Abstract

In this article, I identify two kinds of corruption: first-order and second-order corruption. First-order corruption is the abuse of power by either individuals or groups for private gain given a system of existing rules or norms, whereas second-order corruption is the abuse of power by individuals or groups in that they change the existing rules or norms to benefit from them unfairly. I argue that second-order corruption has certain unique characteristics that make it harder to identify and more harmful for both the corporation and society in the long run, and conclude by suggesting some ways to deal with it.

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