Posted: December 3rd, 2022

WRITTEN ASSIGNMENT: Corruption Perception and Global Business

instructions:
WRITTEN ASSIGNMENT: Corruption Perception and Global Business
For this module you will complete a written assignment based on research you will perform on Global Ethics and Business Practices. This is the scenario you will base your assignment on:

You work for a pulp and paper manufacturing company.

1.Using the Corruption Perceptions Index on Transparency International’s website: https://www.transparency.org/en/cpi , discuss how you would advise your senior management reviewing the possible setup of operations in either Latin America or Africa. Remember, that in considering these two possible locations there may be some individual countries that are better suited than others, relative to the corruption index. You may want to consider selecting the best and worst in each region.

2.Which countries would suggest further research and which countries would pose ethical challenges?

3.How important do you think the Corruption Perceptions Index is to your business objectives?

4.Should it be a factor in determining where you set up operations?
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Corruption Perception and Global Business
Corruption Perception Index
The corruption perception index shows that Latin America has high scores than Africa. The data shows that the corruption perception in Africa is high compared to Latin America. It would thus be recommendable to set up business in Latin American compared to Africa. The index shows that some countries, such as South Sudan and Somalia, have the worst corruption index (Transparency International, 2020). Investing in Africa would pose some challenges that can undermine the productivity of the business.
Best Country
African countries, such as Somali and South Sudan, are places that require additional research. It is necessary to research the corruption index and why African countries have the lowest index (Transparency International, 2020). For instance, it would be essential to understand what makes life-threatening Somali shows that the index is not that severe. On the other hand, Latin America has a better score in the corruption perception index (Transparency International, 2020). A study on the worst country would ensure that there is additional enough on the country with the highest corruption issue.
Further research is necessary to understand if the corruption index is similar to that of the neighboring countries. For example, countries with dictatorship or failed government systems are likely to experience high corruption cases (Transparency International, 2020). The consideration means that countries with high corruption incidences can experience political unrest, inflation, and low market prices. The factors would undermine the capacity of a business to succeed. African countries would pose ethical challenges to a business since corruption cases would lead to bribes and extortion by government agencies.
Importance of the Corruption Perception Index
The index is crucial for the business objectives since it helps companies to determine whether they can achieve their business objectives or not. For example, the index shows if government officials are likely to ask for bribes. It helps a business to determine the level of friendliness to foreign companies. Another benefit is to determine if a business can thrive in the years to come. For example, investing in war-torn countries such as South Sudan or Somali would eventually lead to failure (Transparency International, 2020). However, a favorable climate would create opportunities that would guarantee business success in the future. Therefore, the current index is crucial in understanding if the environment is favorable for business.
Determining Factor
The CPI is a determining factor of where to set up business operations. The best option, according to the available options, is North America. It has lower corruption incidences, which portrays the government’s commitment to maintaining a healthy environment. High corruption cases show a lack of government commitment to promoting a favorable climate for business (Transparency International, 2020). For example, corrupt government officials can take money meant for the construction of roads for personal use. The impact would lead to underdeveloped regions that do not attract foreign investors. For instance, North America has more foreign investors compared to Somali. Setting up a business in a corrupt environment would mean the business has no hopes for future growth (Transparency International, 2020). The reason is that the market can experience inflation, price wars, and political unrest. For example, Egypt and South Africa had recent violence that disrupted business activities in the region. The best place to invest according to the CPI is North America since adverse incidences that can undermine business performance are low.

References
Transparency International. (2020). Corruption Perceptions Index. Transparency International. Retrieved from https://www.transparency.org/en/cpi/2019

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