Enhancing Business Integrity as a Mechanism for Combating Corruption and Shadow Schemes in the Country

Abstract

This paper summarizes the arguments and counterarguments within the scientific discussion on the relationship between business integrity and corruption in the country. The main purpose of the research is to analyze the mechanism of the business integrity impact on combating corruption and shadow economy in the country and identify key triggers for violating the business integrity principles. The relevance of this scientific problem is that corruption is gradually turning from a domestic problem into a global threat, which requires changing the combating and detecting corruption instruments. Investigation of the relationship between the corruption level in the country and the shadow economy scale in the paper is carried out in the following logical sequence: at first, scientific publications on corruption and integrity in the corporate sector are monitored, then, current and retrospective levels of corruption in Ukraine and the world are assessed and triggers of breach the business integrity principles are identified. Methodological tools of the research methods were empirical (observation, description) and theoretical (grouping, synthesis, abstraction) research methods. A comprehensive analysis of corruption from the standpoint of the diachronic relationship between wrongdoers and recipients has shown that bribery costs will outweigh the benefits to the entity in the long run. According to the results of the study, it is established that breach of the integrity principles by business representatives arise due to gaps in the regulatory framework and unregulated by law certain aspects of the enterprise; non-transparent procedure of interaction with public authorities; low working conditions for state regulation, supervision and control bodies; lack of a formalized procedure for lobbying the interests of stakeholders in public authorities; high level of oligarchization in society. The article substantiates that the creation of a culture of business integrity will have a synergistic effect on the development of the national economy by increasing transparency and transparency of public authorities, increasing foreign investment, increasing the competitiveness of domestic products at the international level, implementing innovative projects, improving welfare.