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Other definitions related to corruption

22 August

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Supply chain, procurement, transparency – these terms are mentioned often in the context of corruption. While this is not an exhaustive list, below we present definitions of some of the terms that crop up frequently:

  • Cartel – an agreement (formal or informal) among competing companies to co-ordinate prices, marketing and production. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion is to increase individual members' profits by reducing competition.
  • Conflict of interest – arises when an individual with a formal responsibility to serve the public participates in an activity that jeopardises his or her professional judgment, objectivity and independence. Often this activity (such as a private business venture) primarily serves personal interests and can potentially influence the objective exercise of the individual's official duties.
  • Irregularities – these are deviations from the prescribed process. Corruption Watch’s Constitutional Court submission noted that small irregularities are often symptoms of larger problems, and that irregularities of all types act as red flags or indicators of corruption.
  • Procurement, specifically public procurement – the buying of goods and services by government organisations.
  • Supply chain – the network of all the individuals, organisations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials to the manufacturer, through to its eventual delivery to the end user.
  • Tender - to invite bids for a project. It usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted by a stipulated deadline. If a company puts work out to tender, it asks people to make offers to do the work.
  • Transparency – Transparency is the quality of being clear, honest and open. It implies that civil servants have a duty to act visibly, predictably and understandably. Transparency requires that decisions and actions are taken openly and that sufficient information is available so that other agencies and the general public can assess whether the relevant procedures are followed.
  • Whistleblower – can be defined as an employee, former employee, or member of an organisation who reports misconduct to people or entities that are able to take corrective action. National legislation in the US, UK, Australia, South Africa, the Republic of Korea and others establishes different degrees and types of protection of whistleblowers in the private and public sector.

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