What is corruption and bribery in supply chain

• Corruption is a broad term that includes bribery, but also encompasses other forms of dishonest or fraudulent conduct by those in power, such as embezzlement, nepotism, and extortion. In a supply chain context, it can manifest as officials demanding payments for permits, preferential treatment, or overlooking violations.

• Bribery is a specific form of corruption where something of value (money, gifts, favors) is offered, given, or accepted to influence a decision or action. In a supply chain, this could involve a supplier bribing a procurement manager to secure a contract, or a company bribing a customs official to expedite goods.

These practices undermine the integrity of the supply chain, leading to increased costs, reduced quality, unfair competition, and significant legal and reputational risks for all parties involved.