Organization and Management of the Processes in the Democratic State for Dealing with Corruption as a Socio-Political Challenge

Table of Contents

INTRODUCTION

CHAPTER I. CORRUPTION AND COMPLIANCE

1.1. Corruption in German companies

1.1.1. Definition: Corruption

1.1.2. Legal situation in Germany

1.1.3. The contractual relationship

1.1.4. Forms of corruption

1.1.5. Facts and figures

1.1.5.1. Federal Situation Report Corruption

1.1.5.2. Target areas of corruption

1.1.5.3. Suspects - distribution of donors and takers

1.1.6. The corruption dilemma

1.1.7. Damage due to corruption

1.1.7.1. Distortion of competition

1.1.7.2. Damage to third parties and the perpetrator himself

1.1.7.3. National economy, state and society as injured parties

1.1.8. Corruption paradox

1.1.9. Corruption in the middle class

1.2. Compliance in Germany

1.2.1. Definition and purpose of compliance

1.2.2. Medium-sized companies in Germany

1.2.3. Legal obligation to comply in Germany

1.2.3.1. Internationalization of the SME sector

1.2.3.2. Fraud

1.2.3.3. Competition offenses

1.2.3.4. Product liability

1.2.3.5. Export regulations

1.2.3.6. Capital Market Law

1.2.4. Objections to compliance

1.2.5. Compliance in medium-sized businesses

1.3. Corruption prevention - Compliance

1.3.1. Emergence of corruption and prevention through compliance

1.3.1.1. The Fraud Triangle

1.3.1.2. Compliance in three stages

1.3.2. Corruption detection

1.3.3. Dealing with indications and acting on suspicions of corruption

1.3.3.1. Whistleblowing

1.3.3.2. Compliance Officer

1.3.3.3. Ombudsmen

1.3.3.4. Summary hint systems

1.3.4. Code of Conduct

1.3.5. Dual control principle and separation of functions

1.3.6. Staff rotation

1.3.7. Minimum requirements of a compliance organization

1.3.8. Monitoring compliance programs

1.3.8.1. State control

1.3.8.2. Control mechanisms

1.4. Compliance - Implementation in medium-sized businesses

1.4.1. Strategy

1.4.2. Implementation in the organization and processes

1.4.2.1. Compliance with commercial principles and transparency

1.4.2.2. Guidelines

1.4.2.3. Responsibilities

1.4.2.4. Employee training

1.4.2.5. Compliance management - risks and processes

1.4.3. Recommendation of measures in the SME sector

1.5. Compliance - Implementation in the administration

1.5.1. Strategy

1.5.2. Compliance issues for management

1.5.2.1. Reasons for compliance in public administration

1.5.2.2. Legislative measures

1.5.2.3. Compliance requirements in terms of constitutional and administrative law

1.5.2.4. Compliance guidelines

1.5.2.5. Institutionalization

1.5.3. Public Corporate Governance

1.5.4. Areas particularly susceptible to corruption

1.5.4.1. Public procurement

1.5.4.2. Construction

1.5.4.3. Financial Management

1.5.4.4. Permits and control activities

1.5.5. Measures

1.5.5.1. Four-eyes principle

1.5.5.2. Personnel selection and rotation

1.5.5.3. Anti-Corruption Officer

1.5.5.4. Ombudsmen

1.5.5.5. Whistleblowing

1.5.5.6. Internal Audit

1.5.5.7. Ethics in administration and code of ethics

1.5.5.8. Code of Conduct

1.5.5.9. Compliance with data protection and data security

1.5.5.10. Freedom of Information

CHAPTER II. NON-COMPLIANCE AND BUSINESS RISKS

2.1. Non-Compliance: Business Risks / § 130 OWiG Consideration

2.1.1.Concept and consequences of non-compliance

2.1.2. Effects of Business Risks

2.1.2.1. Criminal law aspects

2.1.2.2. Aspects of administrative offence law

2.1.2.3. Other disadvantages under various legal aspects

2.1.2.4. Reputation

2.1.3. Violation of the duty of supervision according to § 130 OWiG

2.1.3.1. Ratio of the standard

2.1.3.2. Requirements

2.1.3.3. Burden of proof

2.1.4. Criminal law requirements for in-house risk management

2.1.5. Reducing the risk of criminal liability through compliance measures

2.1.5.1. Exculpation possibility

2.1.5.2. Privacy

CHAPTER III. EMPIRICAL SURVEY

3.1. Practical projects of the university's business informatics focus area

3.1.1. Methods of the survey

3.1.2. Project organization of the university

3.2. Comparative analysis of compliance systems applied in practice as Anti corruption strategies

3.2.1. Compliance concept in the administration of the city of Würzburg

3.2.1.1. Presentation of the project

3.2.1.2. Project goal

3.2.1.3. Project organization

3.2.1.4. Results of the project groups

3.2.2. Compliance concept of the Würzburg District Office administration

3.2.2.1. Presentation of the project

3.2.2.2. Project goal

3.2.2.3. Project organization

3.2.2.4. Results of the project groups

3.2.3. Compliance concept at Versorgungs- und Verkehrs GmbH

3.2.3.1. Concept and areas of application of a public-private partnership

3.2.3.2. Presentation of the project with a public-private partnership

3.2.3.3. Project goal

3.2.3.4. Project organization

3.2.3.5. Results of the project groups

3.2.4. Compliance concept at s.Oliver GmbH & Co.KG

3.2.4.1. Presentation of the project

3.2.4.2. Project goal and project organization

3.2.4.3. Results of the project groups

3.2.5. Compliance concept at NORAS MRI products GmbH

3.2.5.1. Presentation of the project

3.2.5.2. Project goal

3.2.5.3. Project organization

3.2.5.4. Results of the project groups

3.2.6. Compliance concept Stadtbau Würzburg GmbH

3.2.6.1. Project goal and project organization

3.2.6.2. Results of the project group

3.2.7. Compliance concept Stadtbau Aschaffenburg GmbH

3.2.7.1. Project goal and project organization

3.2.7.2. Results of the project group

3.2.8. Compliance Concept s.Oliver Bernd Freier GmbH & Co. KG

3.2.8.1. Project goal and project organization

3.2.8.2. Results of the project group

3.2.9. Compliance concept Beck Electrical Engineering

3.2.9.1. Project goal and project organization

3.2.9.2. Results of the project group

3.2.10. Compliance concept of SWG Schweinfurt

3.2.10.1. Presentation of the project

3.2.10.2. Project goal

3.2.10.3. Results of the project groups

3.2.11. Compliance concept of Sparkasse Mainfranken

3.2.11.1. Presentation of the project

3.2.11.2. Project goal

3.2.11.3. Results of the project groups

3.2.12. Compliance Concept of the Fürstlich Castell`sche Bank Würzburg

3.2.12.1. Presentation of the project

3.2.12.2. Project goal

3.2.12.3. Results of the project groups

3.2.13. Compliance Concept of Bendel & Partner and Bendel & Partner Insolvenz AG

3.2.13.1. Presentation of the project

3.2.13.2. Project goal

3.2.13.3. Results of the project groups

3.3. Survey of the actual situation after the practical project

3.3.1. Presentation of the interview questions

3.3.2. Interviews with employees from authorities and companies

3.3.2.1. Interviews at the administration of the city of Würzburg

3.3.2.2. Interviews at the administration of the Würzburg district office

3.3.2.3. Interviews with Würzburger Versorgungs- und Verkehrs GmbH

3.3.2.4. Interviews with s.Oliver Bernd Freier GmbH & Co. KG

3.3.2.5. Interviews with NORAS MRI products GmbH

3.3.2.6. Interviews Stadtbau Würzburg GmbH

3.3.2.7. Interviews Stadtbau Aschaffenburg GmbH

3.3.2.8. Interview s.Oliver Bernd Freier GmbH & Co. KG

3.3.2.9. Interviews Beck Electrical Engineering

3.3.2.10. Interview with SWG Schweinfurt

3.3.2.11. Interview with Sparkasse Mainfranken

3.3.2.12. Interview with the Fürstlich Castell`sche Bank Würzburg

3.3.2.13. Interview with Bendel & Partner Attorneys at Law and Bendel & Partner Insolvenz AG

3.4. Implementation of compliance guidelines in companies and administrations

3.4.1. Results of the interviews with authorities and companies

3.4.1.1. City of Würzburg

4.4.1.2. Würzburg District Office

3.4.1.3. Würzburger Versorgungs- und Verkehrs GmbH

3.4.1.4. s.Oliver Bernd Freier GmbH & Co. KG

3.4.1.5. NORAS MRI products GmbH

3.4.1.6. Stadtbau Würzburg GmbH

3.4.1.7. Stadtbau Aschaffenburg GmbH

3.4.1.8. s.Oliver Bernd Freier GmbH & Co. KG

3.4.1.9. Beck Electrical Engineering

3.4.1.10. SWG Schweinfurt

3.4.1.11. Sparkasse Mainfranken

3.4.1.12. Fürstlich Castell‘sche Bank Würzburg

3.4.1.13. Bendel & Partner and Bendel & Partner Insolvenz AG

3.5. Results from the Empiric Research

3.5.1. Comparison of the results in the administrations according to the interviews

3.5.2. Comparison of the results in the companies according to the interviews

Objectives and Topics

This dissertation aims to explore the sociological and criminological foundations of corruption and the instrumental role of compliance in both the private sector and public administration. It investigates how organizational management processes can be structured to prevent corruption as a socio-political challenge, particularly in small and medium-sized enterprises (SMEs) and municipal administrations.

• Sociological and criminological analysis of corruption and white-collar crime.
• Evaluation of compliance as a strategic instrument for preventing non-compliant behavior.
• Comparative analysis of compliance system implementations across various public and private organizations.
• Challenges of implementing standardized compliance programs in resource-limited medium-sized businesses.
• Empirical assessment of organizational effectiveness in corruption prevention and the role of stakeholders.

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Summary of Chapters

INTRODUCTION: Provides a historical and conceptual overview of corruption, highlighting significant political scandals and the evolution of corruption from a "transitional" phenomenon to a structural challenge.

CHAPTER I. CORRUPTION AND COMPLIANCE: Explores the scientific definitions of corruption and the implementation of compliance strategies, focusing on both medium-sized businesses and public administration settings.

CHAPTER II. NON-COMPLIANCE AND BUSINESS RISKS: Examines the legal consequences of non-compliance, specifically addressing the supervisory duties under Section 130 of the German Code of Administrative Offences (OWiG) and associated liability risks.

CHAPTER III. EMPIRICAL SURVEY: Presents a comparative analysis of compliance systems implemented in various universities, city administrations, and private companies through guided expert interviews.

Keywords

corruption, corruption prevention, compliance, non-compliance, white-collar crime, principal-agent theory, public administration, SMEs, transparency, accountability, fraud triangle, Germany, audit, integrity, business ethics

Frequently Asked Questions

What is the core focus of this dissertation?

The research focuses on the organization and management of processes within a democratic state to combat corruption, viewing it as a significant socio-political and economic challenge.

What are the central themes of the work?

The core themes include corruption prevention, compliance management, the role of internal controls, and the empirical application of compliance measures in both private firms and government administration.

What is the primary research goal?

The goal is to determine how compliance structures can effectively be used as preventive measures against corruption in medium-sized enterprises and public authorities.

Which scientific methodology is applied?

The work employs a mixed-method approach, combining theoretical socio-criminological analysis with an empirical survey consisting of guided interviews with experts from various organizations.

What topics are covered in the main section?

The main sections cover the legal definitions of corruption, risk assessment, the development of compliance guidelines, whistleblower systems, and the specific challenges of implementation in SMEs compared to large corporations.

How are the key findings characterized?

The results highlight a significant divergence between theory and practice, noting that while the willingness for compliance exists, effective and systematic implementation is often hindered by organizational culture and cost considerations.

Why are SMEs highlighted as a special group for study?

SMEs represent the backbone of the economy, yet often struggle with compliance due to limited resources, lack of formalized structures, and a perceived lower risk of corruption compared to multinational corporations.

What specific role does the "Fraud Triangle" play in the study?

The Fraud Triangle serves as a theoretical basis to explain the origin of white-collar crime, identifying opportunity, motivation, and internal justification as the three necessary components for corrupt activities.

How is the concept of "whistleblowing" treated in the research?

Whistleblowing is evaluated as a crucial but sensitive mechanism for detecting corruption, with the study discussing legal challenges in Germany and comparing these with international standards like the U.S. Sarbanes-Oxley Act.