The Link between Corporate Governance and Corruption in New Zealand
New Zealand Universities Law Review, Vol. 24, No. 1, p. 42, 2010
39 Pages Posted: 24 Oct 2010 Last revised: 1 Nov 2010
Date Written: October 21, 2010
Corporate corruption, in contrast to public sector corruption, has recently attracted increasing attention – mostly due to corporate scandals occurring internationally over the last decade. As the financial and social impact of corporate corruption can be immense, the corporate world needs to address this issue. The recent global financial crisis has further revealed the shortcomings of existing regulation. This article advances the legal debate about corporate corruption by approaching it from a corporate governance and company law perspective. Focusing on a New Zealand context, it is ultimately demonstrated that the corporate structure itself as well as the existence of poor corporate governance practices may contribute to the susceptibility of corporations to corrupt behaviour. Evaluating legal countermeasures, we arrive at the conclusion that initial steps have yielded a positive effect. However, these efforts need to be continued and advanced in order to significantly curtail opportunities for corrupt activities in corporations.
Keywords: corporate governance, corruption, fraud, directors
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