Paper info: CORRUPTION: Do we skip unpleasant issues of business interaction?
CORRUPTION: Do we skip unpleasant issues of business interaction?
Helsinki School of Economics
Place of Publication
The paper was published at the 16th IMP-conference in Bath, U.K in 2000.
Within the IMP-group and in related research, emphasis has been on long-term businessrelationships and cooperation. Although we do acknowledge competition as well and note thatrelationships may become liabilities as well as assets, we largely seem to forget personalinterests and opportunism in business behavior. We rather focus on how social capital mayenhance business relationships. At the same time, business press reports about corruptionworldwide. Especially in the Russian, and to some extent more generally Eastern Europeancontext corruption has become the main characteristic of emerging markets. Analysts as well asbusinessmen are struggling to cope with corruption and opportunism there, and seem to lacktools for it. The paper discusses social capital and its relation to arm's-length relationships and tobusiness relationships. Business norms in different countries is discussed as well. The paperraises the need for more explicit analysis of corruption when analyzing interaction andrelationships in business markets.