Helping Global Managers Estimate Host-Country Corruption Levels and Institutional Maturity

Abstract

Currently available measures of corruption levels in countries are based on surveys and include some degree of subjectivity. This paper describes a methodology (to be used together with and in support of survey-based methods) that uses managerial tools to increase objectivity when estimating ethical standards of public institutions and intensity of corruption in autonomous jurisdictions. The methodology is based on a systemic analysis of institutions and of public officials selected to positions of power. In this analysis the hypothesis that non-compliance by public officials is commensurate with non-compliance by the broader population is tested. The methodology examines corruption from the point of view of the host jurisdiction’s ethical and legal framework and examines instances of non- conforming behavior in light of local customs, cultural norms, and legal practices. The case of Brazil illustrates the methodology and provides an example of its application including suggestions to lower corruption levels. Advantages and limitations of the methodology are identified and conditions for its use are discussed.