NATIONAL AND INTERNATIONAL CORRUPTION: IN THE PERSPECTIVE OF ITALIAN COMPANIES: THE CASE OF CHINA

Abstract

Abstract: Corruption not only affects moral values, but also the social and economic development of states. Consequently, the problem of corruption has become a very important issue for several international institutions, both governmental and non-governmental. Over the past fifteen years, corruption has been transformed from a mainly national problem into an international issue that is eliciting a global political response. International institutions have represented the major driving force in encouraging collaboration among States trying not only to mediate and define international relationships but also to create a common useful framework to be adopted by each State against corruption. This paper attempts to offer a comprehensive review and assessment of the phenomenon known as from its origins to contemporary times passing through the Italian, the international and Chinese framework. Additionally, the actual rules and regulations, as well as the challenges that the international community needs to address in the context of preventing and combating corruption will be analysed. As a result, the following paper is organized as follows. Chapter I explores the evolutionary process of the phenomenon from the very first stages to its necessary internationalization for conducting business internationally. Also, it underlines the concept of corruption in the private sector, showing various international legal instruments against corruption such as the CoE (Council of Europe) Criminal Law Convention and UNCAC (United Nations Convention against Corruption). Chapter II examines the Italian framework for the repression of corruption placing emphasis on employees’ behavioural regulation and on the changes and innovation introduced by Anti-Corruption Law (No. 190/2012). The chapter continues by providing a brief outlook on administrative transparency, with special emphasis on the disparity between the Italian discipline on transparency and the FOIA form. Chapter III analyses the international regulation in combating corruption together with its monitoring mechanisms, such as the self-assessment procedure by State Parties, the so- called peer-review, experts’ revisions and territorial investigations. Furthermore, it focuses on the U.S Foreign Corrupt Practices Act (FCPA) which represents the most enforced anti-corruption law. Chapter IV moves from an international context to the regulatory climate in China. Therefore, it focuses on the development of the Chinese legal system, especially emphasizing the two main sources of anti-bribery and anti-corruption legislation in China: The PRC Criminal Law (中华人民共和国刑法) and the PRC Anti-unfair competition law (中华人民共和国反不正当竞争法). Also, it analyses the pharmaceutical industry since it has represented a great area of interest for the pursuit of commercial bribery cases. Lastly, Chapter V takes into account which behaviour companies and in particular Italian companies, need to adopt in doing business with China. In particular, the chapter aims to underline how the business system is always exposed to certain risks. It is further argued what best practices must be followed for the implementation of an effective compliance programme. Moreover, it exposes not only which factors may be considered for a complete understanding of the Chinese society in order to foster healthy business relationships, but also the legal and social risks associated with such an effort.

Key words: Corruption, Italian discipline, International regulation, China, FCPA, Best practices.