Promoting business integrity in the Global South

There is a growing and established consensus that high levels of corruption are harmful to business through undermining competitiveness and entrepreneurship, reducing institutional quality, and presenting a barrier to trade (Ali & Mdhillat, 2015; Horsewood & Voicu, 2012; Musila and Sigué, 2010; Rodrik, Subramanian & Trebbi, 2004; Zelekha & Sharabi, 2012). This undermines economic development: corruption is positively and significantly correlated with lower GDP per capita, less foreign investment, and slower growth (Ades & Di Tella, 1999; Anoruo & Braha, 2005; Hall & Jones, 1999; Kaufmann & Wei, 2000; Knack & Keefer, 1995; Javorcik & Wei, 2009; Méndez & Sepúlveda, 2006; Méon & Sekkat, 2005; Rock & Bonnett, 2004). Yet in contexts where corruption is pervasive and systemic, as in many parts of the Global South, corruption in business is a collective action problem ( Bauhr & Nasiritousi, 2011; Mungiu-Pippidi, 2011; Persson et al., 2013; Rothstein, 2011): although many businesses would rather not pay bribes, for any one firm, refusing to pay them risks forfeiting access to contracts or necessary permits.