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The organization of anticorruption: Getting incentives right!

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  • Graf Lambsdorff, Johann

Abstract

Governments and private firms try to contain corruption among their staff mostly in a top-down, rules-based approach. They limit discretion, increase monitoring or impose harsher penalties. Principles-based, bottom-up approaches to anticorruption, instead, emphasize the importance of value systems and employee's intrinsic motivation. This embraces the invigorating of social control systems, encouraging whistle-blowing, coding of good practice and alerting to red flags. This paper investigates how some top-down measures run counter to bottom-up contributions. Examples range from penalties imposed with zero-tolerance, debarment or the nullity of contracts. While top-down elements are indispensable for containing corruption they must be designed well in order to avoid discouraging the bottom-up endeavors.

Suggested Citation

  • Graf Lambsdorff, Johann, 2008. "The organization of anticorruption: Getting incentives right!," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-57-08, University of Passau, Faculty of Business and Economics.
    • Handle: RePEc:zbw:upadvr:v5708
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    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. William Easterly, 2008. "Institutions: Top Down or Bottom Up?," American Economic Review, American Economic Association, vol. 98(2), pages 95-99, May.
    3. Arlen, Jennifer, 1994. "The Potentially Perverse Effects of Corporate Criminal Liability," The Journal of Legal Studies, University of Chicago Press, vol. 23(2), pages 832-867, June.
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    Cited by:

    1. Lucke Eva Maria & Lütge Christoph, 2011. "Moralisches Verhalten in einem korrupten Markt: Anreize und Erfolgsfaktoren anhand einer Fallstudie aus Argentinien / Moral behaviour in a corrupted market: Incentives and success factors – a case stu," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 62(1), pages 297-320, January.

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    More about this item

    Keywords

    Corruption; whistle-blowing; contract penalties; debarment; nullity;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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