Despite the drastic consequences, corruption and anticorruption compliance risks associated with the activities of international non-governmental organizations (NGOs) have not received adequate attention. NGOs face many of the same risks as traditional business organizations, like violating the Foreign Corrupt Practices Act and other foreign bribery laws, as well as susceptibility to becoming a victim of corruption. An anonymous survey of international NGOs conducted by the authors demonstrates that, for various reasons, NGOs have tended to languish behind business organizations in addressing their corruption-related risks. Unlike a business, the basis for an NGO’s funding often limits what resources can be devoted to compliance. Yet, unlike a business, an NGO’s reputational risk is much greater. For this reason, NGOs must give greater attention to putting in place robust anticorruption compliance programs like those instituted by business organizations. [ABSTRACT FROM AUTHOR]
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