Corruption in firms, costs and risks of doing business in Russia

Ing. Olga Dasaeva

Master's thesis

Abstract:

Corruption is a vice that continues to inflict governments across the word. The level of corruption in a particular country means lack of transparency in those governments. Russia is one country that suffers greatly from the vice. The level of corruption is high due to bureaucracy in many government organizations. In order to do business in the country, an individual has to endure a long and tedious process. Many people frustrated by the process choose to cut corners by bribing officials. Giving out bribes and kickbacks is so endemic in the Russian society that people consider it as part of the normal way of doing business. There are many factors that ensure corruption remains endemic in the Russian society. Legal factors deal with the way the laws of the land and how they hinder the fight. Social factors deal with the setting of the society. The thesis will look to explore in detail the issue of corruption in Russia and how it affects the way of doing business. The main objective is to find out the causes of corruption in Russia. It will also examine the damage corruption brings to the economy and the types of businesses that are in great danger due to corruption. In the thesis, there will also be suggestions on ways that can be used to help in the prevention or reduction of corruption. The thesis also has some case studies of Russian companies embroiled in corruption and the implication that had on Russia’s economy. Bureaucracy also affects the way of doing business and the paper delves into it and also suggests ways of reducing. Reducing corruption can help attract foreign investors into Russia as many who fear corruption and red tape. Many choose to invest in countries with lower corruption and bureaucracy.

Keywords

Bribery, corruption, bureaucracy, government organizations, social factors, economic factors, legal factors-

Language used: English

Date on which the thesis was submitted / produced: 13. 4. 2015

Thesis defence

• Date of defence: 18. 6. 2015
• Supervisor: Mgr. Ing. Petr Wawrosz, Ph.D.
• Reader: doc. Ing. Karel Havlíček, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Business Management and Corporate Finance