Group- 8, management ethics and curruption .pptx

Group- 8, management ethics and curruption .pptx

1. C orruption Corrupt conduct can take many forms including: taking or offering bribes- Bribery is the act of giving money, goods or other forms of recompense to a recipient in exchange for an alteration of their behavior (to the benefit/interest of the giver) that the recipient would otherwise not alter D ishonestly using influence Fraud - the crime of using dishonest methods to take something valuable from another person

2. Corruption Corruption is the misuse of public power (by elected politician or appointed civil servant) for private gain. Transparency International (2008, 02) understands corruption as “the abuse of entrusted power for private gain”.

3. Corruption Theft Embezzlement- The fraudulent conversion of another's property by a person who is in a position of trust, such as an agent or employee. Embezzlement is a type of financial fraud Misuse of information Nepotism - the unfair practice by a powerful person of giving jobs and other favors to relatives. Nepotism is favoritism granted to relatives

4. Level of corruption . 1. Grand level of corruption consists of acts committed at a high level of government that distort policies or the central functioning of the state, enabling leaders to benefit at the expense of the public good Petty level of corruption. refers to everyday abuse of entrusted power by low- and mid-level public officials in their interactions with ordinary citizens, who often are trying to access basic goods or services in places like hospitals, schools, police departments and other agencies. 3. Political corruption is a manipulation of policies, institutions and rules of procedure in the allocation of resources and financing by political decision makers, who abuse their position to sustain their power, status and wealth.

5. Levels  of corruption in the different sectors indicate where corruption can be encountered. The levels are defined as follows: Individual Corruption : Corruption that takes place primarily in relations between individual citizens and public officials and authorities. Business Corruption : Corruption that takes place primarily in relations between enterprises/companies and public officials and authorities. Political Corruption : Corruption that takes place in the higher echelons of public administration and on a political level.

6. Impact of corruption Corruption impacts societies in a multitude of ways. In the worst cases, it costs lives. The cost of corruption can be divided into four main categories: political, economic, social and environmental. Political Corruption . corruption is a major obstacle to democracy and the rule of law. In a democratic system, offices and institutions lose their legitimacy when they’re misused for private advantage. This is harmful in established democracies, but even more so in newly emerging ones. It is extremely challenging to develop accountable political leadership in a corrupt climate.

7. Impact of corruption Economical Corruption depletes national wealth. Corrupt politicians invest scarce public resources in projects that will line their pockets rather than benefit communities, and prioritise high-profile projects such as dams, power plants, pipelines and refineries over less spectacular but more urgent infrastructure projects such as schools, hospitals and roads. Corruption also hinders the development of fair market structures and distorts competition, which in turn deters investment.

8. Impact of corruption Social Corruption Corruption corrodes the social fabric of society. It undermines people's trust in the political system, in its institutions and its leadership. A distrustful or apathetic public can then become yet another hurdle to challenging corruption.

9. Impact of corruption Environmental degradation is another consequence of corrupt systems. The lack of, or non-enforcement of, environmental regulations and legislation means that precious natural resources are carelessly exploited, and entire ecological systems are ravaged. From mining, to logging, to carbon offsets, companies across the globe continue to pay bribes in return for unrestricted destruction.

10. SITUATION OF CORRUPTION IN NEPAL Bribery, embezzlement, fraud and extortion are main forms of corruption. All these forms of corruption are present in Nepal. Nepotism and favoritism are deeply-rooted in Nepalese culture. Not only petty but also grand political and bureaucratic corruption are being committed in Nepal . Similarly , the nature of systematic or state corruption along with isolation corruption is widespread .

11. SITUATION OF CORRUPTION IN NEPAL Almost all spheres i.e. the public, political and private sectors have been infected by corruption in Nepal. So, the cabinet, judiciary, civil service, politicians, police, army, non-governmental organizations, and the private sector etc. are seriously affected by the virus of corruption. Nepal’s low score in the Corruption Perception Index is evidence of the above-mentioned facts.

12. SITUATION OF CORRUPTION IN NEPAL Nepal is the 130 least corrupt nation out of 175 countries, according to the 2015 Corruption Perceptions Index reported by Transparency International. Corruption Rank in Nepal averaged 127.83 from 2004 until 2015, reaching an all time high of 154 in 2011 and a record low of 90 in 2004. Corruption Rank in Nepal is reported by the Transparency International.

13. International study and ranking Transparency international publish the corruption perception index each year. Based on expert opinion from around the world, the Corruption Perceptions Index measures the perceived levels of public sector corruption worldwide, and it paints an alarming picture. 2014 year's index includes 175 countries and territories . 64% of the countries score below 50, on a scale from 0 (highly corrupt) to 100 (very clean ). Denmark, New Zealand, Finland, and  Sweden are the four least corrupt countries in the world.

14. International study and ranking Denmark scored 92, New Zealand 91, Finland 89, and Sweden 87.  The US is listed as the 17th-least-corrupt place . Somalia , North Korea, Sudan, and Afghanistan are the most corrupt India scored 38, N epal 29, China 36 Nepal is in the 126 th position out of 175 countries In 2013 N epal had scored 31 Average score of Asia Pacific region is 43/100

15. Sector Perceived To Be The Most Corrupt – The Regional Picture Countries Three Most Corrupt Sectors Bangladesh Police (39%) Health (25%) Land Administration (18%) India Police Health Power Nepal Land Administration (50%) Customs (41%) Police (24%) Pakistan Police (28%) Power (15%) Taxation (13%) Sri Lanka Police (39%) Health (5%) Education (4%) Source: Regional Survey Report on Corruption in South Asia, Transparency International, Dec 2002

16. Corruption control mechanism ANTI-CORRUPTION INSTITUTIONAL ARRANGEMENTS IN NEPAL Commission for the Investigation of Abuse of Authority Office of the Attorney General Court Judicial Council National Vigilance Centre Army Investigation and Army Special Court Other Anti-Corruption Institutions

17. A. C ommission for the Investigation of Abuse of Authority (CIAA) CIAA is a supreme constitutional body dedicated to corruption control C arries out inquiries and investigations into corrupt and improper conducts involving public officials. has the authority to investigate all officials from the Prime Minister to low-rank public servants. Based on the findings, the Commission may file a case against allegedly corrupt individuals in the law court. I t also promotes social, cultural awareness of the evil of corruption and encourages institutional reform to create anti-corruption environment Awareness activities consist disseminating information through audio-visual ads, posters, pamphlets, booklets, newsletters, calendars, stickers, radio and television programs

18. B. Office Of Attorney General O ne of the most important constitutional bodies under the Constitution of Nepal H as been empowered to make the final decision whether or not to initiate proceedings in any case on behalf of the government in any court or judicial authority G overnment attorneys have been assigned to the CIAA to carry out investigation and prosecution of corruption cases . CIAA has delegated its power to 75 District Attorney Offices and 15 Appellate Attorney Offices.

19. C. Court Corruption cases are adjudicated by the Special Court . The Special Court is empowered to adjudicate corruption cases filed by the CIAA at trial level. The Special Court has the status of an appellate court so appeal jurisdiction of corruption cases goes to the Supreme Court. Similarly , trial jurisdiction over the charge sheet of the Judicial Council against judges rests in appellate courts.

20. Court Cont.. 1. Special Court The Special Court is entrusted with the jurisdiction to hear corruption cases filed by the CIAA. Special Court judges are deputed from the Judicial Council for a certain period . 2. Supreme Court The Supreme Court has appellate jurisdiction over the verdicts of the Special Court. The Supreme Court has laid down several precedents in corruption cases within appellate and writ jurisdiction.

21. D. Judicial Council The Judicial Council is an independent constitutional body headed by the Chief Justice. The Council is responsible for recommendation and appointment of all the judges except the Chief Justice . It has also power to investigate and prosecute the judges of District Courts and Appellate Courts in the charge of corruption. The Council also monitors the observance of the Code of Conduct of Judges. In fact, the council has an important role in preventing judicial corruption and irregularities.

22. E . National Vigilance Centre The National Vigilance Centre is established under the Corruption Prevention Act. The Centre is under the Prime Minister and headed by secretary-level officials of the Nepal government. The Centre has no investigation authority regarding corruption. The Centre is empowered to take only preventive and promotional measures against corruption.

23. F. Army Investigation and Army Special Court The CIAA has no jurisdiction over corruption cases related to the army. The Army Act provides that any crime of corruption committed by army staff is investigated and prosecuted by a three-member committee headed by the Deputy Attorney General. Such cases are adjudicated in a three-member Special Military Court which is headed by an Appellate Court Judge who is appointed by the government at the recommendation of the Judicial Council. Very few cases have been investigated and adjudicated within these mechanisms .

24. G. Other Anti-Corruption Institutions Auditor general Revenue Leakage Investigation Department Anti-Money Laundering Department Parliamentary Committee Public Procurement Monitoring Office Appellate Government Attorney Office District Government Office Regional Administration Office District Administration Office

25. Anti-Corruption Law Corruption Prevention Act, 2002 Commission For Investigation of Abuse of Authority Act, 1991 Judicial Council Act, 1991 Special Court Act, 2002 Revenue Leakage (Investigation and Control) Act, 1995 Good Governance (Management and Operation) Act, 2007 Anti-Money Laundering Act, 2008 Rights to Information Act, 2007 Public Procurement Act, 2007 Army Act, 2006

26. Relation with CG strong relationship exist between the level of corruption in rapidly developing economies and corporate governance processes therein. in countries with high levels of corruption, firms lack efficient corporate governance practices . Similarly, countries with deficient corporate governance practices and low levels of compliance to these standards breed corruption leading to a wide range of transparency dilemmas enforcing disclosure and reporting requirements in a continuous and consistent manner will be the only way to fight against corruption

27. Relation with CG Cont.. disclosure not only increases transparency, but also increases firm value which in turn increases stock prices and reduces agency costs. Therefore increased disclosure levels may lead to increased credibility and less corruption

28. C onclusion Even though corruption control agencies have important roles to play in combating corruption, good governance and management ethics with a serious commitment to root out corruption, is necessary to stimulate economic growth and employment opportunities, without which it is difficult to achieve a corruption free society. The challenge to the society is to tackle the problem of corruption emanating mostly from the political patronization of corrupt and criminal elements. The civil society can play a constructive role in the prevention of corruption and make the people aware of nature and extent of corruption, its consequences in the social and economic fabric of the society, and its negative impact on the moral values of the humanity .

29. THANK YOU!!