PREVENTION OF CORRUPTION IN THE PRIVATE SECTOR THROUGH THE FORMATION OF COMPLIANCE SYSTEMS

Abstract

Historical experience shows that corruption cannot be completely eliminated. An acceptableмsituation is one in which this threat has a limited impact on the socio-economic processes of a country. In Ukraine, a certain degree of progress in anti-corruption activities can be observed. The driving impulse is formed by pressure from partner countries and growing public dissatisfaction. This progress has been implemented in the form of establishing specialized anti-corruption bodies. The experience of other countries, in particular those where the “Scandinavian” model of anticorruption activity has been formed, demonstrates that positive results are ensured primarily through bottom-up initiatives, that is, based on zero tolerance on the part of citizens. The consolidation of public initiatives is facilitated by compliance as a component of the management system of business entities. Within the security hierarchy (individual – enterprise – industry and region – state), compliance ensures the prevention of corruption in the private sector, thereby improving the  effectiveness of anti-corruption activities and reducing the impact of corruption on the economic security of the state.

The purpose of the article is to outline the modern perception of compliance, followed by substantiating the author’s position regarding the main components of such a system, based on the priority of combating corruption in the private sector. To form the theoretical foundations for creating compliance systems, the following methods were used: induction and deduction, comparison and systematization — in studying the essential characteristics of the term “compliance”; synthesis and analysis — for a critical review of existing approaches to compliance classification; morphological analysis — to clarify the components of compliance systems; abstract-logical method — for theoretical generalizations and research conclusions. The expediency of perceiving compliance as a system is substantiated, within which there is a combination of goals, objectives, principles, functions, and methods that determine the course of internal processes in accordance with legally established norms and internal corporate regulations, with a focus on reducing compliance risks and ensuring effective anti-corruption activities. The content of the basic components is detailed with clarification of parameters related to the prevention of corruption in the private sector