Corruption has many adverse effects. If permitted to flourish, corruption can, in the worst instances, hinder the development of entire nations.
The World Bank and Transparency International, the global anti-corruption NGO, have demonstrated that, in some developing countries, corruption has reduced growth by deterring foreign investment and channelling funds into “white elephant” projects of primary benefit to corrupt decision-makers. Transparency International has also produced ‘Business Principles for Countering Bribery’ and produced lists of countries where bribery and corruption are common place.
Companies that do business in such countries are more likely to be faced with compromising situations and have a bigger need to have in place policies and systems to address such cases.