Corruption

• In simplest way corruption can be

defined as any type of moral
degradation irrespective of
monetary/non-monetary nature.
• Most of the time corruption is
related to money laundering, kick-
backs, nepotism, nexus and various
other means where the authority is
used for narrow self interest.
Basic Aspects about Corruption
• Corruption involves deliberate deviation
from ones duty. It can be direct or
indirect but needs to be conscious. It is
done for personal gain. It is done by
violating some commonly accepted
norms of behaviors.
Causes of Corruption
• High levels of market and political
monopolization.

• Low levels of democracy.

• Weak civil participation and low political
transparency.
• High levels of bureaucracy and
inefficient administrative structures.

• Low freedom of expression and freedom

of press.

• Large ethnic divisions and regionalism.

• Gender inequality.
• Political instability.
• Low levels of health and education
security measures etc.
Modes of Corruption
1. Bribes
• One kind of corruption is when people
are expected to pay bribes in order to
get the service
2. Conflict of Interest
• Situation where an individual or the
entity for which they work, whether a
Govt., business, media outlet or civil
society organization, is confronted with
choosing between the duties and
demands of their position and their own
private interests.
3. Nepotism
• Form of favoritism based on
acquaintances and familiar relationships
whereby someone in an official position
exploits his or her power and authority to
provide a job or favor to a family member
or friend, even though he or she may not
be qualified or deserving.
4. Patronage
• Form of favoritism in which a person is
selected, regardless of qualifications or
entitlement, for a job or Government
benefit because of political affiliations or
connections.
5. Procurement
• Procurement/Contracting-out is
mechanism by which the government
strives to deliver public good and
services by using the technological and
capital resources of private market
players.
• This mechanism maligned with the
business-bureaucratic nexus leads to
large scale corruption and loss of public
money and resources.
Whistle Blowing
• Whistle blowing occurs when an
employee or former employee conveys
information about a significant moral
problem to someone in a position to take
action on the problem and does so
outside approved organizational
channels (or against pressure).
• Whistle blowing is the act by an
employee of informing the public or
higher management of unethical or
illegal behaviour by an employer or
supervisor. It is morally permissible for
engineers to engage in whistle blowing
when the following conditions are met:
1. The harm that will be done by the
product to the public is
considerable and serious.
2. Concerns have been made known to
the superiors and got no satisfaction
from their immediate superiors, all
channels have been exhausted within
the corporation including the board of
directors.
3. The whistle blowers must have
documented evidence that would
convince the reasonable, impartial
observer that his or her view of the
situation is correct and the company
position is wrong.
4. There must be strong evidence that
releasing the information to the
public would prevent the projected
serious harm.
• In open whistle blowing, individuals
openly reveal their identity as they
convey the information. Anonymous
whistle blowing, by contrast, involves
concealing one’s identity.
Types of Whistle Blowing
• Internal whistle blowing : Occurs when
an employee goes over the head of an
immediate supervisor to report a
problem to a higher level management.
• Or, all levels of management are
bypassed, and the employee goes
directly to the president of the company
or the board of directors. It is kept
within the organization.
• Anonymous whistle blowing :
Occurs when the employee who is
blowing the whistle refuses to
divulge his name when making
accusations.
• Acknowledged/Open whistle blowing :
Occurs when the employee puts his
name behind the accusations and is
willing to whistle blowing the scrutiny
brought on by his accusations.
• External whistle blowing : Occurs when
an employee shares the information
with an outsider or himself gives the
information outside the organization. He
does not follow the formal procedure
within the organization.
• This Whistle blowing can be very bad
from a organization’s point of view
because it can lead to distrust,
disharmony, and an inability of
employees to work together.
Moral Guidelines for Whistle Blowing
• 1. The actual or potential harm reported
is serious.

• 2. The harm has been adequately

documented.

• 3. The concerns have been reported to

immediate superiors.
4. After not getting satisfaction from
immediate superiors, regular channels
within the organization have been used
to reach up to the highest levels of
management.
5. There is reasonable hope that
whistleblowing can help prevent or
remedy the harm.
When should Whistle Blowing be
Attempted?

• Whistleblowing should be used based on

following criteria in the following order:

• Need : When the corruption starts

affecting organization’s interest.
• Proximity : If the employee is closer to
the boss.

• Capability : If the employee is ready to

face the consequences.

• Last resort : When there is no

alternative left.
Whistle Blower Protection Act
• This is the act of parliament of India
which equips a person, to report against
corrupt and illegal activities in the
government or private organization to
the higher authorities concerned. This
act ensures punishment for false or
frivolous complaint.
The important features of this act are as
follows:
• The act seeks to protect whistle blowers,
i.e. persons making a public interest
disclosure related to an act of
corruption, misuse of power, or criminal
offense by a public servant.
• Any public servant or any other
person including a non-
governmental organization may
make such a disclosure to the
Central or State Vigilance
Commission.
• Every complaint has to include the
identity of the complainant.

• The Vigilance Commission shall not

disclose the identity of the complainant
except to the head of the department if
he deems it necessary.
• The act penalizes any person who has
disclosed the identity of the
complainant.

• The act prescribes penalties for

knowingly making false complaints.
(1) What is ‘Nepotism’?
(a) Undermining the morale of
workers
(b) Harassment of women workers
(c) Being autocratic in decision-
making
(d) Hiring friends or relatives and
showing favouritism in work.
(2) Consider the following steps for an individual regarding
preparation for disclosure of unethical behaviour:
1. Study and document the facts and formulate a plan for an
appeal.
2. Take up the matter with higher management.
3. Discuss the matter with immediate supervisor.
4. If the internal appeal does not resolve the conflict, then he
should notify the company that he intends to continue
with an external reviews of the problem.
What is the correct sequence of order of the above steps?
(a) 2, 3, 1 and 4 (b) 1, 3, 2 and 4
(c) 3, 2, 4 and 1 (d) 1, 2, 3 and 4
(3) When should whistle blowing be attempted?
1. There must be a clear and great harm that can be avoided.
2. The whistle blower must be in a clear position to report on
the problem.
3. The whistle blower must have a reasonable chance of
success in stopping the harmful activity.
4. The whistle blower feels that all other lines of action
within the content of the organization have been
explored and shut off.
Select the correct answer using the codes given below:
(a) 1, 2 3 and 4 (b) 1, 2 and 4 only
(c) 1, 3 and 4 only (d) 2 and 3 only
(4) A Whistleblower is someone who?
(a) Whistles classical music
(b) Informs on any illegal, unethical or
corrupt activity going on in the
organisatioin
(c) Is adept in whistling
(d) Boasts about himself/herself
Answer Key

1 D

2 B

3 A

4 B