Corruption in Business and International Development (936M9)

15 credits, Level 7 (Masters)

Spring teaching

When we study corruption, we often think about it as a problem of countries or individuals. This module focuses more on organisations as actors and on the corruption-related risks that arise when they operate internationally, in the context of business relationships as well as in the realm of international development work.

This module will explore the day-to-day realities of operating in difficult environments, as well as how governments have tried to control corruption using laws and enforcement, with mixed results. This provides an opportunity to give further thought to theoretical frameworks such as rational-choice theory, principal-agent theory and the development of norms and culture, as we analyse why corruption is a risk to organisations operating internationally, why tough laws are seen as the answer, and the importance of leadership, culture and political will.

Business and aid may seem worlds apart, but in practice, both private-sector companies and aid agencies seek to achieve objectives in contexts that are high risk for corruption. They face some similar challenges in ensuring that they comply with local and international laws, assessing risks related to local partners and building an organisational culture in line with their values.

This module begins by introducing and explaining the main patterns of corruption in international business and international development. It draws on the latest research to identify where the key risks lie and discusses what data sources can be used to investigate corruption in this area. The module then focuses on anti-bribery laws such as the Foreign Corrupt Practices Act and UK Bribery Act. We learn how the legal and regulatory framework is developing, including patterns of enforcement. The module discusses particular risks that arise in certain sectors, such as construction, pharmaceuticals and defence.

For aid organisations, the ethical dilemmas posed by corruption risks can be acute. How should organisations with a mission to relieve poverty and improve social justice react when confronted with demands for bribes? Paying up clearly conflicts with their values, but not paying can also undermine their ability to achieve their goals. Moreover, aid agencies are under pressure to localise their activity, but relying on local partners can mean exposure to greater risk.
The module considers a range of strategies that organisations can use to address corruption risks, including whistleblowing policies, audits and collective action.

On this module, you will:

• learn about the corruption risks that face organisations operating internationally and especially in high-risk contexts, and how those are dealt with both in theory and in practice
• take a tour of anti-bribery legislation, look at enforcement around the world, and how organisations have responded to this by putting into place anti-bribery and corruption compliance procedures
• look at the particular risks which surround public procurement and government contracts, and zoom in on some key sectors
• examine a range of tools that can be used to manage and mitigate the risks, notably collective action.

 

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 22 hours of contact time and about 128 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2024/25. However, there may be changes to these modules in response to feedback, staff availability, student demand or updates to our curriculum. We’ll make sure to let you know of any material changes to modules at the earliest opportunity.