Corruption is a very real threat. It wastes scarce taxpayer dollars and diverts investment in our communities. It erodes our trust in the public sector to act efficiently and in our best interests. It distorts incentives and ultimately undermines social welfare programs, economic growth, and social equality. In fact, studies indicate that corruption materially lowers productivity, increases prices, decreases net capital inflows, and reduces foreign direct investment.
And the United States has never ranked worse.
Transparency International, a global coalition promoting transparency, accountability, and integrity, recently released the 2025 results of its annual Corruptions Perception Index (“CPI”) that “ranks 182 countries and territories worldwide by their perceived levels of public sector corruption”, according to experts. Our 2025 position of 29th is the worst ranking the country has ever scored.
While the United States always ranks in the top 20% of all countries worldwide, it is notable that we are not included in the top 10%.
Why do my corporate clients care about this?
- Impact on Sales: “It takes 20 years to build a reputation and five minutes to ruin it.” (Warren Buffett) Corruption convictions can jail executives and destroy a business. Even the initiation of an investigation can destroy a reputation and lead to lawsuits and loss of market share.
- Bureaucratic Burden: Companies often use the CPI as an objective risk measurement device to risk-rate counterparties. Due to risk rating formulae, US-based companies may now face increased scrutiny, e.g., relatively more rigorous due diligence and KYC procedures, that could create delay and frustrate efficiencies.
- Investment Targets: Countries with lower perceived corruption generally attract more foreign direct investment. Economic stability, predictability of costs, the rule of law, and transparent competition are positively correlated with a country’s long-term economic growth. The inverse could mean the loss of business opportunities.
All this said…the CPI is merely a poll of generalized country perceptions. Fighting bribery and corruption starts within your business. We can help with both (a) managing corruption with counterparties and (b) improving your counterparties’ perceptions of YOU. Contact us today!
