This guide is based on insights from data collected from investors by the PRI, as well as a series of interviews with investors and feedback from companies collected by the UN Global Compact. Every year, corruption losses represent over 5% of global GDP (US$2.6 trillion) and bribes exceed US$1 trillion. This is a cost which can be brought to bear on companies and their investors, and one that is detrimental to governments and society. Corruption adds up to 10% to the cost of doing business globally and up to 25% to the cost of procurement contracts in developing countries.
Corruption is best understood as a shorthand reference for a wide range of activities that encompasses bribery as an important subset. Corruption scandals including bribery, fraud, rate and test rigging, can prove catastrophic to companies.