TY - CHAP

T1 - Corruption in the Retail Industry

AU - Aßländer, Michael

AU - Сторчевой, Максим Анатольевич

N1 - Aßländer, M. Corruption in the Retail Industry / M. Aßländer, M. A. Storchevoy // The Handbook of Business and Corruption: Cross-Sectoral Experiences. - Bingley : Emerald Group Publishing Limited, 2017. - P. 481-505.

PY - 2017

Y1 - 2017

N2 - 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.

AB - 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.

KW - slotting fees

KW - retail sector

KW - Bribery

KW - corruption

KW - price competition

M3 - Chapter

SN - 978-1-78635-446-4

SP - 481

EP - 505

BT - The Handbook of Business and Corruption: Cross-Sectoral Experiences

A2 - Aßländer, Michael S.

A2 - Hudson, Sarah

PB - Emerald Group Publishing Ltd.

ER -