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Corruption in organizations -Evidence from the China Court Records

China
Organised Crime
Corruption
Decision Making
Mixed Methods
Ting Wang
Ruprecht-Karls-Universität Heidelberg
Ting Wang
Ruprecht-Karls-Universität Heidelberg

Abstract

Many empirical studies have sought to elucidate corrupt behaviors, predominantly concentrating on corrupt officials through the application of quantitative methodologies. These investigations predominantly delve into the overarching theme of how political, economic, and social environments contribute to corruption at the macro-level. However, a conspicuous gap exists in the existing research, specifically the neglect of middle-level corruption. This paper, therefore, directs its focus towards the actors involved in corruption, specifically the bribe-givers. Leveraging data extracted from the China Judgement Online database and meticulously analyzing court records, we discern a discernible variance in bribery strategies across industries and regions. The choices made by bribe-givers manifest in distinct temporal and spatial dimensions, bribe amounts, and the identities of the recipients of the bribes. Notably, long-term, and short-term bribes exhibit disparate functionalities. The reported types of corruption display substantial heterogeneity, even within comparable institutions and policy frameworks. To explicate these patterns at the organizational level, we introduce the concept of "useful illegality" (Luhmann, 1995). This behavioral paradigm affords enterprises opportunities for development, wherein bribery appears to be potentially justified and institutionalized. This observation underscores the quandary faced by enterprises in China, where accessing resources without involving the Chinese Communist Party (CCP) and the government is challenging, emblematic of the contemporary Chinese social environment. Additionally, traditional Guanxi connections play a pivotal role in long-term bribery, remaining implicit yet integral to the socioeconomic activities of Chinese individuals and organizations today. Contrastingly, the Chinese case presents characteristics indicative of organized bribery, a predicament not unique to China but prevalent globally. This phenomenon is observed in diverse countries such as Germany, Brazil, Romania, and other regions. The paper seeks to discern the features of organized bribery within an international comparative framework, aiming to contribute to efforts aimed at reducing the incidence of corruption worldwide.