Politics

Corruption and Governance in International Business: Risks, Rules and Remedies

Module code: 936M9
Level 7 (Masters)
30 credits in spring teaching
Teaching method: Seminar
Assessment modes: Essay

This module is divided into three main parts, plus an introduction and conclusion.

The introduction gives you an overview of types and patterns of corruption, both bribery in international business, state capture and facilitation payments - building on and recapping the session on the 'Interdisciplinary Approaches' module.

In the first part of the module, you focus on specific sectors (one per week), such as:

  • defence
  • construction
  • pharmaceuticals
  • finance.

In the second part of this module, you consider the legal environment and corporate responses.

You begin with the theory of legislating against bribery, looking at Optimal Deterrence theory and the Klitgaard approach to anti-corruption.

You are then introduced to the main Anti-Bribery Laws and conventions, covering FCPA/OECD ABC/Bribery Act. You analyse changing enforcement patterns and new developments, discuss exceptions such as facilitation payments, and then evaluate the main corporate responses to AB laws (compliance, risk assessment, corporate disclosure and reporting).

This section includes a teaching case based on a recent enforcement.

In the third part of this module, you focus on Voluntary Private Regulation and Collective Action Initiatives. You start by elaborating on the theory of collective action and clubs, before evaluating some key industry initiatives, with engagement from external speakers such as:

  • EITI
  • Maritime Anti-Corruption Network
  • PACI etc.
  • TI guiding principles etc.

Module learning outcomes

  • Use suitable analytical tools suitable to explain the patterns of corruption in international business, including major risk areas and sectoral weaknesses
  • Critically evaluate the main legislative and regulatory initiatives to fight bribery in international business
  • Analyse the strengths and weaknesses of different corporate responses to the risks of corruption in international business, taking into account organisational characteristics as well as the relevant characteristics of the context
  • Analyse the theory and practice of voluntary regulation to combat bribery and corruption, and evaluate the prospects of particular initiatives