Title: The culpability of accounting practice in promoting bribery and corruption in developing countries

Authors: Olatunde Julius Otusanya; Sarah Lauwo; Amal Hayati Ahmad-Khair

Addresses: Department of Accounting, Faculty of Business Administration, University of Lagos, P.O. Box 354 Unilag, Akoka, Yaba, Lagos State, Nigeria ' Department of Accounting, Aston Business School, University of Aston, UK ' Department of Accounting and Finance, Hull University Business School, University of Hull, UK

Abstract: Bribery and corruption are increasing in the developing countries. It has been estimated that some $400 billion of bribe is paid to political elite in developing countries. Such huge amounts of money cannot be successfully executed without the active involvement of multinational companies (MNCs) from the Western countries. This paper examines the processes involved in the misapplication of accounting practice from the perspective of anti-social criminal practices. It analyses the implication of accounting practice in the construction of MNCs bribery and corruption activities. The paper locates MNCs enterprise culture and accounting practice within the broader dynamics of global capitalism to argue that the drive for higher profit at almost any cost is not constrained by accounting rules, laws and even periodic regulatory actions. The paper uses publicly available evidence to illuminate the role of accounting technology in concealing and facilitates MNCs corrupt practices in developing countries. Evidence is provided to show that to secure and retain business in developing countries and to gain competitive advantages MNCs have engaged in bribery and corruption. The paper also makes suggestions for reform.

Keywords: accounting; bribery; corruption; multinational companies; developing countries; transparency; accountability.

DOI: 10.1504/IJEA.2017.089387

International Journal of Economics and Accounting, 2017 Vol.8 No.2, pp.106 - 137

Received: 23 Nov 2016
Accepted: 16 May 2017

Published online: 11 Jan 2018 *

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