Problem on corruption

Money has become more important to human in such way that they have forgotten about
humanity. Small items are also turning expensive these days. Middle class people have lost
their way. Now they really dont know about the ways of survival. This money has created
number of problems. This has given birth to bribery and corruption. Corruption is the misuse
of entrusted power for personal or private gain. Generally speaking, corruption exists when a
person in power has the right to make decision that concern others whose interest are at stake.

Despite the general recognition that corruption represents a barrier to trade and
source of risk and uncertainty to international investment. The first problem of corruption is
about the financial transactions. This is what sutton (1997) refers to as a transactional barrier,
transactional barriers pay a harmful role in the international market, imposing additional
costs on market actors and discouring transactions from occuring. By forcing producers and
consumers to pay higher costs in order to engage in the transaction, corruption functions as a
transactional barrier. As such, corruption impoes additional costs on market actors with the
effect of deterring market exchanges from ever taking place. Thus, in a very basic sense,
corruption constitutes a source of uncertainty to investors as it imposes not only an additional
cost on financial transaction, but also one that is variables and indeterminate in nature.

The facts that corruption tends to shift governments spending away from the social
areas towards the construction of unneeded projects or lower quality investments
infrastructure. In most corrupted countries, corrupt politicians tend to choose investment
projects not on the bases of their intrinsic econimic worth, but on the opportunity for bribes
and kickbacks these projects presents. Vito Tanzi (1995) for property addressing corruption in
public spending make a distiction between political or high level and administrative or
bureaucratic corruption. Political corruption takes place to decisions of budget to damaging
effects on the allocation of resources because it tends to divert resources away from the
function to which they would have been allocated in the absence of corruption. High
corruption also tend to be associated with poor quality of infrastructure, this can reduce its
function. Because most current spending by government reflects entitlrments or previous
commitments such as pensions, interest payments on public debt, salaries and subsidies
politicians have, in short run limited discretion to influence it. There are nothing routine
about the capital investments and its composition.

As we know corruption can lead to tax evasion and poor tax administration. In many
cases tax collection is much lower than estimated tax bases. Tax eevasion takes plaes when
taxpayers manipulate their account or their declarations to reduce their tax payments.
However some tax evasion exist because of corruption. In malaysia Goverment service taxes
(GST) about 6% there are cases that the sellers increase the prices higher than the original
prices to make a profit. This can affect on human capital formation, which is the most
important input in the proces of production and transformation that is called economic
development. Therefore, for given tax system, he higher the level of corruption, the lower the
revenue and the lower the resources available for funding public provision of certain service,
including education. According to quantitative analysis made by mauro polo (1997)
government expenditure on education is negatively and significantly associated with higher
levels of corruption. Corruption also likely decrease the effectiveness of aid flows, whivh
could have negative effects on the development.

There more important problems about the corruption may threaten the democratic
development. People may existing poor social-ecomic conditions and widespread corruption
link with the proces of democratization. Which in turn creates seriuos obstacles for further
democratization. Thus as we have seen high ang rising corruption by effecting on the
effectivenes of social spending, earoding the tax and custom administrations and destroyong
the legitimacy of existing political system may effect very negatively on the political and
economic development.

Problem on whistleblowing

Whistleblowing, general means speaking aout in a wasteful and illegal act to the public.
Martin (1999) defined a typical whistleblower is an employee in a government department or
private corporation who make a formal complaint about misdeeds of the employer. In
summary, the whistleblower can be seen as an employee exposing the wrongdoing of his or
her employer. However, there are still a lot of problems that addressing.

The whisleblowers are often prone to be attacked. The power of the organization is turned
against there physically and psychologically, includes tension between by colleagues,
spreading the rumours, formal and demotion. They cannot gain trust from others because
whistleblowers are hard working and conscientious employees. They only trust for someone
who can provide justice. For example is when they obtain a new job in another company, they
usually get disunissed after their new employers found out their whistleblowing. So they can
lost everthing what they have now.

In addition, there also some problems for organizations caused by whistleblowing. It can be
seen both internally and externally. The internal problems include bed treatment of staff,
favouritism, male domination, being required to lie, sexism and so on. These problem will
effect the community of organizations in many ways, such as decline in effiency. They can
consme much energy of organizations. The external problems is the relationship between yhe
organizations and the customers. Unethical action whistkeblowers report toward
organizations, it must influence the relationship of the organizations and its stakeholders, who
are the individuals, group and institutions directly affected by an organizations performance.

However, whistleblowing is not a valid method to control unethical behaviour and to

establish a level ofsicial responsibilyt, which means that whistleblowing is not so useful as
some people because there are some problems in the formal channel.
Problem of unethical advertisement in business

Unethical advertising is when you promise something that you can deliver. Using advertising
in a way that is misleading and uses false claims to get the public to buy the product they are
to sell is unethical, because of its misuse of the information that is presented to the public.
Lying about the product, gives false information and makes they believe that something is
true when it is not, unethical advertising is not only unacceptable, but also unfair for the
customer.

In marketing practises, advertisement means to create a need of the product in the minds to
influence customer he really need this product. The involvement of sex, romance in
advertising is much dangerous for society but now the advertising filled unethical behaviour
and morally can see at any social media. The majority of viewed of these show business
consists of housewives and underage girls, they are secretly being advised for the promotion
of products, islam not allowed stealing, lying, committing adultery, gambling, eating pork or
drinking alcohol. Social and cultural are effects by that products advertising, but they are
central to the the interest of those who are fearful that advertising has too much influence on
our view of world. Western society looked different because their a part of their cultural but
in islam is not allowed. The companies must separately with westren advertising in muslim
country because has a negative impact on the society of muslim and the tier norms and
values.