Does stakeholder engagement affect corruption risk management?
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Does stakeholder engagement affect corruption risk management? Fabio Monteduro1 · Ilenia Cecchetti1 · Ylenia Lai1 · Veronica Allegrini1
© The Author(s) 2020
Abstract Major international organizations such as the Organization for Economic Cooperation and Development (OECD), the United Nations (UN), and the European Union (EU) have stressed the importance of risk management as a useful mechanism to prevent corruption. Anticorruption laws or regulations have been developed around the world, both at regional and national level. These aim to support the design and implementation of proactive management of corruption risks in the public sector. This article aimed to investigate the relationship between stakeholder engagement and the extent of implementation of corruption risk management systems by public organizations. We analysed the anticorruption plans of 343 Italian administrations to explore how different categories of stakeholders (i.e. employees, governing bodies, users/citizens associations) can contribute to the corruption risk management process. We found that the involvement of external and internal stakeholders can positively affect the extent of implementation of corruption risk management systems by public organizations. We explained our results by referring to both traditional organizational theories (institutional theory and the resource-based view) and public governance theories (collaborative and inclusive governance). Institutional pressures, knowledge and values emerged as keys to understanding the results. Keywords Stakeholder engagement · Corruption prevention · Risk management · Public sector
* Fabio Monteduro [email protected] Ilenia Cecchetti [email protected] Ylenia Lai [email protected] Veronica Allegrini [email protected] 1
Department of Management and Law, University of Rome Tor Vergata, Rome, Italy
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1 Introduction The prevention of corruption is a significant challenge for the public sector. Its ability to ensure sustainability at micro and macro levels and to be resilient to corruption can be heavily affected by the level at which corruption risks are preventively managed (Bogodistov and Wohlgemuth 2017; Del Monte and Papagni 2001; Forson et al. 2016; Green 2015; Kapstein 1998; Mauro 1995; Rose-Ackerman and Palifka 2016; Smith and Fischbacher 2009; Tunley et al. 2018). Major international organizations such as the Organization for Economic Cooperation and Development (OECD), the United Nations (UN), the European Union (EU), and the Group of States against Corruption (GRECO), as well as policymakers around the world, have stressed the importance of risk management as a useful mechanism to prevent corruption. Practical implementation of risk management has been supported by a series of standards or guidelines. For general operational risks, the two best-known and most widespread standards are ISO 310001 and the Enterprise Risk Management (ERM) system proposed by the Committee of Sponsoring Organ
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