Corruption can take many forms

Corruption is the misuse of authority for personal benefit, and can be committed by private individuals, public officials, politicians and business people. This misuse can be illegal or otherwise unethical.

Corruption is generally associated with bribery, which is when money, a service or another benefit is given to a person or people who can influence decision-makers in the hope of receiving a favour in return, or, conversely, asking for an unlawful benefit in exchange for a favour. Bribery is, however, only one form of corruption.

Corruption is a wide-ranging phenomenon, and actions are categorised as corruption based on whether they meet the criteria for malfeasance, bribery, fraud, embezzlement, money laundering or insider trading. Crimes related to misuse of a position of trust and inappropriate use of business secrets may also demonstrate features of corruption. Identifying and preventing corruption is made difficult in part by the fact that, although corruption has damaging effects, it is difficult to define unambiguously.

Corruption is an international phenomenon. However, the different manifestations of corruption vary from country to country.

Forms of corruption in a nutshell

Conflict of interest is a situation where a person or organisation has multiple interests, financial or otherwise, one of which could potentially corrupt the motivation or decision-making ability of that person or organisation.
Dual role is a situation where a person plays two roles at the same time, for example as both a tenderer and a decision-maker for a contract.
Favouritism means (unlawfully) putting a person, company or other actor before others.
Nepotism means favouring a relative.
Old boy networks are more or less closed circles based on reciprocity and unethical favouritism.
Friendship corruption means mutual (unlawful) assistance between friends and acquaintances.

Corruption exists at all levels of Finnish society

Corruption occurs in the form of unethical giving and accepting of benefits, conflicts related to benefits and favouritism as well as unethical decision-making outside the formal decision-making structures. A common feature of corruption in Finland is that the perpetrator operates in compliance with the law, but unethically, nevertheless.

Finland is at risk of large-scale corruption at the interface between the public and private sectors. The most significant risk areas for corruption are the construction sector, public procurement and competitive bidding, city planning, political decision-making and financing. Other areas susceptible to corruption include international trade and sports.

Corruption is difficult to identify

The forms of corruption have not changed much over the years, but changes in the operating environment have affected the situations in which corruption occurs. Corruption usually takes place away from the public eye, meaning that only a fraction of corruption cases come to the attention of the authorities or citizens.

The incorporation of the public sector has brought significant changes to the way the public purse funds its activities. From an anti-corruption perspective, the risks of incorporation relate in particular to the transparency of decision-making. Reports on financial operations and the grounds for decision-making as required by the Act on the Openness of Government Activities are no longer available to residents of municipalities, municipal council representatives or representatives of the media.

Between the public and private sectors, corruption can, for example, take the form of substantial entertainment expenses for a company, which are regularly targeted at certain officials. Public funds may be used to make excessive procurement of materials, some of which may also end up being used by the official responsible for the procurement or his or her close associates. Corruption can also take the form of favouritism towards family members or acquaintances in recruitment, procurement or other decision-making.

In business, corruption can occur, for example, when a subcontractor pays a company planning a large construction project a so-called “sweetener”. A high level of entertainment expenses for subcontracting companies may also point to improper influence when competing for contracts. Overpayments in foreign trade, for example in raw material purchases or high sales commissions for sales agents, can be a sign of corruption.

The diversity of corruption makes it difficult to detect. Structural and network corruption in particular are difficult to quantify. The KORSI project has been exploring possible ways to measure corruption in Finnish society.

Corruption is usually connected to economic crimes

Authorities usually become aware of corruption in connection with other suspected criminal activity. Suspected cases of bribery that come to the attention of the police seem to be closely related to other economic crimes, particularly the grey economy. Corruption and money-laundering are also closely related to one another.

The risk of corruption and other inappropriate forms of influencing is pronounced in construction and public procurement. Bribing people in charge of decision-making concerning contracts, for example, fosters further criminal activities related to the grey economy by creating an environment conducive to the pursuit of other criminal activities and the activities of organised criminal groups.

Activities in violation of the Competition Act can also embody features of corruption. If an employee of a public procurer playing a dual role is able to influence the content of bidding competitions and the selection criteria, that person has the possibility to place one company in the most-favoured position in procurements, thereby skewing the competition. Such situations can make it difficult for new companies to enter the market. Such phenomena can also be connected to cartels, or unlawful restrictions on competition between companies.

Corruption has a negative impact on well-being and economic growth

Corruption can be compared to a disease that infiltrates the structures of society and destroys its central functions. Corruption has serious consequences for both society and individuals because it slows down economic development, weakens democracy and increases economic inequality and environmental destruction. Corruption makes it more difficult for people to access services and live an equal, good and safe life.

According to a study commissioned by the European Parliament, corruption is estimated to cost the EU economy around EUR 179–990 billion each year, also taking into account its indirect effects.

The European Commission monitors and evaluates EU Member States' anti-corruption efforts in the annual Rule of Law Report. In the latest Rule of Law Report (2024), it is recommended, among other things, that Finland create legislation on trading in influence and review the regulation on the criminalisation of foreign bribery. In May 2023, the EU Commission adopted a proposal for an anti-corruption directive.

European Union citizens' attitudes towards corruption are measured in the annual Eurobarometer.

Corruption can be prevented through increased transparency, awareness and cooperation

In Finland, various ministries and public authorities participate in anti-corruption work on a broad front. In addition, civic participation and journalism play an important role in preventing corruption related to decision-making. An integral part of comprehensive prevention of corruption is clear legislation that gives the authorities sufficient possibilities to address infractions.

Anti-corruption strategy [.ﬁ]›

Anti-corruption cooperation network – mandate 2022 - 2024 [.ﬁ]›

Fighting corruption in local government: Stepping stones to good governance [.ﬁ] (in Finnish)

Anti-corruption guidelines for government agencies and institutions (PDF in Finnish 1,47 Mb)

At a website maintained by the Ministry of Justice, Anti-Corruption.fi, you can find information on the tools for fighting corruption.