Corruption

Bribery is the best known form, but the term is wider. It includes officials stealing public funds, demanding payment for services, awarding contracts to relatives, trading influence, and using inside information for gain. It occurs at every level, from a clerk asking for a small payment to ministers diverting national funds. Experts divide it by scale and setting, such as petty, grand, political and institutional corruption. Laws vary, and international instruments such as the UN Convention against Corruption and the OECD Anti-Bribery Convention encourage countries to align. Corruption is also tied to other financial crime, because the proceeds need laundering and often travel abroad. Firms assess it as a risk linked to countries, sectors such as construction and defence, and business partners. Practitioners use indices such as the Corruption Perceptions Index as a rough guide. Beyond fines, it drains public money, erodes trust in institutions and slows growth.

A tech firm wants to enter a new market. Its risk team notes that licences there are often delayed unless an informal payment is made. It decides to hire a reputable local adviser, avoid any payments to officials, document each application step and prepare staff on how to respond if asked for a bribe.