Corruption is an illegal practice, perpetrated by individuals or groups, of misuse of public office in order to acquire financial gain, property, and other valuable items, or favors. Corruption has various legal and practical manifestations - fraud, embezzlement, nepotism (cronyism), extortion, theft, bribes, kickbacks, and conflicts of interest. Corruption can be divided by the level of power on which it is implemented. Administrative corruption refers to the practice of low or middle-level bureaucrats and politicians. High-level corruption involves the illegal gains by the members of the highest level of government – executive, legislature, judicial, and military. If this kind of corruption becomes so prevalent that accounts for a significant percentage of national GDP or budget then it is called “state capture”. Corruption has negative effects on all levels and aspects of society. Corruption leads to a decrease in public trust in government and state institutions; it undermines democracy and the rule of law; and blocks or slows down economic development.

References:

Lijphart. Patterns of Democracy: Government Forms & Performance in Thirty-six Countries (1999);

 Meyer. Globalization and Organization (2006);

     -     World Society: The Writings of John W. Meyer (2009);

Sutherland. White Collar Crime (1949).