Corruption in the Retail Industry

Michael Aßländer, Максим Анатольевич Сторчевой

Research outputpeer-review

Abstract

As other worldwide sourcing industries the retail sector is also prone to various forms of corruption. In particular large retail chains doing business in developing countries are often faced with corrupt bureaucracy and struggle with dubious administrative processes. On the other hand the purchasing divisions of large retailers decide upon million dollar deals with their suppliers which may tempt manufacturers to pay bribes for winning the deal. While such forms of corruption may be found also for other businesses there are other practices which may be recognized as corruption which are typical in the retail sector. One of the most controversial discussions concerns the practice of so-called slotting fees which are charged to manufacturers as a contribution to the handling costs of the retailer. Since such fees are negotiated in secrecy and not broken down by categories of expenditure they are often seen as a bribery-like payment demanded for getting contracts or staying in business. In the following chapter we will analyze these practices from an economic perspective. We will provide some empirical findings on how such payments are assessed in practice and conclude with some ethical considerations concerning the practice and the effects of slotting fees.
Original languageEnglish
Title of host publicationThe Handbook of Business and Corruption: Cross-Sectoral Experiences
EditorsMichael S. Aßländer, Sarah Hudson
PublisherEmerald Group Publishing Ltd.
Pages481-505
Number of pages25
ISBN (Electronic)978-1-78635-445-7
ISBN (Print)978-1-78635-446-4
Publication statusPublished - 2017

Fingerprint

Corruption
Fees
Retail industry
Retail sector
Payment
Retailers
Costs
Secrecy
Sourcing
Economics
Retail chain
Bribes
Bribery
Industry
Developing countries
Purchasing
Suppliers
Bureaucracy
Expenditure

Cite this

Aßländer, M., & Сторчевой, М. А. (2017). Corruption in the Retail Industry. In M. S. Aßländer, & S. Hudson (Eds.), The Handbook of Business and Corruption: Cross-Sectoral Experiences (pp. 481-505). Emerald Group Publishing Ltd..
Aßländer, Michael ; Сторчевой, Максим Анатольевич. / Corruption in the Retail Industry. The Handbook of Business and Corruption: Cross-Sectoral Experiences. editor / Michael S. Aßländer ; Sarah Hudson. Emerald Group Publishing Ltd., 2017. pp. 481-505
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Aßländer, M & Сторчевой, МА 2017, Corruption in the Retail Industry. in MS Aßländer & S Hudson (eds), The Handbook of Business and Corruption: Cross-Sectoral Experiences. Emerald Group Publishing Ltd., pp. 481-505.

Corruption in the Retail Industry. / Aßländer, Michael; Сторчевой, Максим Анатольевич.

The Handbook of Business and Corruption: Cross-Sectoral Experiences. ed. / Michael S. Aßländer; Sarah Hudson. Emerald Group Publishing Ltd., 2017. p. 481-505.

Research outputpeer-review

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Aßländer M, Сторчевой МА. Corruption in the Retail Industry. In Aßländer MS, Hudson S, editors, The Handbook of Business and Corruption: Cross-Sectoral Experiences. Emerald Group Publishing Ltd. 2017. p. 481-505