Moralisches Verhalten in einem korrupten Markt: Anreize und Erfolgsfaktoren anhand einer Fallstudie aus Argentinien / Moral behaviour in a corrupted market: Incentives and success factors – a case study from Argentina

Lucke Eva Maria and Lütge Christoph

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2011, vol. 62, issue 1, 297-320

Abstract: Since the latest corporate corruption scandals, the private sector is asked to get involved in developing and implementing anti-corruption practices. Particularly in highrisk regions and sectors, businesses are trapped in dilemmas where no single firm can escape the corruptive run. The solution is combating bribery collectively. However, the problem remains of how to seduce competitors to commit to collective action. An adequately designed collective anti-corruption pact may make business perceive the inherent, but intangible benefits deriving from collective action, such as the reduced cost of doing business, a level-playing field, a discussion forum, or enhanced reputation, and change the incentive set of the situation. Yet, anti-corruption pacts are only as effective as their enforcement. The firms’ commitment must be followed by a credible implementation of written stipulated principles. Herein, collective action encounters endogenous, process-inherent challenges, as well as exogenous, context-related challenges. As long as no credible implementation of the anti-corruption pact is reached, business will lack public credibility and recognition. At the same time, the collective effort needs to be backed by an enabling environment that rewards the companies’ attempts to fight corruption. This paper investigates these challenges for collective action enforcement using the example of a private sector anti-corruption pact among pipe manufactures in Argentina and identifies crucial factors for success. Lessons learned from the failed Argentinean experience include the importance of commitment and trust of the intending signatories, the certification of the activities combined with an independent audit, as well as the promotion of the initiative to entice new members. But an enabling environment, in terms of an apt political and economical framework and a civil society, is also necessary. In the end, to make collective action sustainable, it is about getting the incentives right.

Date: 2011
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DOI: 10.1515/ordo-2011-0113

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