Corruption is a major problem in many of the worlds developing economies today. World Bank studies put bribery at over $1 trillion per year accounting for up to 12% of the GDP of nations such as Nigeria, Kenya and Venezuela. Though largely ignored for many years, interest in world wide corruption has been rekindled by recent corporate scandals in the US and Europe. Corruption in the developing nations is said to result from a number of factors. Mass poverty has been cited as a facilitating condition for corruption just as an inability to manage a sudden upsurge in mineral revenues has been credited with breeding corruption and adventurous government procurement among public officials in countries like Nigeria and Venezuela.

Corruption has played a major role in business environment as it believed that higher level of corruption may result to numbers of business failure particularly in a developing country and this might lead to many multinational companies pulling away from such enviroment. Most of the time such corrupt can harm business shareholders interest, managers, as decision makers, in corruption related situations may fail to understand the impact of their decisions in such situation for they operate from a position dependent objectively (Sen, 2002) focusing on economic objective usually. They fail to understand that their involvement in corrupt acts can lead to voilateion of fundamental stakeholder issues such as human rights as in the cases of Shell.

Distinctive forms of corruption and bribery are identified and the political dimensions of ‘corruption’ are duly noted. The prevalence of corruption throughout the world is then indicated, together with the shortcomings of some current institutional responses. Some evidence regarding MNC managers experirnces with corruption and bribery is then set out, together with several evidence based appraoches and techniques for reducing corruption. These include the analysis of consequences by individual decision makers, principle based reasoning at the managerial level and balanced changes at the political level.