Compiler Technology

Cartel Laws Undermined: Corruption, Social Norms, and Collectivist Business Cultures

“…82 Apart from the possibility of being ostracized from the business community and connected social network, a loss of guanxi can make it a lot harder to borrow money from banks and may even adversely affect treatment by public authorities. 83 Parallels can be drawn in this respect with a number of other countries including Greece, those in Latin America, and former communist nations. 84 In relation to Russia for example, Boots notes how`the well connected managers and bureaucrats of the Soviet era have become today's corporate elite' by capitalizing on their social relationships.…”

“…91 However, there is some relationship between wealth and individualism, and the World Bank notes a positive correlation between 363 88 A discussion of possible implications for cartel enforcement with reference to a combined index of the second and fourth dimensions is contained in C. intrinsically superior to those based upon impersonal laws'. 96 Conventional cartel enforcement tools of acting on complaints, imposing high fines and granting generous leniency are likely to be ineffective against collectivist business cultures, where social mechanisms are used to uphold agreements. Coupled with cultures in which confrontation is always avoided because it is considered socially disruptive, these mechanisms also make private enforcement very unlikely.…”