Resisting Bureaucratic Corruption: Alacrity Housing Chennai (Research Case Study)

Abstract

This case study examines corruption from the perspective of a firm. It documents the history of Alacrity Housing Chennai from the time it was set up in 1981 to 2002. During this period the company, under the leadership of Amol Karnad, became very well known for its ethical practices (for example, its refusal to bribe governmental officials) and achieved market leadership in the Chennai residential construction market with an estimated share of 25%. However, the company faced internal problems starting in 1994 that, combined with a market slowdown in the second half of the 1990s, pushed it to the brink of bankruptcy by 2002. The case offers a nuanced understanding of the benefits and costs of resisting bureaucratic (or administrative) corruption in environments where corruption is widespread.

Keywords: Corruption, ethics, values, entrepreneurship

JEL Classification: A13, D21, M13, M14