Business & Government Corruption: Analysis & Reduction Strategies

This report identifies corruption in business and government as an international creative opportunity, emphasizing the abuse of power for private gain. It explores the demand for preventing corruption, driven by bribery, kickbacks, and nepotism, and highlights innovative approaches like automation in tax collection. The feasibility and attractiveness of reducing corruption are discussed, focusing on value creation through honesty and trust. The report employs three analytical tools: the DIFA model (Demand, Innovation, Feasibility, Attractiveness), the Business Model Canvas, and the Market Funnel, to evaluate the opportunity. The reasons for selecting these tools are explained, emphasizing their ability to originate, develop, and evaluate the opportunity area effectively. The report concludes by touching upon leadership approaches and offering recommendations for future action, aiming to provide a comprehensive understanding of corruption and its potential solutions.

Corruption in business and government 1
Enterprise / Corruption in business & government

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Abstract
Corruption in business can destroy an entire system of operating the task in an adequate manner.
This paper is related to the method of reducing the corruption in enterprises and government. The
corruption is increased in the world in the form of bribery, kickbacks, nepotisms and cronyism,
and one wants to know the reason behind this corruption. The technology has been developed in
at mature level and almost every companies using latest technology to operate its function. The
use of latest technology in the context of reducing the corruption is identified in this paper. There
are various models that discussion is made for elimination of corruption within enterprises.

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Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Identification of an opportunity.......................................................................................................4
Effective use of 3 creative or analytic tools.....................................................................................6
Explanation of why these tools were selected.................................................................................9
Credible plan for the implementation of the opportunity..............................................................10
Leadership approach for the opportunity, in relation to identified developmental models...........12
Conclusion and recommendation..................................................................................................12
References......................................................................................................................................14

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Introduction
This assignment will identify an opportunity in the context of international creative. The role of
the technology has been extended day by day that has positive as well as negative effect on the
performance of the business. For this paper, corruption in business and government as an
international creative opportunity will be selected. Transparency international elaborates
corruption as the abuse of delegated power to private advantages. The range of corruption is
huge, fro, government officials demanding considering petty payments and taking bribes, right
up to taking big kickbacks and oil (Matei and Matei, 2011).
The open contracting can be applied on international data standard that incentivizes business,
civil society and government to be more transparent by including value by the procurement
cycle. Open Contracting is major to the fight against corruption. Today, Open Contacting
premise is considered as that more open and transparent public contracting procedures to deter
corruption and depict mismanagement of public resources. During procurement process, the role
of corruption affects development in many ways. First, it is likely to have impact on cost. If
organizations have to pay bribes to get government construction contracts, the government is
likely to have to pay in excess than they would have otherwise for the reason of recouping the
costs by the firms (Pretelt, 2014).
In order to tackle corruption in open contract, public contracting is one of the effective
government functions to deliver public services and fulfil the needs and right of citizens.
Government join initiatives by taking consideration of different approach in the form of a
voluntary, decision to act, an action plan and often policy motivated. When government

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purchased goods and services in an effective manner, public services are productively delivered,
and all society benefits. Government can deal with such corruption by developing transparency
and openness in government spending. Along with that they can cut red tape and replacing
distorting and regressive subsidies with targeted cash transfers (Rose-Ackerman and Palifka, 2016).
With the help of this assignment, it would be easy to find out the way of reducing the corruption
in near future. The use of three creative or analytical tools will be taken in order to demonstrate
the importance of this selected area of opportunity. The reason behind choosing the tool will be
explained in order to bring better understanding of the reader. The short plan for implementation
of the opportunity will be developed so that knowledge can be increased regarding the
opportunity. The role of the leader in accomplishing the task is huge, that is why the approach of
leadership will be depicted under this paper as well. At last, conclusion will be drawn and
recommendations will be made on the same.
Identification of an opportunity
With respect to the problem of corruption, it shall be noted that when a huge corporation
determines to enter a foreign market, it must frequently secure a several of license, registrations,
or other government approvals. Various types of business can be illegal or impossible unless the
corporation is initial able to attain amendment to the laws of the nation. Since the power to
approve the foreign activities of corporation is vested in the hands of local politicians, and since
corporation have access to huge financial resources, it must not be astonishing that some entity
executives resort to financial incentives to impact foreign officials (Baumgartner and Ebner,
2010). On the other hand, certain kind of financial incentives, like promises to invest in local
infrastructure, can be considered as legitimate, any form of direct payment that cross the line into

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illegal subordination is referred as bribery. There are large cases in the world that are
successfully tried pursuant to the FCPA (Foreign Corrupt Practices Act) are mentioned below:
 Siemens (Germany): $800 million in 2008
 BAE (UK): $400 million in 2010
 Technip SA (France): $338 million in 2010
 Alcatel-Lucent (France): $137 million in 2010
Demand
The rate of corruption in increased day by day and it is necessary for the government as well as
organizations to take an appropriate action in against of them. The demand of preventing
corruption in the organization ad government is amplified and that is why the selection of this
topic is suitable for people. The world is dwindling, but its cultures remain world apart, as do its
ethical conditions. The corruption is increased in the world in the form of bribery, kickbacks,
nepotisms and cronyism, and one wants to know the reason behind this corruption. Many
questions come in mind of every citizen regarding corruption (Karhunen and Ledyaeva, 2012).
So, selected opportunity area is good enough and meets explicitly the criteria of demand. The
phenomenon of corruption offers effective examples of these realities. The role of the corruption
is different in different countries and it is necessary to understand the behaviour of it an adequate
manner.

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Innovation
Yes, the chosen opportunity area of corruption in business and government is able to meet the
crucial factor of innovation. There are number of techniques through which the corruption can be
controlled. There is some innovative way that would be helpful in eliminating risks and
corruption in the business (Graycar and Sidebottom, 2012). Automation tax collection is
innovative idea for reducing the corruption and to decrease discretionary practices in tax
collection. The tendency of paying less by taxpayers and earning more by tax administrators lead
to bribery and corruption in tax office. There should be the automated system of tax
administration that moved taxpayer information that should be accessed by the people who need
it actually (Guardian, 2017).
Feasibility
Feasibility can be seen in the opportunity areas of corruption in business and government
because everyone wants to be get rid from such corruption as, it seizes the growth of other
people and make world hollow. In the context of attractiveness, the opportunity of reducing the
corruption in enterprises and government can be achieved by taking consideration of latest
technology, people has become advanced and they know how to use technology in an
appropriate manner (Kolstad and Wiig, 2016).
With respect to the value creation, it shall be noted that the elimination of corruption from the
world can lead the people of each country from tension free. This opportunity will be helpfulin
developing value of the companies as well as customers, they do not need to spend a large
amount for bribery to get their position, stoppage in the corruption can lead people to do hard

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work and get what they deserve. Honesty and trust will generate within the country
(Razafindrakoto and Roubaud, 2010).
Effective use of 3 creative or analytic tools
There are three creative and analytical tools that help in originating, developing and evaluating
the opportunity area in effective way. The discussion regarding three tools is mentioned below:
DIFA (demand, innovation, feasibility and attractiveness)Model Analytical Tool
DIFA model is the analytical tool that depicts the opportunity in the form of four aspects and
these are demand, innovation, feasibility and attractiveness. The relation of these four aspects of
the model with international creative opportunity area is mentioned below:
Demand
An actual customer for the opportunity area of corruption in government and enterprises are
employees of private and government organization, students, teachers, youngster, poor people
and low income people. However, the reality is entirely different because the adoption towards
culture of each country is different (Yadoo and Cruickshank, 2012). Whereas Western Cultures
are mainly rule-based, most of the culture of the world is relationship based. it is the tendency of
the westerners to have trust on the system.
Innovation
The technology of automation tax collection in the context of eliminating corruption from the
system is good enough (Mangkualam, Sudiana, Rahardyan, Noviyanti and Fahmie, 2012). It has

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number of benefits because it would be helpful in decreasing the opportunity of bribery among
government as well as private organizations.
Feasibility
Yes, the opportunity to reduce the corruption is feasible because there are number of people all
around the worked that wants to know the reason behind corruption and desire to eliminate it as
soon as possible (Spencer and Gomez, 2011).
Attraction
This opportunity area has different points to get attracted from number of people as it entails
latest technology that help in increasing the trust of people over the regulations of government.
Business Model Canvas
Business model is analytical tool that is helpful in describing the condition of the business and
provide opportunity to increase growth of the business in a competitive market. An effective
business model facilitates the business to get effective elements such as business concept such as
what are the major problems within the business which should be solved within time frame, in
what way the customer will create value and in what way the product or services will get to
customer.

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Key Partners
 Government
 Suppliers
 Private
organizations
Key Activities
 Reduce the
corruption
by adopting
latest
technology
 strategy
with low
risk
Value Proposition
 Generated
number of job
opportunities
 Build trust of
people
towards
government
polices and
rules
Customer
Relationships
 Offering
premium
quality to
the
customers
by latest
technolog
y.
Customer
Segments
 Employees
 Job seekers
 Businessman
 Government
employees
 People who
are more
concerned
about their
tax
redemption.
Key Resources
 Latest
technologies
 Skilled
people who
are having
proper
knowledge
regarding
handling the
tasks
Key channels
 Advertisment
 Media articles
 Slide show

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Cost Structure
 Marketing and promotional
costs
 Cost of latest equipment
 Technology installation costs
 Expenses of Administrative and
management
Revenue Streams
 Funds from government
 Profits and revenues from targeted market customers
Market Funnel Analytical Tool
It is the analytical tool that entails five points such as awareness, consideration, conversion,
loyalty and advocacy. In the context of awareness, the relationship with potential customers will
be maintained in order to educate them regarding the technology for eliminating the corruption.
Consideration is the factor of this model that depicts to generate a relationship with customer and
nurture them with targeted content. Conversion is the stage on which the customer is being
forced to purchase the services. The opportunity area of decreasing corruption in enterprise and
government organization can be done via implementation of automatic tax allocation. Loyalty is
the factor that would be helpful for the customer to maintain their trust on the latest technology
so that they can contribute in removing corruption all around the world. Advocacy is the term
that acts as promotion tool because satisfied customer will communicate with others about the
experiences services that boost others to buy them.

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Explanation of why these tools were selected
The reason behind selecting these tools for this paper is matching of their factors with the
requirement of the selected opportunity area. In the context of DIFA model, it can be said that it
entails four factors of demand, innovation, feasibility and attractiveness and the application of
this model on the new opportunity area is effective. Along with that, business model canvas as
analytical tool has been chosen because it comprises nine building blocks of key partners,
customer segments, value proposition, customer relationship, key resources, key channels, cost
structure and revenue streams. The use of last tool that is Market Funnel Analytical Tool is being
taken because it comprises five steps of awareness, consideration, conversion, loyalty and
advocacy that help business to achieve desired objectives within time frame (Couth and Trois,
2010).
These models are helpful in getting effective knowledge regarding future implications so that the
adoption of latest technology in reducing corruption can be implemented. With the help of DIFA
model, the innovation technology can be focused by taking consideration of demand, innovation,
attractiveness and feasibility rate. Along with that the business model canvas is helpful for new
business to understand the nine building blocks in the context of improving the condition of the
business (Meertens, et. al., 2012).