Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Purpose –This paper aims to discuss an innovative approach to eliminating bribery in multinational
corporations.In particular, the concept of using incentivesystems to ﬁght corruption is assessed.
Design/methodology/approach –Based on the analysis of ten formal and ten informal expert interviews
with both prevention experts and corrupt employees, a combination of bonus-malus payments is developed.
Findings –A performancematrix could be used to incentivize bothcompliance and productivity.
Research limitations/implications –This study’sﬁndings are limited to the perspectives of 20
interviewees. Hence, it is possiblethat a study with a larger sample conducted in different countries or at a
differenttime would have led to different results.
Practical implications –The identiﬁcation of gaps in existing anti-bribery compliance mechanisms is
meant to provide compliance ofﬁcers and legislators with valuable insights into how undesirable behavior
could be prevented.
Originality/value –It is found that eliminatingthe wrong incentives and establishing the right ones could
make signiﬁcantstrides in advancing the ﬁght against bribery.
Keywords Compliance, Bribery, Corruption
Paper type Research paper
Corruption is a global problem. It can be observed in both developed and developing
countries at different stages of economic development and under various political systems
(Misangyi et al., 2008, p. 767; Ehrlich and Lui, 1999, p. 270). In all instances, however,
corruption poses an obstacle to sound policymaking and economic growth (Gupta et al.,
2000, p. 3). Consequently, governments around the world are making an effort to combat
bribery. Until the end of the 1990s, bribing foreign public ofﬁcials had been common
practice. Through the intergovernmental Council of the Organization for Economic Co-
operation and Development’s (OECD) Convention on Combating Bribery of Foreign Public
Ofﬁcials in International Business Transactions (hereafter, the OECD Anti-Bribery
Convention; OECD, 1998)–which was signed in December 1997 and later bolstered by the
principles for managing ethics in the public service (OECD, 2000), as well as the guidelines
for managing conﬂicts of interest in the public sector (OECD, 2003)–Western countries
attempted to outlaw facilitation payments (Kim, 1999, p. 259). Previously, bribes paid by
corporations had evenbeen tax deductible in some Western countries, such as Germany.
As a result of the OECD Anti-Bribery Convention,countries all around the world teamed
up in an effort to combat this particular form of corruption.In particular, countries began to
outlaw the bribery of foreign public ofﬁcials through their domestic legislation and
established severe sanctions, ranging from large ﬁnes to imprisonment, for violations.
No external research funding has been received for this study.
Journalof Financial Crime
Vol.25 No. 4, 2018
© Emerald Publishing Limited
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