Private virtues, public vices: social norms and corruption

Abstract

Purpose – Corruption has traditionally been associated with an absence of pro-social norms such as trust and altruism. This paper challenges this view by examining market corruption – one-shot exchange transactions between strangers in the shadow of the law. The paper aims to propose that in the absence of repeat interactions and legal remedies to prevent contractual violations, acts of market corruption will require strong norms of generalized trust and altruism. As such, pro-social norms facilitate, rather than mitigate, market corruption. Design/methodology/approach – The paper utilizes meta-analysis to examine the relationship between pro-social behavior in economic experiments and prevailing corruption levels. Findings – The results from meta-analyses of both trust- and dictator game experiments show positive, significant relationships between pro-social norms and prevailing corruption levels. Research limitations/implications – The findings of the paper suggest the need for further research into the...