Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .Social Status, Social norms and Bribegiving behaviors of citizens in Vietnam .
INTRODUCTION
Research rationales
Corruption, a longstanding political and societal issue, has gained renewed attention in the context of globalization, with increased concern surrounding its impact Defined by the Independent Commission Against Corruption (1998) as the dishonest exercise of official functions by public officials, corruption is further characterized by Transparency International (2010) as the misuse of public power for private gain, often involving illegal and unethical practices It typically arises when individuals pay bribes to evade penalties for harmful actions or when regulatory oversight is inadequate Bribery, a significant aspect of corruption, is described as the act of offering or giving something to influence a public official's duties (The Fight Against Bribery, 2000), and can manifest as monetary or other financial incentives This pervasive issue affects global business, transcending borders and impacting various stakeholders.
Corruption has a detrimental effect on national economic development by deterring foreign investment, inhibiting innovation, and constraining growth Recent studies indicate that it undermines innovation, damages firm integrity, and erodes trust, significantly restricting long-term sustainability for businesses Additionally, corruption reduces firms' competitiveness and access to resources, leading to unfair income distribution and increasing economic inequality.
The World Bank estimates that over USD 1 trillion is paid in bribes annually, representing 3% of the global economy, which totals USD 30 trillion This corruption acts as a 20% tax on citizens, particularly in countries with corrupt public officials, where individuals often resort to paying small bribes to access essential services like health care, education, and policing Approximately 1.6 billion people are forced to pay these bribes each year, undermining the rule of law and infringing on civil rights This widespread corruption diminishes public trust in government authorities and negatively impacts the quality of local governance.
A significant concern among Vietnamese citizens is corruption, which they view as the most serious issue facing the country, according to the World Bank (2012) Approximately 82 percent of respondents reported experiencing corruption, particularly in the form of bribery A follow-up study in 2016 further examined conflict of interest from the citizens' perspective, highlighting that gift-giving, both cash and non-cash, is a common practice that influences public servants' decisions This form of bribery is prevalent at all levels, reinforcing the widespread perception of corruption in Vietnam.
In Vietnam, a significant number of individuals encounter the necessity of paying bribes for public services, with survey findings revealing that 47% of respondents admitted to bribing traffic police, 32% for educational services, and 25% for healthcare services (World Bank, 2012) This alarming trend underscores the pervasive corruption within the country's public service sector, as highlighted by Transparency International.
Corruption in Vietnam's public sector has reached alarming levels, with statistics revealing that 61% of citizens resort to bribery when accessing public services or engaging in administrative transactions To effectively combat this issue, it is essential to address three key questions: who are the frequent bribers, what motivates citizens to offer bribes, and what factors contribute to the necessity of bribery for obtaining public and administrative services.
The motivations behind individual bribery remain debated in the literature, with some studies emphasizing cost/benefit calculations and others highlighting cultural and institutional influences Citizens may resort to bribery due to anxiety, lack of confidence, or fear of challenges when accessing public services, as well as to evade sanctions from authorities like tax officers or police While traditional research often frames bribery as a rational choice, an alternative perspective views it as a cultural phenomenon, where societal norms and reciprocity encourage corrupt behavior Additionally, the dynamics of power between citizens and public officials, along with the socioeconomic factors influencing bribe-giving, warrant further investigation.
From individual perspectives of corruption, the research gap of corruption is: (i) to explain why people in different social status might differ in accepting and giving bribes
A citizen's bargaining power in relation to public officials significantly affects their willingness to pay or refuse bribes The cost-benefit and bargaining power framework elucidates the reasons behind bribery and identifies which demographics are more inclined to offer bribes when accessing public services Additionally, this framework seeks to explore whether common social norms can influence the relationship between social status and the propensity to give bribes among citizens.
Research objectives and questions
This research explores the impact of social status and cultural norms on citizens' willingness to give bribes, providing valuable insights into anti-corruption strategies in Vietnam As one of the first studies to examine bribery from the citizens' viewpoint, it offers empirical findings that contribute to the anti-corruption discourse in Vietnam and other transitional economies The study presents recommendations aimed at enhancing the effectiveness of anti-corruption efforts.
To reach to the research objectives, this dissertation focuses on following research questions:
- How do social status and social norms affect the bribe-giving behaviours of citizens?
- How do social norms moderate the relationship among social status, norms and bribe-giving behaviours of citizens in Vietnam?
- What should be recommended to a more effective anti-corruption measures in Vietnam and other emerging countries?
Subject and scope of the research
This dissertation examines how social status and societal norms influence citizens' tendencies to engage in bribery It specifically investigates both the direct effects and the moderating roles of these factors on the behavior of individuals when it comes to giving bribes.
This research focuses on public service and administration in Vietnam, utilizing secondary data from the Global Corruption Barometer (GCB) and the Vietnam Public Administration Performance Index (PAPI) The GCB survey collects respondents' personal experiences with bribery in public services, their perceptions of corruption, and their views on government anti-corruption efforts Meanwhile, PAPI evaluates three key processes: policy formulation, implementation, and monitoring of public service delivery, positioning citizens as "end users" who assess the quality of governance and public administration in their communities.
This study investigates the consistency of social status and norms on citizens' bribe-giving behaviors across different regions, providing complementary empirical results relevant to Vietnam It utilizes diverse data sources, including the Corruption Perception Index from Transparency International, the Worldwide Governance Indicators by the World Bank, and the Democracy Index from The Economist Intelligence Unit.
Research methods
This dissertation employs fundamental quantitative research methods to investigate the relationship between social status, social norms, and bribe-giving behaviors, addressing a research gap identified in the literature review Utilizing a theoretical framework and data from diverse sources, relevant hypotheses are developed and analyzed using Probit regression models The findings are presented for discussion and implications, with a comprehensive outline of the research methods detailed in Chapter 3.
This dissertation utilized data from diverse international sources, primarily the Global Corruption Barometer by Transparency International, which was conducted in 2017 at both national and regional levels The survey examines citizens' personal experiences with bribery in public services, their perceptions of corruption, and their views on government efforts to combat it Since its inception in 2003, the Global Corruption Barometer has provided insights into the everyday experiences of individuals facing corruption across various countries and territories worldwide.
The Vietnam Provincial Governance and Public Administration Performance Index (PAPI) serves as the country’s largest annual policy monitoring tool, encompassing six key dimensions: local participation, transparency, accountability, corruption control, public administrative procedures, and service delivery By assessing citizens' experiences and perceptions regarding the performance and quality of provincial government services, PAPI aims to promote effective and responsive governance in Vietnam The collected indices are normalized, providing a comprehensive benchmark for evaluating governance performance.
1 to 10 Accordingly, the higher index indicates the better level of administrative reform, corruption control, public service delivery and vice versa
Data sources for governance and corruption assessments include the Corruption Perception Index by Transparency International, Worldwide Governance Indicators from the World Bank, and the Democracy Index by The Economist Intelligence Unit, all based on 2017 data The Corruption Perception Index reflects citizens' views on public sector corruption and government anti-corruption efforts The Worldwide Governance Indicators evaluate governance across over 200 countries, focusing on six dimensions: Voice and accountability, Political stability, Government effectiveness, Regulatory quality, Rule of law, and Control of corruption Finally, the Democracy Index assesses democracy in 165 independent countries and two territories, considering five key elements: Electoral process and pluralism, Civil Liberties, Functioning of Government, Political Participation, and Political Culture.
This dissertation utilizes quantitative research methods to examine how social status and norms influence citizens' bribe-giving behaviors The research incorporates a desk study, descriptive statistical analysis, and regression analysis, with a comprehensive overview of these methods provided in Chapter 3.
This article summarizes and analyzes secondary information from previous research, including reports and studies, to identify knowledge gaps related to corruption A comprehensive literature review on corruption and bribery is conducted to explore their definitions, antecedents, and consequences across various contexts The findings are compared using different approaches and methods to clarify the research objectives.
This dissertation employs descriptive statistics to analyze the Global Corruption Barometer dataset, summarizing key features of corruption and anti-corruption in Vietnam By utilizing simple graphical analysis, the study highlights three critical aspects: the current state of corruption, the prevalence of bribe-giving among Vietnamese citizens, and the societal norms surrounding corruption in the country.
This dissertation employs Probit models to assess how social status and norms influence citizens' propensity to give bribes The estimated results are utilized to evaluate the proposed hypotheses Furthermore, the findings provide a scientific foundation for formulating implications aimed at assisting policymakers and individuals in combating corruption in Vietnam and other emerging nations.
Contributions of the research
This research makes a significant contribution to academic literature by applying the bargaining power framework and institutional theory to explore how social factors, such as socioeconomic status and societal norms, influence bribe-giving behaviors in Vietnam's unique cultural context It conceptualizes bribes not only as informal costs for accessing public services but also as societal norms By viewing corruption as a rational choice, the study suggests that individuals may engage in bribery when the perceived benefits outweigh the risks Furthermore, it posits that greater bargaining power leads to reduced bribe payments, particularly among the poor and unemployed compared to those with lower education levels This dissertation also highlights the moderating role of bargaining power in understanding how social status impacts bribe-giving behaviors within anti-corruption communities.
From the perspective of institutional theory, social and cultural norms significantly influence citizens' engagement in bribery In communities where anti-corruption practices are prevalent as social norms, there is a notably lower likelihood of individuals giving bribes Conversely, when corrupt practices are normalized within a society, the acceptance of corruption becomes more common, influenced by the frequency of such behaviors and the actions of others Research indicates that social norms can lower the perceived costs of engaging in corrupt activities, thereby facilitating the growth of corruption (Truex, 2011) Therefore, adopting an institutional approach is essential for understanding the motivations behind individuals' bribery to access public services.
This study is one of the first to explore bribe-giving from individual perspectives, providing valuable empirical insights that contribute to the anti-corruption agenda in Vietnam and other transitional economies.
This study explores the high levels of corruption in Vietnam and other Asian emerging countries, providing empirical evidence on why individuals engage in bribery and how social factors influence these behaviors While previous research has examined the motivations behind corrupt actions, it often lacks a comprehensive rational and institutional perspective This dissertation significantly contributes to the literature by proposing a framework that explains bribe-giving behaviors across various social groups and societal norms, offering valuable implications for addressing anti-corruption efforts in Vietnam.
Structure of the dissertation
This dissertation has been divided into five chapters
Chapter 1 is Introduction It includes the rationales of the research, the purposes and objectives of the research, general research questions and a brief overview of the research methods
Chapter 2 is Literature Review This chapter provides a review of current literature to the topic of corruption and bribery Accordingly, it provides various definitions and forms of corruption relating to the research study Also, the chapter includes a review of literature from previous studies identifying consequences and antecedents of corruption and bribery It provides the drivers of bribery, including passive and proactive motivations From the literature review, this chapter provides research gaps at the end
Chapter 3 is Theoretical Framework and Research Methodology The chapter provides a detailed description of the related theories which are selected for this research It provides theoretical framework for the formulation of specific research questions and for the hypothesis to be tested The chapter also presents a description of the research design and models, including data collection, data sources, estimated models and coding procedures for the dependent and independent variables
Chapter 4 is Empirical Results and Discussions The chapter discusses the results of the analysis and hypothesis findings
Chapter 5 is Conclusions and Recommendations The final chapter presents main findings and conclusions Some recommendations for policy makers, governmental officials and citizens withdrawing from conclusions are provided This chapter concludes with some limitations and suggested avenues for future research.
LITERATURE REVIEW
The concepts: Bribery, Social Status and Social Norms
Bribery and corruption are often used interchangeably, but it's essential to distinguish between them Corruption is a broad term that encompasses various fraudulent activities, including bribery, nepotism, extortion, and vote buying Despite its prevalence, there is no universally accepted definition of corruption, highlighting the complexity of the issue (Ike, 2008).
The UN Anti-Corruption Toolkit (2004) highlights the complexity of defining corruption, noting that there is no universally accepted definition Efforts to establish a clear definition often face legal, criminological, and political challenges During the early negotiations of the United Nations Convention against Corruption in 2002, one proposal considered was to avoid a general definition and instead focus on identifying specific corrupt acts.
However, it is outlined some elements of corrupt practices that are generally accepted (UN, 2004), as following:
The act of bribery involves either the promise, offer, or provision of an undue advantage to a public official, whether directly or indirectly, to influence their actions or inactions in their official capacity Additionally, it encompasses the solicitation or acceptance of such advantages by the official for themselves or another entity, aimed at swaying their official duties.
Corruption, summarized by the UN (2004), can be simply defined as “the misuse of (public) power for private gain”.
The variety of forms of Corruption includes:
- “Bribery- involves the promise, offer or giving of any benefit that improperly affects the actions or decisions of a public official;
- Embezzlement – theft of resources by persons entrusted with authority and control over anything of value;
- Fraud –any behavior designed to trick or fool another person or entity for one’ s own or third party’ s benefit;
Extortion is the act of coercing an individual to pay money or surrender valuables in exchange for action or inaction This illegal practice often involves threats of physical harm, violence, or restraint, creating a climate of fear and intimidation.
- Abuse of Power – using one’s vested authority to give undue preferential treatment to any group or individual or to discriminate against any group or individual;
Engaging in insider trading involves exploiting a conflict of interest by participating in transactions or acquiring positions that conflict with one's official responsibilities, ultimately aiming for illegal financial gain.
- Receiving an unlawful gratuity, favor or illegal commission – a public official receives anything of value from others wishing to do business with the government;
- Favoritism – the assignment of services or resources according to family ties, party affiliation, tribe, religion, sect and other preferential groupings;
- Nepotism – a form of favoritism whereby an office holder with the right to make appointments, prefers to nominate his/her relatives for positions within the public administration;
Illegal contributions involve political parties or governing bodies receiving financial support in return for not interfering with the contributing entity or group, closely resembling bribery.
Corruption is a complex and multifaceted issue that can be defined in various ways depending on the context (Luo, 2005) Research has revealed valuable lessons learned across different cultures, highlighting that corruption is a pervasive problem affecting nearly every country globally (Ike, 2008).
Corruption is perceived by citizens as the misuse of public power for personal gain, involving both governmental officials and organizations It encompasses illegitimate exchanges of resources that violate established norms and rules, leading to benefits or privileges for individuals This unethical behavior can occur across various sectors, including political agencies, profit-driven companies, and non-profit organizations, affecting both domestic and international contexts.
According to Transparency International (Transparency International, 2017), corruption is “the abuse of entrusted power for personal gain” TI classified corruption into three categories: political, grand and petty corruption
Political corruption involves the manipulation of policies and regulations by political decision-makers, impacting the allocation of public resources and spending Officials often prioritize projects that offer the highest bribes, skewing the decision-making process This leads to the abuse or alteration of laws and regulations, allowing leaders to serve their own interests rather than the public good.
Grand corruption refers to high-level government actions that manipulate regulations and policies, undermining the system's core functions These acts enable elites to amass additional wealth and privileges, ultimately harming the public interest.
Petty corruption, often referred to as administrative corruption, involves everyday interactions between public officials and ordinary citizens, typically manifesting as bribery This form of corruption usually requires citizens to pay more than the official fees for services or even for services that are supposed to be free Furthermore, petty corruption is characterized by the abuse of power by public officials in routine situations, undermining trust in public institutions and complicating access to essential services.
Corruption can be classified into three key behaviors that undermine the integrity of government officials: vote-buying, illegal lobbying (or favor-seeking), and the exchange of 'red envelopes' to facilitate official transactions or as gifts Illegal lobbying is categorized as grand corruption, while the act of giving 'red envelopes' is considered petty corruption (Yu, Chen, & Lin, 2013).
Illegal acts and corrupt practices are not always synonymous, as societal norms can influence their classification In some cultures, certain behaviors may be viewed as corrupt, while in others, they are seen as legitimate political actions or formal duties Despite varying definitions, corruption consistently exhibits seven characteristics: it is context-based, deviates from norms, is power-related, often covert, intentional, opportunistic in hindsight, and shaped by perception (Luo, 2005).
Firstly, depending on the different perspectives, culture or contexts, the meaning of
‘corruption’ can be viewed differently from different people Thus, changing political environment may change the way of explaining corruption terms and identifying corrupt behaviors.”
Corruption deviates from societal norms as it harms social welfare and breaches legal codes within a specific political context While certain actions may be deemed corrupt in particular situations, a universally accepted legal definition is often lacking, with moral interpretations prevailing Legal definitions are typically more operational, clear, and consistent, making them the preferred standard Moreover, when individuals offer bribes, they anticipate that recipients will prioritize personal benefits over organizational goals, ultimately jeopardizing societal interests for private gain.
Corruption is inherently linked to power, as it requires a corruptor to hold a position of authority This power can stem from market imperfections or an institutional role that provides discretionary authority Such discretion enables individuals in power to make decisions that benefit themselves, often leading to corrupt practices.
Consequences of corruption and bribery at individual levels
2.2.1 Inequality in accessing public service
Research on bribery from an individual perspective remains limited compared to studies at the country and corporate levels Most investigations are exploratory and rely on structural surveys conducted by organizations like the World Bank and Transparency International The impact of bribery and corruption on citizens manifests as increased costs for public services, diminished living standards, and a decline in the quality of essential services such as education, healthcare, and administration.
Bribery, if socially accepted, would lead to additional fees for citizens accessing government services, ultimately increasing the costs of goods and services as companies pass on these expenses (Pacini et al., 2002; Nwabuzor, 2005) This practice not only diminishes the quality of goods and services, as wealth is gained through power abuse rather than quality provision, but also makes high-quality products unaffordable for many, negatively impacting overall living standards (Nwabuzor, 2005) Furthermore, bribery skews resource allocation away from essential social sectors like healthcare and education towards projects that yield higher bribes, resulting in significant public spending losses and posing serious risks to citizens' health and environmental sustainability (McKinney & Moore, 2008; Baughn et al., 2010).
2.2.2 Reduction in service quality and citizens’ satisfaction with public services
Research indicates a negative correlation between governmental corruption and citizen satisfaction with public services, as higher corruption levels lead to diminished trust in civil servants (Park & Blenkinsopp, 2011; Caillier, 2010) Citizens often perceive corrupt governments as serving the interests of politicians and elites rather than the public, resulting in a belief that government is less capable of solving problems This perception, whether based on real or perceived corruption, adversely affects citizens' views on government performance and erodes their trust (Park & Blenkinsopp, 2011; Van de Walle & Migchelbrink, 2020) Furthermore, perceived corruption undermines public respect for the government as a service provider, fostering cynicism among citizens A study by Houston et al (2016) involving 21 countries found that institutional quality significantly influences citizen trust in public administration, highlighting the critical role of governance in shaping public perceptions.
& Migchelbrink (2020) performed a study of 137- European regions highlighted the absence of corruption and the improvement in quality of public service are positively correlation to citizens’ trust in public administration
2.2.3 Inefficiency in governmental services provision and income distribution
Corruption increases transaction costs and diminishes bureaucratic efficiency and the quality of public investments, leading to a lack of trust in institutions that can stifle innovative activities The inherent risks associated with innovation are exacerbated by corruption, which raises uncertainty and discourages individuals from pursuing innovative projects, ultimately pushing them towards more lucrative and easily manageable rent-seeking endeavors.
Additionally, Gupta et al., (2000) proved that countries with high level corruption are associated with inefficient government services and a low quality of public healthcare provision
Corruption significantly impedes national economic growth by exacerbating income inequality, as it primarily benefits those in power rather than the impoverished Bribes are typically directed towards individuals with resources, leading to a misallocation of public goods, which are often provided at reduced rates or for free by the state This results in public officials prioritizing those who can afford illegal payments, thereby diverting essential services away from the needy Research by Gupta et al (2002) highlights a notable correlation between corruption and income inequality across 37 countries, while You & Khagram (2005) demonstrate that rising inequality further fuels corruption, as the poor lack the political and economic means to hold the wealthy accountable, allowing for continued exploitation through bribery.
Antecedents of corrupt behaviors among individuals
Numerous researchers have examined the influence of macro-environmental factors on corruption, revealing that individuals' perceptions of corrupt practices are shaped by their daily experiences These behaviors are significantly influenced by the social, institutional, and economic conditions prevalent in their respective countries.
High levels of corruption within a community can foster a culture of tolerance towards corrupt practices, leading to their normalization in social behavior As corruption becomes more widespread, it becomes easier to justify unethical actions Factors contributing to the emergence of corruption include opaque government actions, ineffective anti-corruption systems, the blending of gift-giving with bribery, unclear business-government relationships, and weak market structures Additional influences are low public service efficiency and wages, the presence of a black market, strong ties between officials and family businesses, a lack of democratic power-sharing, poor media performance, and limited market access.
A comparative study by Quah (2003) highlights that bureaucratic corruption is influenced by the interplay of opportunities, salaries, and political effectiveness When opportunities are limited, salaries are competitive, and policing is effective, corruption remains minimal Conversely, an abundance of opportunities, inadequate salaries, and weak enforcement leads to significant corruption The transition in public administration, particularly in agencies like customs, immigration, and police, has increased opportunities for corruption due to their interactions with foreign enterprises, banks, and development projects Furthermore, substantial budgets and access to large populations amplify the potential for corrupt actions, while cumbersome administrative procedures create delays that encourage clients to resort to bribery.
Low salaries for civil servants can lead to increased corruption, as individuals may resort to accepting bribes to supplement their income, especially when the likelihood of detection and punishment is minimal When public officials view corruption as a low-risk, high-reward endeavor, they are more inclined to engage in bribery, expecting similar behavior from clients seeking public services To combat corruption effectively, it is essential to enhance government salaries, improve the chances of detecting and prosecuting corrupt officials, and limit government interference in the economy, thereby reducing opportunities for corrupt practices (Rock, 2009).
The relationship between environmental factors and corruption is well established; however, the connection between democracy and corruption remains contentious Recent studies have identified two primary perspectives on how democratization influences national corruption levels.
Democracy has a complex relationship with corruption, as it can both increase and decrease it Initially, greater access to public funds and positions may lead to increased corruption (Case, 2002; Hicken, 2006; Rock, 2009) However, as competition for the use of these resources intensifies, corruption may decline (Chowdhury, 2004; Iwasaki & Suzuki, 2012; Sandholtz & Koetzle, 2000; Treisman, 2000) Some scholars propose an inverted U relationship between democracy and corruption, suggesting that while corruption may rise post-democratization, it could eventually decrease due to increased competition among rent seekers (Mohtadi & Roe, 2003) This theory is supported by empirical findings in Indonesia and Thailand, yet it remains an area ripe for further research.
The external environment significantly influences both the facilitation and combat of corruption In weak institutions characterized by ineffective regulations, diminished trust, and power imbalances, officials are more prone to engage in corrupt practices that harm society, often driven by personal gain through bribery Conversely, corruption tends to decrease in strong institutions that promote trade openness, equitable competition, transparency, and accountability (Dimant et al., 2016).
Social interaction, encompassing social values, norms, and rules, significantly impacts an individual's choice to engage in corrupt behavior within a society (Dimant et al., 2016).
Culture is a complex concept that serves as a collective mindset distinguishing one group from another, encompassing meanings, beliefs, values, and symbols within a society (Nguyen et al., 2009; Hofstede & Bond, 1988; Schwartz, 2004) Cultural values are transmitted across generations, influencing individuals' beliefs, actions, and goals, while guiding their evaluations of others' behaviors (Schwartz, 1992) Corruption is often rooted in social and cultural conditions, with characteristics such as high power distance, masculinity, and uncertainty avoidance fostering corrupt practices (Shadabi, 2013; Husted, 1999) In cultures with high power distance, favoritism and nepotism can lead to corruption, while societies that emphasize masculinity may encourage material rewards that promote corrupt behaviors (Davis & Ruhe, 2003) Additionally, high uncertainty avoidance can drive individuals to seek stability through corrupt means (Tong, 2014) The orientation towards long-term versus short-term goals also impacts corruption levels, with long-term cultures promoting persistence and future-oriented thinking, whereas short-term cultures may prioritize immediate benefits through favors and gifts (Hofstede, 2011; Achim, 2016) Furthermore, individualistic societies tend to exhibit lower corruption levels compared to collectivistic cultures, where group loyalty can lead to law violations and increased corruption (Davis & Ruhe, 2003; Murdoch, 2009; Tong, 2014).
In sociology, the focus is on the interplay between social structures and corruption, raising questions about how these structures influence the nature and prevalence of corruption within society Research indicates that social norms and rules significantly shape the actions of individuals, with corruption often viewed as a deviation from accepted standards While empirical studies employ diverse qualitative and quantitative methods, opinions on corruption's impact vary widely Some scholars argue that corruption can serve functional roles in society, facilitating social mobility and stability through wealth distribution, while also integrating industrial elites into political systems This perspective suggests that corruption may "grease the wheels" of necessary change and help navigate bureaucratic obstacles to economic growth Conversely, many researchers emphasize the negative consequences of corruption, highlighting its immoral aspects and the stigma attached to corrupt practices Understanding the social structure is crucial for explaining the emergence and persistence of corruption, as well as why it is less prevalent in certain countries Therefore, effective prevention of corruption necessitates collective action to uphold norms against such behavior.
National culture plays a crucial role in shaping individual engagement with corruption, as countries characterized by high uncertainty avoidance, masculinity, and power distance tend to exhibit elevated corruption levels and declining institutional quality (Dimant et al., 2016) Research indicates that citizens in strong anti-corruption communities are less likely to offer bribes compared to those in corrupt societies, where bribery is often normalized (Le & Nguyen, 2020) Various studies, including those by Treisman (2000) and Paldam (2002), as well as experimental research (Abbink et al., 2002; Barr & Lindelüw, 2004; Bertrand et al., 2007; Cameron et al., 2009; Frank & Schulze, 2000; Olken, 2007), have explored cultural influences on attitudes toward corruption For instance, Bühren (2019) highlighted that social norms like reciprocity and trust significantly affect bribery decisions in China and Germany Additionally, Barr and Lindelüw (2004) found that higher incomes and increased risks of detection reduce public sector corruption in Ethiopia Field experiments by Bertrand et al (2007) revealed that corruption not only involves transfers from citizens to bureaucrats but also distorts resource allocation Olken (2007) demonstrated that governmental audits are more effective than local authority monitoring in reducing corruption levels in Indonesian road projects Lastly, Cameron et al (2009) noted that in countries with low corruption, the likelihood of punishing corrupt behavior is significantly higher than the propensity to engage in corruption.
Research indicates that individual characteristics such as education, gender, occupation, income, and age significantly influence corrupt behavior (Dimant et al., 2016) Higher education correlates with a greater likelihood of condemning corruption and a lower acceptance of bribes (Dimant et al., 2016; Le & Nguyen, 2020; Truex, 2011) Women generally adhere more closely to societal rules, taking fewer risks and engaging in corruption less frequently, as they are often viewed as more ethical than men due to inherent biological and social differences (Swamy et al., 2001) Men, on the other hand, are more inclined to offer larger bribes, and female officials typically receive lower bribe offers compared to their male counterparts (Frank et al., 2011) Additionally, individuals from lower socioeconomic backgrounds, particularly those who are unemployed or less educated, often experience anxiety and fear when accessing public services, leading them to pay bribes more frequently and in higher amounts (Le, 2018).
Research strands of corruption and bribe behaviors
Corruption is often viewed as a rational action, where individuals engage in corrupt practices after weighing the potential benefits against the risks involved This cost/benefit analysis leads them to pursue corruption when the perceived rewards surpass the likelihood of being caught and facing penalties The severity of sanctions plays a crucial role in shaping these decisions, as harsher penalties can diminish the expected gains from corrupt behavior Additionally, the magnitude of potential returns, such as high bribes, significantly influences the allure of corruption, making it more tempting for individuals to engage in such actions.
Scholars emphasize the significance of the legal system in ensuring compliance with laws, suggesting that the presence of sanctions and incentives greatly influences adherence (Biswas, 2017; Klitgaard, 1988; Rose-Ackerman, 1999) To combat corruption effectively, it is essential to impose severe sanctions alongside the incentives that foster such behavior Publicly visible sanctions play a crucial role in deterring corruption; however, if laws are consistently violated without consequence, it undermines public motivation to follow them This scenario leads to a detrimental cycle of widespread violations, ultimately impacting all sectors of society.
Research on corruption as a rational action examines factors influencing its occurrence, including the likelihood of punishment, transaction costs (Lambsdorff, 2002), the intricacies of corrupt activities (Ajzen, 1991), the potential for information exposure (Carrillo, 2000), and anticipated penalties (Goel & Rich).
The legal and regulatory environment plays a crucial role in addressing corruption, as highlighted by Rose-Ackerman (1999) Internationally, many nations have committed to anti-corruption treaties, such as the OECD Anti-Bribery Convention of 1997, which aim to deter cross-border corruption Companies operating globally face risks associated with cross-border bribery and the varying enforcement of anti-corruption laws across different countries (Jeong & Weiner, 2012) Consequently, uncertainty in law enforcement, perceptions of corruption, and ineffective legal frameworks can contribute to corruption in international business.
Rational corruption is often viewed as a necessary cost of entering new markets, with managers recognizing it as part of the business landscape that requires consideration in their operational evaluations While corruption is critical in decision-making regarding market entry, it presents complexities beyond standard taxation due to its clandestine and illegal nature This can lead to reduced investment amounts or lower valuations in foreign mergers and acquisitions Consequently, the strength of a nation's legal and institutional frameworks significantly impacts a company's willingness to invest abroad Firms based in countries with robust anti-corruption laws tend to be more cautious about engaging in corrupt markets and may face severe repercussions internationally To mitigate the risks associated with corruption, multinational companies adopt various strategies, including outsourcing corruption risks to intermediaries and collaborating with local firms to navigate corrupt environments In some cases, businesses may opt to enter corrupt markets without direct capital investment, allowing them to participate in these economies while minimizing corruption-related costs.
Research indicates that the ownership structure of a company significantly influences the likelihood of corrupt behavior among managers (Clarke & Xu, 2004; Martin et al., 2007; Wu, 2009) This relationship is complex, particularly regarding how ownership affects managers' motivations to engage in corruption For example, managers who pay bribes for the company's benefit face severe consequences if caught, yet under limited liability, shareholders remain unpunished Consequently, managers with substantial ownership stakes may have greater incentives to engage in corrupt practices (Ramdani & Van Witteloostuijn, 2012) When management's incentives align with those of the company, the potential benefits of corruption increase, raising its likelihood Interestingly, managers of large, publicly listed companies and state-owned enterprises may be less susceptible to corruption than those with significant share ownership Additionally, low employee salaries, even in well-performing companies, can heighten the risk of corrupt behaviors, emphasizing the critical role of compensation in shaping leadership conduct (Fama & Jensen, 1983; Jensen & Meckling, 1976) Moreover, family ownership has been shown to impact the propensity for corruption and the effectiveness of anti-corruption measures (Richards & Schembera, 2019).
Furthermore, transparency can reduce corruption by increasing the risk of exposure to the public Increasing transparency can combat corruption (Halter, De Arruda, & Halter,
In recent years, extensive research on corruption has been informed by data from Transparency International and the World Bank, focusing on the influence of both external and internal factors Various studies have conducted transparency and corruption surveys to better understand these dynamics.
This perspective offers a straightforward understanding of corruption, highlighting its dynamics effectively However, a significant drawback is that companies are likely to engage in corrupt practices when the potential benefits are substantial and the chances of detection and punishment are minimal Conversely, when there is no opportunity for financial gain from corruption, organizations are less inclined to act corruptly, which contradicts some anecdotal evidence.
Individuals respond uniquely to identical situations, indicating that while rational thinking may serve as a theoretical framework for deciding on corruption, the motivations behind such behaviors are multifaceted Although financial incentives are often analyzed, the reality is that the dynamics of corruption involve more than mere monetary gain or loss Interestingly, not everyone resorts to corrupt practices, even when potential financial rewards are substantial and the costs appear minimal Thus, it is essential to explore the complex factors influencing corruption from various perspectives.
2.4.2 Perceived as an institutionalized practice
Corruption as an institutionalized practice underscores the influence of institutional behaviors in fostering corrupt activities According to institutional theory from a sociological perspective, individuals react to cognitive, normative, and regulatory pressures within their environment Extensive literature on neo-institutional theories suggests that corruption arises from these institutional practices, indicating that it is shaped not only by cost-benefit calculations but also by the shared value systems within a community In such communities, members engage more frequently with one another than with outsiders, leading to the normalization of certain practices as acceptable methods of operation Consequently, individuals face significant pressure to conform to these established practices, further entrenching corruption within the institutional framework.
Institutions often reach a consensus on appropriate actions, leading to the establishment of institutionalized practices, which are widely accepted techniques or rules (Goodrick & Salancik, 1996; Lawrence, Hardy, & Phillips, 2002) These practices become deeply embedded in society, influencing individual behavior and creating a response to social environments shaped by institutional pressures (Scott, 2013) Consequently, even negative behaviors, such as corruption, can become normalized and perceived as the standard way of operating While effective social structures, including laws and law enforcement, can mitigate corruption, the absence of accountable institutions allows such practices to persist unchallenged This institutionalization process is crucial in understanding the challenges of eradicating corruption in environments where it is prevalent and accepted.
Organizations are influenced by the actions of their leaders, who are also shaped by the social environment and institutional practices within their industry.
Institutional factors might have impacts on the interpretation of corrupt behaviors and on the boundary between ethical and unethical behaviors of an organization (Scott,
Corruption can become entrenched in organizations, particularly in environments where it is widespread, making it challenging to eradicate Executives may perceive corrupt actions as unlikely to be detected, thereby increasing the likelihood of such behaviors being adopted within their companies High-status firms, facing threats to their reputation, may resort to corruption to maintain their status, leveraging their resources and networks to facilitate these actions Initial corrupt practices can be normalized, leading to a belief that such behavior is an acceptable business strategy As a result, other companies may follow suit, further legitimizing corruption within the industry Fierce competition can also drive firms to engage in corrupt practices, as managers may view it as a necessary means to gain a competitive edge, especially if they suspect rivals are doing the same Factors influencing corrupt practices include organizational structure, institutional pressure, and industry standards, highlighting the role of both external and internal influences on perceived advantages of corruption Additionally, dysfunctional practices may emerge to cover up corrupt activities, as evidenced by auditors who may compromise their integrity through institutionalized audit practices.
From an institutional perspective, individuals often feel compelled to accept corruption as it has become an ingrained norm Companies tend to conform to local social practices to avoid exclusion from the market, fearing that government officials may favor competitors who are willing to pay bribes (Zhou et al., 2013) Consequently, firms may face significant losses if they refuse to participate in corrupt activities, leading them to adopt such practices Additionally, when a company engages in bribery, it often does so to obtain standard treatments that it rightfully deserves (Nguyen et al.).
Corruption can facilitate business operations by bypassing bureaucratic obstacles and cumbersome processes, enabling firms to navigate quicker through governmental procedures By engaging in corrupt practices, companies may avoid delays and unnecessary steps imposed by officials, thus streamlining their commercial activities.
Research gaps
This chapter offers a detailed examination of corruption, exploring its concepts, antecedents, rationales, contexts, and outcomes from both firm-level and individual-level perspectives While corruption and bribery are widely discussed topics among researchers and practitioners, numerous research questions remain unaddressed, particularly at the individual level This dissertation specifically investigates individual perspectives on corrupt behaviors, with a focus on bribe-giving actions, thereby shedding light on the motivations of bribe-offerers in corrupt transactions Bribe-giving is often driven by a rational cost-benefit analysis, where individuals are more inclined to offer bribes when the perceived benefits exceed the associated costs However, the dynamics of power interactions between citizens and officials remain ambiguous, warranting further exploration.
Recent research on bribery emphasizes cost-benefit analysis as a primary factor in decision-making, often overlooking psychological and sociological influences Individuals faced with the choice of paying a bribe to evade sanctions must assess the potential economic benefits Additionally, a profit-maximizing perspective highlights economic gains as a crucial reason behind the willingness to pay bribes.
Bribery behaviors are significantly influenced by social norms and community culture, suggesting that bribery is more of a social and cultural phenomenon than a purely rational decision based on profit motives Unlike firms, individuals may not always act based on rational incentives; instead, they often face social pressure to conform to informal corruption norms This interplay raises important questions regarding the socioeconomic status of individuals and the norms that shape their bribe-giving behaviors Therefore, it is crucial to explore how these socioeconomic factors and social norms impact bribery from an individual perspective.
The impact of an individual's social status on bribe-giving behaviors varies across different social and cultural norms Cultural norms play a moderating role in the relationship between social status and bribe decisions Additionally, it is essential to consider institutional factors that influence the interactions among social status, social norms, and bribery behaviors in various contexts This thesis aims to explore the reasons behind bribery and analyze the determinants affecting bribe-giving behaviors from an individual perspective on corruption.
This thesis seeks to fill the gap in comparative research regarding the influence of social status and norms on bribery behaviors among Vietnamese citizens compared to those in other countries It aims to conduct rigorous testing and robustness checks to analyze these relationships within Vietnam and its regional counterparts.
The research gap in corruption focuses on several key areas: first, it seeks to understand how individuals from varying social statuses perceive and engage in bribery, particularly how their bargaining power against public officials affects their willingness to give or refuse bribes Second, it examines the role of shared social norms in predicting citizens' bribe-giving behaviors Third, it explores how an individual's social status influences bribery practices across different social and cultural contexts Finally, the research aims to provide practical implications for anti-corruption strategies in Vietnam.