Class Notes (1,100,000)
CA (620,000)
Ryerson (30,000)
LAW (1,000)
LAW 533 (50)
Lecture 12

LAW 533 Lecture Notes - Lecture 12: Embezzlement, Royal Canadian Mounted Police, Active Measures


Department
Law and Business
Course Code
LAW 533
Professor
Kernaghan Webb
Lecture
12

This preview shows half of the first page. to view the full 3 pages of the document.
Law 533 Guest Lecture Jennifer Egsgard Notes
Corruption: misuse of public power for private profit, or misuse of entrusted power for
private gain. Includes bribery, embezzlement and laundering of funds. 3 types:
1. Grand corruption (highest levels of a country, benefit of an official at the expense
of the public)
2. Petty corruption (paying to avoid a long wait at a hospital)
3. Political Corruption (sustaining their power, wealth and status)
Social impacts: political
-Obstacle to democracy
-Undermines rule of law
-Offices/institutions lose legitimacy
Social impacts: economic
-Deplete national wealth
-Misallocation of scarce resources (money not spent efficiently to benefit public, &
projects may not be selected in response in community needs)
-Hinders development of fair market structures/distorts competition/deters
investment
Social impact – also erodes social fabric/ encourages apathy
-Also environment degradation
How does corruption harm corps?
-Macroeconomic – reduces efficiency by distorting competition and depriving buyers of
economically superior products at the most competitive prices. For example, if you want
to spend a lot on R&D then you develop the product and it is amazing. But if another
product gets selected because there was a bribe involved, it discourages innovation.
-Destabilizes political process/promotes conflict- if companies are paying bribes to pay
for permits, the decision making process more focussed on how the person issuing the
permit can benefit rather if its safe/beneficial for the community.
-Taints corporate culture. Every corp. should be operating transparently, continuous
disclosure etc. bribes go against this.
-Cannot hold bribe-takers to account. Once engaging in bribery, your legal rights are
diminished.
Anti-corruption and csr
-anticorruption standards can have positive impact on other csr goals. Engaging in csr
activities without protecting against corruption can result in poor results, loss of goodwill
and legal liability. If a company is trying to implement and ethical supply chain, the
You're Reading a Preview

Unlock to view full version