R.G.

ALFONSO GOVBUSMAN 2nd SEM 2020-2021

GOVBUSMAN MODULE 7:

Chapter 8: ADVOCACY AGAINST CORRUPTION

Expected Learning Outcomes

After studying the chapter, you should be able to …

1. Understand what corruption is.

2. Know how corruption may look like.
3. Know why and how does a person become corrupt.
4. Explain the ill effects of corruption.
5. Describe the characteristics of corruption.
6. Learn and familiarize himself/herself of the impact of corruption in the Philippines as well the
efforts both of the public and private sectors to curb it.
7. Know how corruption may be prevented.

ADVOCACY AGAINST CORRUPTION

What is Corruption?

Corruption is the abuse of private and public office for personal gain. It includes acts of bribery,
embezzlement, nepotism, kickbacks and state capture. This is often associated with and reinforced by
other illegal practices such as bid rigging, fraud, or money laundering, extortion.

Simply defined, corruption is receiving, asking for or giving any gratification to induce a person to do a
favor for private gain. This act covers not only public corruption involving misuse of public power by
elected politician or appointed civil servant but also private corruption between individuals and
businesses.

Corruption is the misuse of entrusted power (by heritage, education, marriage, election, appointment)
for private gain. It covers not only the politician and the public servant but also the CEO, CFO and other
employees of a company. Corruption often results from patronage and is associated with bribery.

Corruption is an improbity or decay in the decision-making process in which a decision-maker consents

to deviate or demands deviation from the criterion which should rule his or her decision-making, in
exchange for a reward or for the promise or expectation of a reward, while these motives influencing his
or her decision-making cannot be part of the justification of the decision.

In general, corruption is a form of dishonesty or criminal activity undertaken by a person in an

organization entrusted with a position of authority, often to acquire illicit benefit.

1 | Page
R.G. ALFONSO GOVBUSMAN 2nd SEM 2020-2021

Corruption may take place in any of the following forms / ways:

● A company paying a bribe to win the public contract to build the local highway, despite
proposing a sub-standard offer.
● A politician redirecting investments to his own hometown rather than to the region most in
need.
● Public official embezzling funds for school renovation to build his private villa.
● A private company manager recruiting an ill-suited friend for a high-level position.
● Or, local officials, demanding bribes from ordinary citizens to get access to a new water pipe.
● A salesman bribing the purchasing manager of a company to give preference to his products.

At the end of the day, those hurt most by corruption are the world’s weakest and most vulnerable.

2 | Page
R.G. ALFONSO GOVBUSMAN 2nd SEM 2020-2021

WHY AND HOW DOES A PERSON BECOME CORRUPT

Corruptions spread when there are opportunities, when risk is minimal in comparison to benefits
obtained or when one is confronted with issues like:

❑ Career advancement
❑ Earnings of more income
❑ Financial problems caused by illness, loss of property etc.

Those engaged in corruption learn how to be dishonest. The next corrupt actions becomes easier to do
unless one is firmly rooted on solid principles and has been nurtured in an upright manner.

ILL EFFECTS OF CORRUPTION

Economically,

● Corruptions add up to 10% of the total costs of doing business in any part of the world and up to
25% of the cost of procurement programs in developing countries.
● Corruption leads to waste or the inefficient use of public resources.
● Corruption corrodes public trust, undermines the rule of law, and ultimately delegitimizes the
state.

Other significant and serious repercussions of corruption are:

1. If allowed to take root in society, it can lead to a breakdown in social order and lives are affected
when ordinary people are prevented from receiving all the essential services that they are
entitled to.
2. It creates unfair competition and increases the cost of doing business.
3. Corruption is cancer that spreads rapidly all over the body.

CHARACTERISTICS OF CORRUPTION

A. Recipients and payers

B. Extortion
C. Lubricant of society
D. An ethical dilemma
E. Poverty alleviation
F. Culture
G. ‘Kindness among friends’

PREVENTION OF CORRUPTION

3 | Page
R.G. ALFONSO GOVBUSMAN 2nd SEM 2020-2021

Corruption in Singapore is under control. However, a clean system is not a natural state of affairs.
Corruption comes from weakness of human nature – greed, temptation, the desire to amass wealth or
to obtain business through unfair means. Even with harsh penalties, corruption cannot be eradicated
completely.

Below are some measures businesses and organizations can adopt to help prevent corruption in the
work place.

1. Clear Business Processes. Having defined workflows, clear directives on financial approving
authorities, and standard procurement instructions can help flag irregularities in a business or
organization.
2. Policy on Gifts and Entertainment. Gifts and entertainment are often offered in the legitimate
course of business to promote good relations. However, if it is too frequent or lavish, or done
with the deliberate intention to gain an unfair business advantage, such gifts and entertainment
can be tantamount to corruption, regardless of whether the recipient is able to fulfill the
request of the giver.
3. Declaration of Conflict of Interest. Conflict of interest occur when a personal interest or
relationships is placed before the business interest, and can lead to corrupt activities, such as
giving or accepting bribes. In order to safeguard the business interest, a declaration system that
is applicable to all levels of employees may be instituted.
4. Convenient Corruption Reporting System. The corruption reporting system is a key function to
control corruption and bribery risks, and can comprise a whistle-blowing policy or feedback
channel where staff can conveniently raise concerns and feel protected from being identified or
retaliated against. One way to do this would be by allowing reports to be filed anonymously
through a publicized email address or phone number.

EFFORTS TO CURB CORRPUTION THROUGH LEGISLATION

The Anti-Graft and Corrupt Practices Act criminalizes active and passive bribery, embezzlement,
extortion, abuse of office and conflict of interest in the public sector.

Bribery of public officials and trading in influence are also criminalized in the Anti-Red Tape Act or
ARTA. The Act forbids office-holders from accepting any gifts or material benefit in exchange for any
government permit or license.

The Anti-Money Laundering Act criminalizes money laundering and organized crimes.

The Act Establishing a Code of Conduct and Ethical Standards for Public Officials and Employees
formulates standards for the personal integrity and accountability of civil servants.

The Government Procurement Reform Act requires competitive and transparent bidding. Philippine
legislation does not contain any provisions on protecting whistleblowers who report on corruption.

4 | Page
R.G. ALFONSO GOVBUSMAN 2nd SEM 2020-2021

The Philippines has ratified the United Nations Convention against Corruption. Companies should note
that the legal anti-corruption framework in the Philippines is complicated and poorly enforced; there is a
lack of cooperation between law enforcement agencies, and officials are rarely prosecuted and
convicted for corruption crimes.

DISCUSSION QUESTIONS:

1. Explain what corruption is.

2. What are some factors that contribute to the commission of corruption?

3. Explain the characteristics of corruption.

4. Describe some ill effects of corruption.

5 | Page
R.G. ALFONSO GOVBUSMAN 2nd SEM 2020-2021

COMMENTS /FEEDBACK

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

6 | Page