Elena Denisova-Schmidt

Regional differences in perceived corruption among Ukrainian firms

This paper investigates regional differences in the perception of corruption and informal practices among Ukrainian firms. Using two different data sets from Ukraine, we show that perceived corruption differs significantly across regions, even when taking into account the size, industry, workforce composition, and other characteristics of the firms based on propensity score matching. In particular, perceived corruption is highest in the Eastern oblasts and lowest in the West, which points to distinct business practices that may be rooted in the different histories of Ukrainian regions.

An experimental evaluation of an anti-corruption intervention among Ukrainian university students

In this paper, we investigate experimentally the effect of an anti-corruption intervention – an info folder based on materials developed by Transparency International – on Ukrainian university students’ willingness to participate in an anti-corruption campaign and their general attitude toward corruption. In a survey of 600 students in the Ukrainian city of Lviv, individuals were randomly exposed to either the anti-corruption folder (treatment group) or a folder with information about Lviv (control group). The results suggest that students who have previous experience with bribing are more open to the campaign, while the effect on the total sample is not statistically significant. Furthermore, the intervention increases the overall perception that corruption is a (long-term) part of society rather than a temporary phenomenon. Finally, students with experience in corrupt practices tend to adopt a more negative view of corruption. For those without such experiences, however, we find some indication that the treatment could bolster the acceptance of corruption by instructing the students about its dissemination. The effects of this intervention are therefore ambivalent and appear to depend on the students’ previous exposure to corruption.

On the development of students’ attitudes towards corruption and cheating in Russian universities

ABSTRACT Based on empirical data from selected public universities in Khabarovsk, Russia, this paper compares first- and fifth-year students regarding their attitudes towards corruption in general and university corruption in particular. Even after making both groups of students comparable with respect to a range of socio-economic characteristics by a matching approach, the results suggest that fifth-year students are more open to a range of informal and corrupt practices than first years. Our analysis therefore points to the possibility that the Russian higher education system might ‘favour’ compliance with corruption and informal practices, with potentially detrimental consequences for the Russian society as a whole.

How to Mitigate Corruption in Emerging Markets: The Case of Russia

Russian CEOs are arguably the most experienced managers in the world when it comes to working in corrupt environments. For our analysis, we gathered data from the CEOs and owners of 111 local and international companies operating in Russia. We asked them to assess their experiences with informal practices, including the extent to which their businesses are dependent on informal deals and the strategies they deploy to mitigate business corruption. The list of specific practices and strategies assembled in the pilot interviews and media content analysis has been cross-checked with the existing typologies of corruption in post-communist societies and verified through in-depth interviews. This study presents the outcomes of our analysis, one of which is that companies tend to blame officials for corrupt activities while hiding their own internal corruption from public view. Both are dependent on the industry in which they operate, however. The paper also includes the approach we developed to understand the less reprehensible but more widespread forms of corruption such as collusion, conflict of interest, cronyism and nepotism, fraud, gifts and hospitality, lobbying, abuse of power or office, and influence peddling.

Trust and Perceived Corruption Among Ukrainian Firms

This article investigates how firms build trust with one another and with third parties in endemically corrupt environments where trust is usually very low and significantly affected by corruption. Based on a representative survey of firms operating in Ukraine, an endemically corrupt environment, the authors explore some mechanisms for building trust. The study outcomes suggest positive correlations between the perception of corruption and trust among firms (especially through such mechanisms as using patronage at all levels, inviting business partners to restaurants or parties, and introducing business partners to family and friends), while other mechanisms (such as showing expertise in the field, developing communication competencies, and using notaries and lawyers to secure contracts) demonstrate no significant links. Moreover, the results demonstrate that foreign ownership might influence corruption and trust among firms. From a policy perspective, the authors recommend more work on understanding why firms engage in specific corrupt practices and less on destroying their informal relationships. International exposure might be an additional tool for mitigating corruption in Ukraine.

The Shadow Economy and Enterpreneurship In Ukraine

This chapter gives an overview of the shadow economy in Ukraine. After a short historical introduction, the authors present and compare data from 2013 and 2015 (before and after the Revolution of Dignity) and argue that Ukrainian entrepreneurs often resort to corruption in order to save their businesses, retain their employees and gain competitive advantages. This ambivalence makes it extremely difficult to implement many anti-corruption measures in the country in a successful and lasting way.

Reflective Leadership vs. Endemic Corruption in Emerging Markets

Despite decades-long efforts to eradicate it, corruption remains a major risk for doing business in emerging markets. Our study of 111 CEOs and owners of companies operating in Russia showed the ineffectiveness of universalistic top-down anti-corruption strategies at the firm level and tested a practical, bottom-up approach. We argue that strategies targeting specific business practices can mitigate corruption even in endemically corrupt environments such as Russia. The critical factor for the effectiveness of corporate anti-corruption policies is reflective leadership. We propose and describe an instrument for such leadership. We slice firm corruption into recognizable and manageable practices and offer an inventory of methods that reach out through hierarchical and network channels.

Quota for the employment of disabled people in Russia: strategies for compliance

Subject area Human resource management. Study level/applicability The case might be used in teaching International Management or Russian society at a Masters level, including MBA. Case overview Quotas for the employment of disabled people exist in many countries, including Russia. Many companies in Russia, however, are “forced” to find “creative solutions” to avoid this quota. This attitude is caused not by the unwillingness of companies to support disabled people, but rather by their moral and technical unreadiness to do so. Using one example of a company providing freight services, the case illustrates this. The company is faced with additional challenges: it is a 100 percent subsidiary, dependant on its parent company in many respects – especially in financial matters. Expected learning outcomes Students: learn some informal practices (legislative norms and networks) in the Russian business context;, discuss how organizations are faced with informal practices and establish problem solving techniques; and receive some additional information on the business environment in Russia. Supplementary materials Teaching notes.

Beg, borrow, or steal: determinants of student academic misconduct in Ukrainian higher education

ABSTRACT Actions underpinned by the lack of academic integrity are increasingly impacting academic processes within the higher education sector around the world. Bribery, plagiarism and other forms of deception that enable students to obtain undeserved grades or degree certificates undermine the purpose and mission of higher education. By drawing on a representative study conducted among 600 students in Ukraine, this paper explores the determinants of several forms of student academic misconduct and provides insights as to which groups of students are more likely to engage in either monetary or non-monetary corruption. Findings show the importance of students individual variation in ones levels of general corruption perception and moral stance on corruption, as well as the practical constraints on ones time, living conditions, willingness to study independently, gender and size of the city of origin. While paper focuses only on corruption with direct student involvement, it also outlines a research agenda by discussing the importance of second-order corruption, as well as the role of faculty members and administration in student academic misconduct. Findings will be useful for educators, policymakers and other practitioners.

Corruption, the Lack of Academic Integrity and Other Ethical Issues in Higher Education: What Can Be Done Within the Bologna Process?

Transparency International (TI), an NGO working on corruption worldwide, commonly defines corruption as “the abuse of entrusted power for private gain.” In higher education, however, corruption also encompasses “the lack of academic integrity.” The second definition applies to both public and private institutions, since what they both offer—education—can be construed as a public good. Corruption might be perceived or it might not; in higher education, however, this differentiation is less relevant. Along with the kinds of monetary and non-monetary corruption that can be found anywhere in society, such as corruption in procurement and favouritism in hiring and/or promoting employees, corruption in higher education can implicate the students themselves, thus exerting an influence over the next generation.