Corruption Perception and Best Practices on Corruption Prevention and Remedy in Latin America
According to the corruption perception index of Transparency International (Transparency International, 2018), Latin America is one of the most corrupt regions in the world. This situation is extremely serious considering the economic and social costs associated with this scourge. Multiple studies have shown that corruption is harmful for economic growth, political development and social progress (Bayley, 1966; Mauro, 1997; Kaufmann, 2000). In addition, it has an important cost for companies and there are initiatives to reduce its presence in the corporate world (OECD, 2013). For example, according to the Association of Certified Fraud Examiners, in 2018, the median loss associated with cases of corruption reached $193,000 in Latin America (2018). Being a top-ranked business school in the region, whose mission is to actively promote the comprehensive development of the countries served, educating leaders in key sectors by improving their practices, attitudes, and values, we are engaged in the promotion of transparency and the fight against corruption in Latin America. In one of our initiatives, we joined forces with KPMG, a leading audit firm, and reached out to top-level executives from different countries in order to get a fine-grained view of corruption existence, causes, prevention, and remedy in the region. In this paper, we present an in-depth analysis of the survey results, develop a self-assessment tool to diagnose corrupt practices, and offer practical recommendations for business leaders to promote transparency in their organizations. We surveyed a diverse sample (N=1,018) of executives (38% Presidents or General Managers, 21% Area manager) in Latin America (70% Central America), from a variety of industries and 2 company sizes. Overall, we are able to provide a broad overview of company practices related to corruption prevention in the region, and we discuss the perceptions, attitudes, and major challenges companies face in their anti-corruption and transparency endeavors.
Tzini, K, & Cuenca, L. (2019). Corruption Perception and Best Practices on Corruption Prevention and Remedy in Latin America.