Association of National Dimensions of Culture with Perceived Public Sector Corruption

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Denis A. Coelho Human Technology Group, UBI, 6201-001 Covilhã, Portugal

Transcript of Association of National Dimensions of Culture with Perceived Public Sector Corruption

Denis A. Coelho

Human Technology Group,

UBI, 6201-001 Covilhã, Portugal

summary

introduction

transparency international (TI)

corruption perception index (CPI)

national dimensions of culture (NDCs)

power distance

individualism, masculinity

uncertainty avoidance

Pearson correlation

discussion

public sector corruption (PSC) is currently

one of the most talked about problems in the

world

focus on association of perceived PSC with

Gert Hofstede’s (1983) national dimensions

of culture (NDCs)

based on Transparency International’s 2014

CPI covering 175 countries and territories

resulting in cross contingency data for 69 of

those

2 out of 6 NDCs associated with the CPI

corruption comprises illegal activities

deliberately hidden and that only come to

light through scandals, investigations or

prosecutions

no meaningful way to assess absolute levels

of corruption in countries or territories on

the basis of hard empirical data

capturing perceptions of corruption of those

in a position to offer assessments of public

sector corruption is a reliable method of

comparing relative corruption levels

in the early 1990s, no global convention

aimed at curbing corruption

companies regularly wrote off bribes as

business expenses in their tax filings

graft of some longstanding heads of state

was legendary

international agencies were resigned to

corruption sapping funding from many

development projects around the world

established in 1993 to take on the taboo

in 2014, Denmark occupied the top spot as

the world’s least corrupt nation (NZ in 2nd

place) while Somalia and North Korea were

tied for the most corrupt countries

CPI is not a verdict on the levels of

corruption of entire nations or societies, or

the activities of their private sector

citizens of countries that score low often

show concern and condemn corruption as the

public in countries that perform strongly

cross-validated in empirical study for

Belgium, Denmark, Germany, United

Kingdom, Greece, Spain and the Netherlands

country scores on the dimensions are relative

- societies are compared to other societies

relative scores have been proven to be quite

stable over decades

forces that cause cultures to shift tend to be

global or continent-wide

when cultures shift, they shift together;

relative positions tend to remain the same

extent to which less powerful members of

organizations expect power to be equally

distributed

low power distance (pdi) countries have

limited dependence of subordinates on their

bosses; power and decision-making is very

decentralized (e.g. Austria, Israel)

in high pdi countries, hierarchy is the

fundamental principle on which all

relationships are based (e.g. Malaysia, Slovak

Rep.)

degree to which people are oriented towards

acting as individuals as opposed to as a group

in individualist countries people tend to

value individual success and achievement,

are autonomous and confident, relying

primarily on their own ideas (e.g. USA, AUS)

in collectivist countries, people are bound in

groups such as the extended family or the

village; more likely to rely on information

provided by others in formulating their

opinions (e.g. Guatemala, Ecuador)

extent to which success and aggressiveness are valued

high masculinity countries - high earnings, advancement through opportunities and challenging work are cherished; use of information in decision-making is dependent on its expected effectiveness in gaining advantage over competitors (e.g. SLVK, JP)

high femininity countries cherish relationships, concern for others, inclusiveness and society’s best interest; cooperation is often visible; use of information to support decision-making is very typical (e.g. SVE, NO)

degree to which people feel confident about

the future

cultures that score high in uncertainty

avoidance have an emotional need for rules

(e.g. Greece, Portugal)

cultures that score low in uncertainty

avoidance dislike formal rules, setting them

only when necessary (e.g. Singapore,

Jamaica)

2 significant strong associations were found

power distance is negatively associated with

the CPI 2014 (n=69) with r=-0.6503 (p<0.001)

higher power distance cultures (with highly

centralized power and decision-making) tend

to have lower CPI scores - more perceived

public sector corruption

countries with lower power distance (with

decentralized power and decision-making)

tend to have higher CPI scores - less

perceived public sector corruption

individualism vs. collectivism is positively associated with the CPI 2014 (n=69): r=+0.6651 (p-value<0.001)

individualistic cultures (individuals are autonomous and confident) tend to score high on the CPI - low levels of perceived public sector corruption

collectivist societies (people are more likely to rely on information provided by others in formulating their opinions) tend to show lower CPI - higher levels of perceived public sector corruption

power distance, was previously correlated

with income inequality, and individualism

with national wealth

hence, income inequality and national

wealth would logically associate with the CPI

association between national wealth and the

CPI (less corrupt countries are also richer)

already shown by Paulus & Kristoufek (2015)

power distance and uncertainty avoidance

also associated to traffic deaths

pdi, idv & uai NDCs - very powerful indicators

Thank you!

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