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PurposeBecause cultures operate in very different ways, different activities are corrupting in different parts of the world. Taking the view that corruption is an activity that tends to undermine a cultural system, this paper aims to examine this issue.Design/methodology/approachThe paper analyzes real‐life situations in Japan, Taiwan, India, China, North America, sub‐Saharan Africa, the Middle East, and Korea to distinguish actions that structurally undermine a cultural system from those that are merely inefficient or are actually supportive.FindingsCultures have fundamentally different behavioral norms due to their different conceptions of human nature. They can be broadly classified as rule‐based and relationship‐based, distinguished by the fact that behavior is regulated primarily by respect for rules in the former and authority figures in the latter. Corrupting behavior differs around the world partly because of different norms, and partly because cultural systems break down in different ways. Activities such as nepotism or cronyism that are corrupting in the rule‐based cultures of the West may be functional in relationship‐based cultures. Behavior that is normal in the West, such as bringing lawsuits or adhering strictly to a contract, may be corrupting elsewhere. Practices such as bribery that are often corrupting across cultures are nonetheless corrupting for very different reasons.Originality/valueThe paper provides culturally sensitive guidelines not only for avoiding corruption but also for understanding the mechanisms that make a culture work.

PurposeThe purpose of this paper is to examine differences in managers' and employees' attitudes about fraud across different cultures, provide some theories as to why these differences exist, give some recent examples of cultural differences in ethical perceptions from practice, make recommendations as to how companies can address this issue and make improvements to their anti‐fraud programs based on the country and culture in which they operate, and suggest some opportunities for future research.Design/methodology/approachThe paper takes the form of a literature review.FindingsA great deal of future research is needed to examine the effects of culture on the critical elements of managements' antifraud programs and controls that may be most effective in combating corruption, including the whistleblower hotline, internal audit, surprise audits, management review of internal controls, rewards for whistleblowers, and mandatory job rotation.Originality/valueThis is one of the first papers reviewing the literature on cross‐cultural fraud and identifying opportunities for future research.

The purpose of this ebook is to bring attention to many of the ethical issues that individuals, organizations, and even society must face as they engage in international business and explore new ways of understanding the cultural implications of the constructs of fraud and corruption

The purpose of this ebook is to bring attention to many of the ethical issues that individuals, organizations, and even society must face as they engage in international business and explore new ways of understanding the cultural implications of the constructs of fraud and corruption

Cryptocurrency, and especially Bitcoin, has struggled to gain recognition as a legitimate currency from governments, financial institutions, and consumers. This has occurred because many analysts and consumers believe that Bitcoin is not a stable and consistent store of value, a unit of measurement, or a medium of exchange. One way to overcome this challenge is for Bitcoin to be used as both a currency and store of value by a greater percentage of the world's population. This paper seeks to identify how a change in Bitcoin's monetary measurement (or denomination) can more easily facilitate Bitcoin transactions to increase its use. Specifically, we posit that applying whole number bias theory, from the cognitive psychology and mathematics fields, to Bitcoin's unit of measurement will allow the value of Bitcoin to be referenced in smaller and easier tounderstand units with fewer numbers after the decimal point—such as the "Bit" or the "Satoshi." In the process, the use of Bitcoin will include more whole numbers and allow the general public to more easily assign value to Bitcoin in day-to-day transactions.

PurposeThis paper sets out to discuss white‐collar crime and fraud in China and to draw implications for Western businesses wishing to enter the Chinese market.Design/methodology/approachThe paper provides examples of recent frauds committed in China and also provides a brief review of the literature. It traces the development of China's economy, describing China's modern‐day economy, and also looks at cultural issues and differences between Western and Chinese attitudes.FindingsWestern businesses planning to enter the Chinese market need to do their due diligence before committing resources. What works in Western society may not work in another culture, like China's. However, gaining an understanding of the culture and general way of life will go a long way towards laying the groundwork for success.Research limitations/implicationsAdditional focus should be placed on examining how cultural differences affect judgments and behaviors.Originality/valueFrom a practical standpoint, the paper provides insights into possible areas of disagreement between employees from different cultures that can result from their divergent opinions about individuals' responsibility for fraudulent acts.

PurposeThe literature states that rationalization strategies contribute to a spread of corruption in organizations. They are supposed to serve not only as post hoc justifications but also as ex ante determinants of corrupt behavior. This empirical study aims at challenging this theoretical assumption.Design/methodology/approachThe authors gained empirical data in a business simulation game where participants had the opportunity to act corruptly. The sample included both university and high school students.FindingsThe results show that post hoc rationalizations primarily highlight the "positive" intention behind corrupt action. As relationships with important person‐based determinants of corruption are lacking, it is questionable whether rationalization strategies possess potential as ex ante determinants of corrupt behavior.Research limitations/implicationsThe design of the study only assesses rationalization strategies post hoc. Therefore it does not allow for examining causal effects, only the investigation of relationships. Future research should aim at addressing this issue, including both ex ante and post hoc assessment of rationalization strategies.Originality/valueThe paper is a first attempt to examine empirically the function of rationalization strategies in the context of corruption in organizations.

PurposeThe purpose of this paper is to investigate whether the existence of a professional oversight body and certain country‐specific education regulations in auditing are associated with a country's perceived level of corruption.Design/methodology/approachDrawing on data from the International Federation of Accountants (IFAC) database, the authors used the Mann‐Whitney U analysis technique to test the difference between countries' perceived level of corruption based on whether they have or have not developed professional oversight bodies and licensing regulations.FindingsResults suggest that countries that have established an audit profession oversight body are, indeed, perceived to be less corrupt. Similarly, countries that require practical experience, academic study, and a licensing examination in order to practice auditing are perceived to be less corrupt. On the other hand, the analysis shows that requiring auditors to fulfil continuing education requirements is not significantly related to a perception of lower levels of corruption.Practical implicationsThe paper provides important insights for policy makers, business leaders, education and the audit profession as a whole.Originality/valueThis paper provides some of the first empirical support for the relationship between corruption and the use of oversight bodies and licensing regulations in professional auditing at a country level.

PurposeThe purpose of this research is to determine the likelihood of financial statement manipulations in companies throughout a variety of emerging market countries and compare this potential wirh that of firms within the USA.Design/methodology/approachThe authors utilize the Fraud Score Model, as set forth by Dechow et al., to determine the likelihood of financial statement manipulations. By adjusting their model to work in an international setting, the authors are able to study nine industries across 23 countries, including the USA.FindingsThe results vary from industry to industry, with some countries performing extremely well in one industry, only to prove remarkably risky in the next.Originality/valueThe findings may be used by a variety of market participants, especially investors, to determine the risk levels of potential foreign investments. Therefore, this research can help lead to a more overall efficient placement of global capital.

Los procesos electorales, históricamente, han sido susceptibles de fraude. Las legislaciones electorales de los países tratan, en mayor o menor grado, de proteger los procesos electorales de acciones fraudulentas, a través de procedimientos e incluso de mecanismos tecnológicos. En algunos casos, la implementación de tecnologías de la información y de la comunicación ha jugado un papel importante en ese sentido y, en algunos países, se ha logrado disminuir el nivel de fraude. En este trabajo se propone identificar los factores que influyen en el cometimiento de un fraude electoral, a partir de la teoría clásica del triángulo del fraude. El enfoque principal es identificar las oportunidades percibidas (uno de los elementos del triángulo del fraude). Se conceptualiza el proceso electoral y se presenta el modelo de una instancia particular. A partir de ese modelo conceptual se propone un marco de referencia que ayudará a identificar las oportunidades percibidas de cometer fraude.