Corporate Governance as a Tool for Reducing Corruption in Companies
Keywords:
Corporate governance, corruption, transparency, auditingAbstract
Corporate governance is an essential tool for mitigating corruption in companies, especially in contexts where law enforcement is weak. This article reviews the literature on how robust governance practices, such as the adoption of independent boards of directors, regular audits and compliance policies, which increase transparency and reduce opportunities for corrupt behavior. Chen et al. (2010) and Claessens & Yurtoglu (2013) show that effective governance aligns the interests of managers with those of shareholders, while Baldini et al. (2018) and Ioannou & Serafeim (2012) highlight the importance of information disclosure. In emerging markets, governance reforms promote investor protection and accountability, as indicated by Chong & López-de-Silanes (2007). The restructuring of Siemens following corruption scandals shows how the implementation of good governance practices can restore legitimacy and prevent future infringements. To combat corruption, it is vital that companies prioritize corporate governance as part of their organizational strategy, collaborating with public policies that encourage transparent and ethical practices.
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