Sustainability Language

Governance, Ethics & Risk

Corruption risk

The exposure of an organisation, transaction or jurisdiction to corruption — the abuse of entrusted power for private gain — assessed and managed under anti-corruption frameworks.

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Definition

Corruption risk is the likelihood and potential impact that corrupt conduct — commonly defined as the abuse of entrusted power for private gain — will occur within an organisation's operations, supply chain or markets. It is assessed through risk mapping (geography, sector, transaction type, third parties) and managed through anti-bribery management systems such as ISO 37001, whistleblowing channels and third-party due diligence.

References

Overview

What it means

A governance risk that directly degrades sustainability outcomes — weakening environmental enforcement, distorting resource allocation and eroding trust.

How it is used

ESG ratings, investor screening and due-diligence laws treat corruption as a core governance factor; perception indices (e. g. Transparency International's CPI) and experience-based surveys inform country-level assessment.

Why it matters

Corruption systematically undermines environmental and social regulation; managing corruption risk is a precondition for credible sustainability performance, especially in high-risk jurisdictions.

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