Project Handling the risks of corruption successfully - University of Applied Sciences of the Grisons

As part of the project, the challenges that Swiss companies operating abroad are confronted with concerning corruption were analysed. The project had the following goals:

• Identification of a company’s existing external and internal drivers and structural factors, e.g., of SMEs with a high - or low risk of exposure to corruption.
• Evaluation of existing solution proposals to prevent corruption on the corporate level
• Development of new instruments and strategies for corruption-prevention for SMEs
• Development and implementation of guidelines for internationally operating Swiss SMEs and promoting these through events and publications

More than 500 Swiss companies were surveyed to inquire about their experience with corruption on an international level. The results show that numerous Swiss companies see themselves confronted with corrupt behavior in their international business activities. Furthermore, new and innovative instruments are needed to prevent and combat corruption successfully while doing business internationally.

The project will be expanded in 2021. This will involve a representative quantitative survey to investigate,

1. how often Swiss companies are confronted with corruption abroad,
2. how often they make informal payments or other corruption-related benefits,
3. the amount of these payments and the nature of the advantages granted,
4. what empirically validated courses of action companies can take to effectively prevent corrupt behavior.

The analysis focuses on the question of the extent to which company-specific factors (e.g. company size, age, culture, industry, markets) and risks (e.g. from/via agents, third parties) have an influence on the above-mentioned issues.

The following former employee of University of Applied Sciences of the Grisons also worked on the project:

• Katharina Becker

Publications

• Hauser, C. & Hogenacker, J. (2014): Do firms proactively take measures to prevent corruption in their international operations?, in: European Management Review, Vol. 11, No. 3-4, P. 223–237.
• Hauser, C. & Kronthaler, F. (2013): Neue Märkte, neue Risiken – Empirische Evidenz zum Korruptionsrisiko für den international aktiven Mittelstand, in: Zeitschrift für Betriebswirtschaft (ZfB), SI 4/2013, S. 37–60.
• Becker, K., Hauser, C. & Kronthaler, F. (2012): Auslandskorruption bei Schweizer Unternehmen, in: Die Volkswirtschaft, Vol. 85, Nr. 10.
• Becker, K., Hauser, C. & Kronthaler, F. (2011): Korruptionsprävention bei international tätigen Unternehmen: Ein Literaturüberblick über die Wahrscheinlichkeit, von Korruption betroffen zu sein und mögliche Massnahmen. Discussion Papers on Entrepreneurship and Innovation 5/2010, Swiss Institute for Entrepreneurship and The Research Unit for Economic Policy, Chur.
• Becker, K., Hauser, C. & Kronthaler, F. (2011): Länder- und Unternehmensspezifische Korruptionsrisiken - Hinweise aus den Entreprise Surveys der Weltbank und der EBRD. Discussion Paper on Economics and Entrepreneurial Management 4/2010, Swiss Institute for Entrepreneurship and The Research Unit for Economic Policy, Chur.
• Becker, K., Hauser, C., & Kronthaler, F. (2012b). Korruptionsrisiken erfolgreich begegnen: Strategien für international tätige Unternehmen. Chur: University of Applied Sciences of the Grisons Verlag.

In the media

• SRF ECO, 23.04.2012: Korruption bei Schweizer Firmen weit verbreitet

Parties involved

The project has been implemented by the Swiss Institute for Entrepeneurship (SIFE), in cooperation with PRME Business Integrity Action Center, the Centre for Economic Policy Research (ZWF), Credit Suisse AG and Switzerland Global Enterprise.