value creation of corporate activities and consideration of stakeholders' interests. The purpose of the academic paper lies in empirically studying the current practice of social responsibility of transnational corporations (TNCs). The research methodology has combined the method of qualitative analysis, the method of cases of agricultural holdings in emerging markets within the framework of resource theory, institutional theory and stakeholders' theory. The results show that the practice of CSR is integrated into the strategy of sustainable development of TNCs, which determine the methods, techniques and forms of communication, as well as areas of stakeholders' responsibility. The internal practice of CSR is aimed at developing norms and standards of moral behaviour with stakeholders in order to maximize economic and social goals. Economic goals are focused not only on making a profit, but also on minimizing costs due to the potential risks of corruption, fraud, conflict of interest. The system of corporate social responsibility of modern TNCs is clearly regulated by internal documents that define the list of interested parties and stakeholders, their areas of responsibility, greatly simplifying the processes of cooperation and responsibility. As a result, corporations form their own internal institutional environment. Ethical norms help to avoid the risks of opportunistic behaviour of personnel, conflicts of interest, cases of bribery, corruption, and fraud. The theoretical value of the research lies in supplementing the theory of CSR in the context of the importance of a complex, systematic approach to integrating the theory of resources, institutional theory, theory of stakeholders in the development of strategies for sustainable development of TNCs, the practice of corporate governance and social responsibility.

• The Journal of the Korea Contents Association
• /
• v.18 no.11
• /
• pp.298-305
• /
• 2018

This paper explored the impact of adaptive efforts for the 4th Industrial Revolution(hereafter, 4IR) on social cohesion at national level. To examine this relationship, Latent Growth Model was applied to thirty one OECD membership countries, 2006-2015. Adaptive efforts for 4IR was measured by the 4IR Relative Readiness(WEF, 2016) and social cohesion was measured by Corruption Perception Index(Transparency International) and trust on politicians(WEF). Results showed that corruption perception significantly decreased by the 4IR Relative Readiness and legal protection(judiciary independency and corporate ethics) and trust on politicians significantly increased by judiciary independency. These results imply that public and corporate efforts for the 4IR does not necessarily have negative impact on social cohesion as long as legal protection such as judiciary independency and corporate ethics are equally pursuit at national level.

• Asian Journal of Business Environment
• /
• v.5 no.2
• /
• pp.15-22
• /
• 2015

Purpose - Following globalization, Kazakh companies are considered to be among the main economic agents of the country. The influence of Limited Liability Partnerships (LLPs) on Kazakhstan's economic development is becoming increasingly pronounced. Therefore, limitations and backwardness of legislation regarding regulation of corporate governance must be overcome at the earliest. Research design, data, and methodology - We considered the basis for legislation of corporate governance in Kazakhstan, and the corporate governance models that better describe the situation of being in the organization. Results - Earlier studies have identified several problems, including "transparency" of issuers and markets, and the consequent lack of (undeveloped) external control of managers of the former state-owned enterprises; lack of traditional corporate ethics and culture; and corruption, and other criminal aspects of the problem. This article describes several proposals to improve corporate governance in Kazakhstan to solve these problems. Conclusions - Domestic reformers acting without consideration of local features is a common occurrence today. They often ignore that these features are recommended for reputable international organizations, and therefore should be used carefully.

• East Asian Journal of Business Economics (EAJBE)
• /
• v.10 no.3
• /
• pp.41-50
• /
• 2022

Purpose - Through multinational corporate ethics and environmental, social, and governance (ESG), various policy and strategic countermeasures for transparent management in the management and economic fields are presented. Research design, data, and methodology - A literature review is conducted to find important areas for transparent management and to summarize and present transparent management countermeasures based on simple brainstorming opinions from experts. Result - Issues facing transparent management are presented. In particular, multinational enterprises present cases involving prevention of transfer prices and tax avoidance in relation to Industry 4.0. Additionally, a plan is presented to establish a corruption-free economic system through the practice of ESG transparency, ethical management of social enterprises, and transparent management. Conclusion - According to the brainstorming opinions of experts, ESG management and ethical management should be the cornerstone of transparent management in the future. Therefore, it is necessary to institutionally supplement the imposition of digital taxes on fourth industrial companies.