The culpability of accounting practice in promoting bribery and corruption in developing countries
by Olatunde Julius Otusanya; Sarah Lauwo; Amal Hayati Ahmad-Khair
International Journal of Economics and Accounting (IJEA), Vol. 8, No. 2, 2017

Abstract: Bribery and corruption are increasing in the developing countries. It has been estimated that some $400 billion of bribe is paid to political elite in developing countries. Such huge amounts of money cannot be successfully executed without the active involvement of multinational companies (MNCs) from the Western countries. This paper examines the processes involved in the misapplication of accounting practice from the perspective of anti-social criminal practices. It analyses the implication of accounting practice in the construction of MNCs bribery and corruption activities. The paper locates MNCs enterprise culture and accounting practice within the broader dynamics of global capitalism to argue that the drive for higher profit at almost any cost is not constrained by accounting rules, laws and even periodic regulatory actions. The paper uses publicly available evidence to illuminate the role of accounting technology in concealing and facilitates MNCs corrupt practices in developing countries. Evidence is provided to show that to secure and retain business in developing countries and to gain competitive advantages MNCs have engaged in bribery and corruption. The paper also makes suggestions for reform.

Online publication date: Mon, 22-Jan-2018

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