In the last few decades attention has shifted from the so-called demand-side to the supply-side of the fight against corruption. A global consensus repudiating corruption in international business is now in place. The widespread emergence of Compliance departments in multinational corporations across the globe reflects an acceptance of anti-corruption initiatives as a crucial aspect of the social performance of corporations. The ‘success’ of anti-corruption initiatives provides valuable insights as to why certain types of CSR initiatives have achieved a prominent position in the global CSR agenda.
This paper argues that the reason why anti-corruption initiatives have gained such a significant foothold can be linked to the involvement of private actors in the processes of implementing global anti-corruption standards. A combination of hard and soft law mechanisms, self-regulation, self-policing, self-referral and private legal actions have created a carrot and stick dynamic that encourages and rewards corporate and private actor participation. Corporations and private individuals are now more directly involved in the sanctioning processes of corruption. Indeed, in the implementation of anti-corruption laws, the private sector is emerging as much a partner as it is a subject. Exploiting the ‘self-interest’ of corporations and empowering the private litigant are important catalysts for the prominence of corruption on the global CSR agenda.
In addition, the move away from state-centered sanctioning processes to more diffuse private-actor-rich processes avoids the pitfalls of traditional criminal law enforcement and better reflects the international environment where corrupt transactions occur. This emerging ‘hybrid’ public/private regulatory framework is creating an environment where the choice for compliance with anti-corruption rules is not just the right choice but also the pragmatic choice for corporations. Not surprisingly anti-corruption policy and planning has moved from the periphery to become a central point of corporate decision making.
