Reflective Leadership vs. Endemic Corruption in Emerging Markets

20 Pages Posted: 2 Jan 2014  

Stanislav Shekshnia

INSEAD - Entrepreneurship and Family Enterprise

Alena Ledeneva

University College London

Elena Denisova-Schmidt

Harvard University - Edmond J. Safra Center for Ethics

Date Written: January 2, 2014

Abstract

Despite decades-long efforts to eradicate it, corruption remains a major risk for doing business in emerging markets. Our study of 111 CEOs and owners of companies operating in Russia showed the ineffectiveness of universalistic top-down anti-corruption strategies at the firm level and tested a practical, bottom-up approach. We argue that strategies targeting specific business practices can mitigate corruption even in endemically corrupt environments such as Russia. The critical factor for the effectiveness of corporate anti-corruption policies is reflective leadership. We propose and describe an instrument for such leadership. We slice firm corruption into recognizable and manageable practices and offer an inventory of methods that reach out through hierarchical and network channels.

Keywords: Leadership, Bussines Corruption, Anti-corruption Strategies, Informal Practices, Emerging Markets, CEO, Russia

Suggested Citation

Shekshnia, Stanislav and Ledeneva, Alena and Denisova-Schmidt, Elena, Reflective Leadership vs. Endemic Corruption in Emerging Markets (January 2, 2014). INSEAD Working Paper No. 2013/121/EFE. Available at SSRN: https://ssrn.com/abstract=2373889 or http://dx.doi.org/10.2139/ssrn.2373889

Stanislav Shekshnia (Contact Author)

INSEAD - Entrepreneurship and Family Enterprise ( email )

F-77305 Fontainebleau Cedex
France

Alena Ledeneva

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Elena Denisova-Schmidt

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

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