New Podcast Episode, Featuring Alison Taylor

A new episode of KickBack: The Global Anticorruption Podcast is now available. In this episode, host Dan Hough interviews Alison Taylor, a Clinical Associate Professor at NYU Stern School of Business and the author of the recently published book, Higher Ground: How Business Can Do the Right Thing in a Turbulent World. The interview, like the book, focuses on the topic of business ethics, including how the corporate sector addresses issues relating to bribery and other forms of corruption. In the interview, Alison first talks about her career path, which began focused on conducting investigations into corruption by businesses, and then broadened out to consider issues of corporate responsibility and business ethics more broadly. She then describes the impact of international anti-bribery laws on businesses, and raises some questions about the corporate compliance regimes these laws have created. You can also find both this episode and an archive of prior episodes at the following locations: KickBack was originally founded as a collaborative effort between GAB and the Interdisciplinary Corruption Research Network (ICRN). It is now hosted and managed by the University of Sussex’s Centre for the Study of Corruption. If you like it, please subscribe/follow, and tell all your friends!

Guest Post: The Characteristics of Corrupt Corporate Cultures

Alison Taylor, the Director of Advisory Services for BSR (a global non-profit organization focused on sustainability) contributes the following guest post:

Despite all the investment in corporate anti-bribery compliance programs, supported by a lucrative consulting industry dominated by investigation companies and accounting and law firms, violations of anti-bribery laws, and firms’ own compliance policies, remains widespread. Why? The usual explanations focus on the external environment (“That’s just the way they do business over there”) or on “rogue employees,” but tend to neglect issues of “organizational culture”—how groups and teams behave when they might have a corruption problem. Yet organizational culture, structures, and incentives have been powerful factors in causing professionals to indulge in systemic corrupt practices.

But what, exactly, are the cultural drivers of corruption? What do a “culture of compliance” and its converse, a “culture of corruption,” actually look like? To find out I conducted in-depth, qualitative interviews with 23 experts on anti-corruption and corporate ethics. My questions were simple: What is the culture like in a corrupt organization? Can we generalize about leadership, decision-making, incentives, values, and behavior in corrupt organizations? Can we use these findings to understand the characteristics of an ethical culture?

The answers were revealing, and strikingly consistent in identifying the characteristics of organizational cultures prone to corruption. These traits, which I will summarize below, don’t guarantee that an organization will be corrupt — but the more of these characteristics are present, the more vulnerable an organization is. Continue reading