Corrupt International Exchanges: Who Expects What of Whom?

• In Event: Experiments in Information and Accountability

Abstract

By prohibiting the payment of bribes to foreign public officials, anti-bribery laws shape the risks facing individual companies in the context of international business. However, the perceived risk of engaging in bribery varies depending on beliefs about the descriptive and injunctive norms in the business environment in which one operates. Building on prior research finding that individuals from different countries have different norms relating to corruption, we test whether individuals are more or less willing to engage in bribery depending on their own country of origin and the country of origin of the other party to the transaction. We use methods derived from experimental economics and subjects based in typical ‘investor’ (UK, United States, China, Germany) and ‘destination’ (six countries in sub-Saharan Africa and one in Asia) countries. Our results provide insights into corruption risks in international business and could inform the work of policy makers, law enforcement and corporate compliance functions.

Author

• Elizabeth David-Barrett, University of Sussex