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Business Perspectives on Corruption : Perception and Recommendations 2014 Survey Results.

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Presentation on theme: "Business Perspectives on Corruption : Perception and Recommendations 2014 Survey Results."— Presentation transcript:

1 Business Perspectives on Corruption : Perception and Recommendations 2014 Survey Results

2 Goals Create awareness against corruption Expose business perception of the corruption Discuss policy recommendations

3 Methodology A survey is conducted in Istanbul over a sample of 801 respondents, representative of the business community. The survey is based on nine in depth interviews in Istanbul and three focus group meetings in Denizli, Gaziantep and Antalya; the opinions of 36 business people in total are taken into consideration.

4 Corporate demographics Business line SmallMediumLargeTotal Other services1174317177 Construction33252280 Wholesale & retail684333144 Accommodation366830134 Transport & communication4530580 Manufacturing835449186 Total382263156801

5 Top three problems Total Macro Problems Input PricesLaborPublic sphere problems Econ. Stability Political StabilityInf. Exch. Rates Int. Rates Gen. InputEnergy RentCostQualityTax Public Regul. Unre- corded Bribery and Corrupt. 72455578 13 8 14 3 107

6 Corruption is frequent and large scale Frequency Scale

7 The perception of frequency and scale is lower in large companies

8 Highest perception is in construction; Lowest perception is in retail business

9 Corruption is on the rise

10 …and will keep rising

11 Unfairness or corruption? Business community is a bit confused

12 Top three causes of corruption: Inequality, power seeking and lack of enforcement

13 The cost of corruption is higher for small companies %0%1-5%6-10%11-15%16-20%21-25Average Small61.313. Medium55.919. Large46.830.119.21.3 3.7

14 Economic impact: Unfair competition and shaken investor confidence Social impact : Insecurity

15 Corruption is a part of a whole What is to be done? Improving income distribution and reducing economic inequalities Education Judiciary independence and effective enforcement of the current legislation

16 Private sector still has its own to do list … 46% of the companies don’t have an ethical guidelines document. I wouldn’t report a corruption (%60) because There is no legal reporting procedure (%30) It wouldn’t yield a result (%12) I don’t want to wear myself out (%5) The system won’t reward me (%7) I am afraid that my identity will be revealed. (%6) I think today it's me, tomorrow it will be you (%1) Education

17 Goal: to create equal conditions in the market for all Examples: 1)Anti-Corruption declaration 2)Honesty agreement 3)Principle-oriented enterprises 4) Coalitions of certified companies A solution proposal: Collective Action

18 The participants supports Collective Action 67-77% of the participants state that the four kind of collective action may curtail corruption or raise awareness of its ill effects. HOWEVER Legal enforcement, auditing and clear sanctions are required. (%54)

19 Policy recommendations… Public Authorities NGO Private Sector

20 Thank you…

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