Act of utilising, either directly or indirectly, one’s access to a position of power or knowledge to demand unmerited cooperation or compensation as a result of coercive threats.
Example: the issuing of threats to reveal damaging or embarrassing information (compromising photos) in order to coerce money or other goods or forms of cooperation out of the victim.
The offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust. Inducements can take the form of gifts, loans, fees, rewards or other advantages (taxes, services, donations, etc.)
Example: the bribe paid to a police officer to avoid a traffic fine. However, as repeated corporate bribe scandals have shown, bribes for public contracts can amount to millions of dollars or more.
An unequal system of exchanging resources and favours based on an exploitative relationship between a wealthier and/or more powerful ‘patron’ and a less wealthy and weaker ‘client’.
Example: The “bossism” system in the Philippines. Bosses enjoy discretionary powers over local funds and the appointment of officials in the local administration, and they can influence the awarding of concessions, contracts and franchises.
A secret agreement between parties, in the public and/or private sector, to conspire to commit actions aimed to deceive or commit fraud with the objective of illicit financial gain. The parties involved often are referred to as ‘cartels’.
Example: A recent example of a cartel was between Unilever and Procter & Gamble who were found guilty of price fixing washing powder in 8 European countries.
Situation where an individual or the entity for which they work, whether a government, business, media outlet or civil society organisation, is confronted with choosing between the duties and demands of their position and their own private interests.
Example: a staff member of the ministry of education who is taking part in the evaluation and selection of a supplier/contractor from a number of bidders one of which is operated by his relative or personal friends, or in which he or any such person has a financial interest.
Form of favouritism based on acquaintances and friendship relationships whereby someone in an official position exploits his or her power and authority to provide a job or favour to a friend, even though he or she may not be qualified or deserving.
Example: Old boys' networks of powerful figures from a similar background (e.g. prestigious universities) are often cited as examples for cronyism as members help progress each other’s careers in business and public life.
Data theft is the unauthorized copying or removal of confidential information from a business or government. It can take the form of ID-related theft (the theft of customer records) or the theft of a company’s proprietary information or intellectual property.
Example: For example, bribery to entice an employee to steal privileged information for someone else's private benefit could be categorised here.
When a person holding office in an institution, organisation or company dishonestly and illegally appropriates, uses or traffics the funds and goods they have been entrusted with for personal enrichment.
Example: Chung Mong Koo, former chairman of Hyundai Motors Co., was convicted in 2007 of embezzling US$ 110 million from company funds, a portion of which was allegedly used to pay off politicians and government officials.
Providing inside knowledge or expertise to aid a person or organisation to transfer and/or hide assets and evade the payment of due taxes.
Example: accountants and lawyers assisting individuals or corporations in transferring funds to tax havens.
A small bribe, also called a ‘facilitating’, ‘speed’ or ‘grease’ payment; made to secure or expedite the performance of a routine or necessary action to which the payer has legal or other entitlement.
Example: unaccounted payments to speed up the processing of entry visas or customs clearance may constitute facilitation payments.
The favouring of one group at the expense of another.
For example, the steering of government benefits or investments to a particular geographic region, at the expense of another in the country may constitute favouritism.
The act of intentionally deceiving someone in order to gain an unfair or illegal advantage (financial, political or otherwise).
During the 2004 Ukrainian presidential elections, reports of alleged fraud from election rigging (e.g. ballot box stuffing and voter intimidation) led to the annulment of the winning candidate’s victory and a run-off in which independent monitors declared the opposition leader Viktor Yushchenko the winner.
Giving of "gifts" with the expectation that the favour will be returned in a different way.
Example: a doctor is offered a free luxury trip to an exotic destination by a pharmaceutical industry representative, with the expectation of prescribing the company's new painkiller product to patients.
Lobbying is any activity carried out to influence a government or institution’s policies and decisions in favour of a specific cause or outcome. Not all lobbying activity is necessarily illegal or corrupt. Even when allowed by law, these acts can however become distortive if disproportionate levels of influence exist - by companies, associations, organisations and individuals.
Example: lobbying activities may be illegal for example when official registration and disclosure rules are not followed, while a lobbyist seeks to influence lawmakers in his favour.
Illicit political contributions are those that violate the applicable rules and regulations, e.g. party financing laws or donation disclosure rules.
Example: donations, gifts of property or services, advertising or promotional activities endorsing a political party.
Excessive regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents action or decision-making. It is usually applied to governments, corporations and other large organisations.
Example: in the anti-corruption context, red tape and inefficiency can be relevant inasmuch as bureaucratic obstruction is used to seek rents or corrupt payments.
A form of a secret commission usually paid from a company to an individual holding a position of influence, who has unfairly advanced the company's interests.
Example: a company secretly pays a public official 10% of the sum of the public contract that he just steered towards them.
Transparency is the characteristic of governments, companies, organisations and individuals of open disclosure of information, rules, plans, processes and actions.
Example: a relative lack of transparency is given where one ministry keeps all budget allocations secret, whereas other ministries disclose detailed information on their expenditure.
The ineffective, incompetent, careless or wasteful administration of public funds, programmes or institutions. Mismanagement can range from making poor decisions to breaking rules for personal gain.
Example: The first expenditures of a $1.8 million grant meant for low-income housing went instead to four large houses the housing authority had hoped to sell or rent to middle-income families. There were no takers, so the housing authority is stuck with them.
Illicitly using, selling, supplying, altering or leveraging information that is only accessible due to the holding of an appointed position within a public or private organisation.
Example: former McKinsey employees Rajat Gupta and Anil Kumar are suspected of having supplied a hedge fund manager with insider information about McKinsey clients and the companies' Gupta was a board member of, potentially for personal benefit.
Leveraging information, power, assets or funds that are held or accessible due to a Public Position of authority, for private gain.
Example: in Germany, there have been repeated controversies over public officials and parliamentarians using government-provided air transport for private travel.
The process of concealing the origin, ownership or destination of illegally or dishonestly obtained money by hiding it within legitimate economic activities.
Example: in 2005, Europe’s then largest money laundering operation was discovered in Spain, where an international network was accused of laundering € 250 million through real estate investments in the Costa del Sol. The money had been illegally obtained from drug trafficking, prostitution rings, international arms trading, kidnapping, blackmail and tax evasion.
Nepotism is a form of favouritism based on family relations.
Example: The appointment of family members (in particular where they lack adequate professional qualifications) to important public or private positions may constitute nepotism.
An individual, who moves (back and forth) between public office and private companies, exploiting his/her period of government service for the benefit of the companies they used to regulate.
Example: a member of Lockheed Martin’s Board of Directors earned his position shortly after retiring from the United States government, where he served as Under-Secretary of Defence for Acquisition, Technology, and Logistics. During his time in this government position, he approved the contract to purchase Lockheed Martin’s controversial F-22 fighter jets.
The solicitation, extortion or offering of sex as a form of payment or negotiating tool in the same way as money or gifts.
Example: The ALAC in Zimbabwe had a particularly harrowing case where female residents of a government-owned housing project were forced into having sex with the housing administrator, or be evicted.
The crime of stealing.
Example: a police officer stole the car of an ALAC client.
The selling of influence on officials, policy formulation or administrative decisions for private gain.
Example: a Hungarian case relates to a distortion in a tender procedure; the corrupter (a mediator) approached a bidding company and sold his influence as a public official over the Minister (the decision maker) who could influence the decision in choosing a tender.
Using money or other means to buy votes in electoral processes.
Example: A national survey of vote-buying in Brasil showed that in the presidential and legislative elections held in October-November 2002, about 3% of Brazilian voters were subjected to offers to sell their votes by candidates or go-betweens. Money was the most common offering (with 56%), followed by material goods (30%) and favours extended by the public administration (11%). In a similar survey in early 2001 (right after the municipal elections), 6% of the sampling voters said they were offered money in exchange of their votes.
Falsely or fraudulently making welfare claims.
Example: in 2010, a Tokyo family was suspected of fraud after claiming pensions for a man for 30 years after his alleged death. His 'skeletal remains' were found still in the family home.
Acts of aggression towards Whistleblowers as punishment to them for "telling secrets" "betraying" the corrupt or "squealing".
Example: whistleblowers or their relatives may lose their job, face legal action, intimidation, social exclusion or more subtle retaliation like targeted campaigns of sanctions and punishments for 'unrelated' things.
Refusing to release information that should be in the public domain.
Example: when a public organisation is refusing to disclose information, even if they are obliged by law to do so (often through Freedom of Information Legislation).
A corrupt transaction could involve an individual acting in their private capacity to obtain an illicit advantage. The client approaching the ALAC/ chapter may be an actor if they are one of the parties involved. They may for example have paid a bribe solicited from them.
An organisation funded, instated by and/or representing the government. If you choose this option you mean that a representative of this institution is involved in a potential act of corruption, or that a corruption problem exists within the institution.
A group formed with shared political goals or an individual who represents or seeks to represent the public and works in politics.
A commercial company or service provider that is majority owned and administered by the government, such as a local government-owned water utility, or a state-owned petroleum company.
A for profit corporation operating in the part of the economy that is not state controlled, independent from the government. A company can be:
Voluntary and community groups, non-governmental organisations, trade unions and other such organisations.
This includes multilateral and bi-lateral aid organisations like the UN system, aid donors and others.
This refers to the media sector, including print, radio, television and other news organisations.
Organised, criminal groups such as the mafia or individual criminals.