Common forms of corruption

Corruption is a group of behaviours that share one core feature: the misuse of entrusted power for private gain.

Recognising how corruption appears in day-to-day work is essential, as some forms are obvious, while others are subtle, and many escalate over time. These forms of corruption are not separate. In practice, corruption often involves multiple, overlapping behaviours. For public sector employees, this has a practical implication: when you notice one warning sign, consider whether related risks may also be present. 

Abuse of power and influence peddling

This occurs when someone uses their position, authority or access to decision makers to obtain an improper advantage for themselves or others. It can arise wherever discretionary power exists, not only among senior leaders. 

Improper benefits

This form of corruption involves offering, seeking or accepting something of value to influence a decision, action or inaction. Benefits can be financial or non-financial and may be provided before as an incentive or afterwards as a reward. In all cases, they undermine fair and impartial decision making.

Exploited or undisclosed conflicts of interest

A conflict of interest arises when a person's private interests overlap with their public duties in a way that could affect, or be perceived to affect, their judgement. Not all conflicts result in corruption. Conflicts of interest become a corruption risk when they are not declared or appropriately managed, allowing private interest to influence, or appear to influence, official duties. 

Misuse of resources

This form of corruption involves the theft, diversion or improper use of public assets, funds or organisational processes for private benefit. It can begin with minor boundary-pushing behaviours that become normalised and escalate over time.

Fraud and deception 

Fraud involves a deliberate deception to obtain something a person is not entitled to, such as using false documents, manipulated records or making misleading statements. Acts of fraud perpetrated with the intention of abusing power for personal gain may also be corrupt.

Misuse of information

Public sector roles often involve access to sensitive or non-public information, which creates opportunities for corruption if that information is wrongfully disclosed or misused. This behaviour can be difficult to detect and highly damaging. 

Collusion and market manipulation

Collusion occurs when people or organisations secretly coordinate to fix outcomes or avoid competition. In procurement, it undermines competitive tendering and inflates costs to government. In regulatory and political settings, it can distort markets and democratic processes. 

Concealment of proceeds of crime

Concealing the proceeds of crime involves hiding or disguising money or benefits gained from wrongdoing to make them appear legitimate. This hides the original misconduct, protects corrupt actors and reduces the risk of detection. These behaviours follow various forms of corruption but also act as powerful enablers of ongoing misconduct. 

Affiliation and patronage practices

These practices sustain corruption over time through networks of reciprocal benefit, informal obligations and loyalty, resulting in outcomes that are influenced by personal relationships over merit, fairness or public interest. Rather than involving a single improper exchange, these practices create sustained advantages and enduring influence that erode impartial decision making.

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Corruption prevention guide: Managing corruption risk in the New Zealand public sector

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