Corruption in Brazil: Forms, Effects and Strategies to Eliminate it

BUSINESS ETHICS
AND
SUSTAINABILITY

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Contents
INTRODUCTION.................................................................................................................................2
Corruption in Brazil...........................................................................................................................2
Different forms of corruption in Brazil..............................................................................................3
Effects of corruption..........................................................................................................................4
Strategies implemented by the government of Brazil for eliminating corruption...............................5
CONCLUSION.....................................................................................................................................5
REFERRENCES...................................................................................................................................6
INTRODUCTION
All around the globe corruption has become a very important issue (Funderburk, 2016). It is
increasing day by day and is affecting the system of the nation. This is present in the
bureaucracies in many parts of the world and is acting like a termite to the nations.

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Corruption is highly prevalent in the developing nations like Brazil. This country is one of the
fastest developing nations all around the world but is highly affected by the corruption. There
are many forms of corruption and governments in these countries are trying hard to remove it.
This is not an issue that is related to any specific departments rather it is present at every level
of organisation. Larger part of the population is affected by this problem and is hampering the
development of the nation. This report highlights the various forms of corruption present in
Brazil. It also showcases the strategies that can be adopted by the government to eliminate
this problem.
Corruption in Brazil
Corruption is understood to be as the form of dishonesty undertaken by the individuals
provided with the responsibility or position of authority. This is done with a motive of using
their authority to acquire some kind of personal benefits. The definition of corruption varies
in various regions of the world. Corruption is highly prevalent in oligarchies, kleptocracies,
mafia states and mafia states.
In Brazil corruption exist at every society’s level from the higher officials in the government
to the lowest municipal level members (Power and Taylor, 2011). Operation car wash
revealed that the central government officials take use of their public office’s prerogatives for
activities for rent. It ranged from political support to illegal funds from state owned
organisations for individual gains. ‘Mensalao’ is practiced in Brazil in which taxpayers fund
is transferred as monthly allowances to the congress members from different political parties
for their votes and help in congress. It was found in the operation that politician were using
state-owned and state run oil company Petrobras to earn hundreds of millions of reais for
themselves as well as political campaigns. In this regard there was a huge protest that
conducted back in the year 2013. Almost all the kinds of corruption exist in Brazil namely
cronyism, nepotism and clientilism. Even the judiciary did not remain unaffected as members
of Supreme Court were found to be mingling with politicians. Bribery is a common form of
corruption in the police system throughout the Brazilian bureaucracy (Power and Taylor,
2011). Popular form of corruption that exists in Brazil is embezzlement of public funds
through overbilling. This is highly seen when the contracts is given to the private companies.
For example in the infrastructural construction like building roads etc. this is the most
common form of corruption. The president of Petrobras estimated that company has lost $2
billion US.