| For your convenience we collected links to other anti-corruption and pro-ethics websites. We hope those will help you solve your problems. If not, you can always come to us to solve them faster, gentler and more profitably. Please use your critical judgment in choosing which information and whose help to use. The World Bank Transparency International OAS Anti-Corruption Page International Chamber of Commerce Anti-Corruption Resource Centre OECD Anti-Corruption Group Canadian Centre for Ethics and Corporate Policy Center for Ethical Business Cultures Global Integrity Business Anti-Corruption Portal Ethics World Suggest to us other links to post here. |
LINKS TO OTHER SITES
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| A Division of Fallibility Management Group |
| CorruptionManagement.com |
Clean out all wrongdoing. Quickly and profitably.
| The Cost of an Opportunity Let’s start with the big picture. The World Bank estimates that bribery alone costs the world about one trillion dollars annually in direct economic loss. That’s every year. By simple extrapolation one can safely assume that the world’s losses from all forms of corruption, malfeasance and wrongdoing are at least three trillion dollars a year. And, if you have a problem picturing this much cash, imagine 600 railway cars creaking under 30,000 metric tons of $100 bills (for comparison, $50,000 is just half a kilo.) These $3 trillion – amount larger than the GDP of France or Germany – are simply wasted every year. You could as well picture those hundreds of rail cars burning… Meanwhile just one tenth of this amount, a still whopping $300 billion (nearly the GDP of Argentina) could feed all hungry, re-build a few poor countries like Haiti or Afghanistan, save tropical forests or even reverse global warming in our lifetime. Name your cause and, if money can solve it at all, it can be solved by an annual infusion of 300 billion dollars …Which is, again, only 1/10th of the money that is lost every year due to bribery, malfeasance and abuse. Can we turn this $3,000,000,000,000 a year problem into a $3,000,000,000,000 opportunity? Yes, but not with noise, red tape, and prisons, the way we’ve always tried. We posed the following three questions to professionals in the fields of law-enforcement and compliance management: 1) How many additional auditors, detectives, prosecutors, and various watchdogs (to police the policemen, etc.) do we need to defeat corruption and malfeasance in the entire world, both in government agencies and in the private sector (i.e. Enron and WorldCom)? 2) How much would such a “Global War on Corruption” cost? (Add the cost of new courts and prisons as well.) 3) If the funding for the “war” were to end on the day of corruption’s defeat, how long would the results of the victory last? The answers came to: 1) Tens of millions of people; 2) Hundreds of billions of dollars; 3) About a week… Just like jealousy and greed, corruption is self-creating, self-sustaining phenomenon. The numbers sound realistic, yet they show the insanity of traditional approaches to fighting corruption. Which government can employ millions of people and spend countless billions (upfront!) to buy such a fleeting victory? What can a poor government do? - Perhaps read the rest of this page, because we came with radically different answers: 1) Not a person. 2) Not a penny. 3) Forever. Okay, you must be skeptical: if you've ever fought corruption and malfeasance (and we have), you know that even transparency - the cornerstone of modern anti-corruption campaigns - requires competent people to dig through mountains of data, unambiguously show malfeasance, and then have a voice powerful enough to demand change. At the end of the day, all conventional anti-corruption and compliance methods are either expensive or ineffective, or both. It doesn’t have to be this way. At its core, corruption and malfeasance result from the failure of administrative systems to control selfish entrepreneurial urges of people. These entrepreneurial urges are rooted in self-interest and cannot be permanently removed by more prosecutors, more technology or moral education: selfish entrepreneurship (often called “capitalism”) seems to win every time. However, our proprietary management system solves the problem by working with people’s selfish interests, instead of against them, shrinking corruption very quickly and profitably. People Cheat, Systems Don’t Have you heard the famous expression that the American democratic system was “designed by geniuses to be run by idiots”? Regardless of the degree of its literal truth, the phrase reveals the idea that instead of relying on goodness of individual actors, a high-quality organizational system should enhance people’s ability to create positive outcomes while effectively canceling out their bad, including corrupt, tendencies. We designed such a system. While we can’t publish it out here (it can be profitably used in any commercial setting) below is a quick look of how it works. The system capitalizes on the fact that people generally act in remarkably predictable patterns, with members of established organizations acting especially predictably. It uses the basic human factors of self-interest and peer-pressure - the same fuel that leads to malfeasance in the first place - to replace corrupt behaviors with productive ones. Indeed, the system makes even the most dishonest employees participate in removing malfeasance from their organizations themselves. “It Takes a Thief to Catch a Thief” In a perennially theft-ridden dairy plant where our method was first used, thefts by employees plunged by 90% in the first two months. On top of this, without any push from the managers, the employees reduced production-related losses (considered in the industry as “normal”) by an unbelievable 80%, moving the factory from chronic arrears to a consistent surplus in production. In another situation, a construction unit staffed with former felons and delinquents who took great pride in never filling their quotas started fulfilling daily quotas by lunch-time within days of implementing our model. In every case employee morale went through the roof and management was elated to switch their attention from employee control to more important business tasks. No, the success didn’t mean that the previously slothful, incompetent and dishonest had miraculously acquired new personalities (not overnight, anyway.) It simply meant that within their groups the employees drove each other to behave far more productively, and that drive for personal and team satisfaction led to skyrocketing productivity which beat the performance of even honest, more competent and hard-working people organized in more conventional teams. Instead of the usual red tape, our system employs the peer-driven verify-and-trust method that fluidly changes the allocation of trust to each individual within the organization. Not even the smartest rule-breakers can fool it: the system rapidly adapts to their level of sophistication, and they either give up wrongdoing or are weeded out by their own peers. Where bosses and outside watchdogs might fail to spot a well- camouflaged elephant, peers organized in this particular fashion won’t miss a thing. At the very same time the system gives people a ready outlet for their entrepreneurial urges, channeling those urges towards organizationally valuable/profitable outcomes, and since the system starts to work in every nook and cranny of the organization at once, it cleans even the most ethically challenged places faster and more thoroughly than any other approach. Whatever, Whenever Our experience and research confirms that this universal management/governance system will work equally well in any nation, any industry and in an organization of any size: from a small government office to an entire government structure of a country like China; from a family-owned shop to the largest multi-national corporations. In technology parlance, ours happened to be an “infinitely scalable” system: if you can de-corrupt a small group, you can do the same for an entire government. Don't forget: even massive organizations consists of small groups of people lumped into larger ones. Whatever your definition of corruption and malfeasance - bribery, misallocation of funds, employee theft, or unethical behavior of various forms - our method can end it without new watchdogs and prisons. Privacy advocates should particularly note that the system does not require wide-open public transparency and thus rarely brings bad publicity to the agency/organization. Because our system automatically brings out the best in people and reduces the worst in them, one need not have even a single conscientious employee before adopting it. As long as there is someone capable of ordering the system to be put in place, that is enough. Once installed, the system starts a non-stop cycle of "behavior purification" within the organization, making even the dishonest eliminate wrongdoing with their own hands: first, they stop the worst behaviors, then second-worst, and so on, rapidly raising the bar of acceptable conduct. Despite such a seemingly gradual approach, even in a worst-case scenario, where installation of the system is sabotaged by management, one can fully expect all forms of illegal and unethical behavior to decline by half every six months (although in most cases malfeasance will fold by half every month.) Continued use of our system will result in a permanent solution. No Cost solution The use of our system costs our clients nothing. Unless our “ounce of cure” starts to bring pounds (or literally tons and rail cars full) of savings and profit, it is totally free. In fact, we would gladly pay back the implementation costs as a guarantee that the system works. However, its users have no such costs – the implementation is nothing more than the usual administrative activity whose intensity decreases upon the system’s adoption: i.e. savings begin right away. What’s our gain, you might ask? – A percentage of the solution related savings/profits that the business or government will enjoy. We are talking a small fraction of the money which can’t be realized without our help. We encourage potential users to explore all other methods first. As you can see, we even compiled the links to other anti-corruption and pro-ethics websites for convenience. The potential users should call us after they know that other methods won’t work to their complete satisfaction. Then we’ll gladly help them clean out all wrongdoing that is still left in their organization or the entire government structure. Note to concerned citizens If we continue to battle corruption and malfeasance the way we’ve done it for centuries: creating more red tape and bloating oversight bureaucracies, we will continue to do so for generations to come. However, if we use the simple (and effectively free!) organizational tools available here today, we can eliminate corruption in no time and recover not just the annual $3 trillion that are lost to the world overtly, but create another $3 - 5 trillion lost in hidden economic value which is explained on the next page ("More".) So, dear friends, point to your leaders that the elimination of corruption and waste is no longer a matter of resources, expertise and possibilities. It’s a matter of choice: do you want it or not? info@CorruptionManagement.com |