Corruption in the global economy is a topic that has been discussed in many of my International Business courses. Over the past few semesters, I have become familiar with this topic and all of its complexities. For many international companies, corruption is apart of their everyday discussions on their company’s operations and ethics.
This article discusses an anti-corruption sweep in Saudi Arabia. The current King ordered this sweep because he believes the corruption in the country is hindering economic development. Many high-ranking officials and influential businessmen were arrested for their suspected corrupt actions. Among these men is Prince Alwaleed bin Talal. Alwaleed is very involved, not only in the Saudi Arabia’s economy, but also the United State’s economy. He is a large shareholder in Citigroup, Apple, Twitter, and the Plaza Hotel in New York. His influence in American markets makes his arrest alarming for those who have a stake in those businesses that he owns shares in. As of now, there is no information about the types of corruption he is accused of but he will be facing trial in the near future.
Corruption can be a difficult topic to discuss but one that must be addressed for any student who hopes to engage in international business. One can find that corruption may be closely integrated into the culture of a society. It may also be hard for companies who do not wish to engage in corruption to be competitive in a country that allows corruption occur. Companies must decide if their ethics are above engaging in corruption or if they see corruption as necessary tool to do business in certain countries.
As an international business student, I understand how some companies might see corruption as just a common occurrence in some markets, but I also recognize the need for companies to refuse to engage in corrupt acts. By foreign companies participating in corruption, they hurt the economic growth of the developing home country. It forces smaller companies to go out of business if they don’t want to engage in corrupt acts or if don’t have the means to participate in corruption. Corruption can kill competition in the market and ultimately hurts the consumers. Although this anti-corruption sweep is shocking to all those involved, I comprehend why it is necessary and how Saudi Arabia can benefit by the elimination of corruption.
