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1. DEFINITION Defined simply, corruption is the misuse of entrusted power for private benefit. Yet it is not so long ago that the word itself was completely taboo in professional and political environments. The word seldom appeared in newspapers and economists rarely mentioned it, although political scientists had begun to take an academic interest in it. Normative statements about corruption require a point of view, a standard of "goodness" and a model of how corruption works in particular instances. While corruption is defined as "the misuse of entrusted power for private benefit", it can also be described as representing non-compliance with the "arm's-length" principle, under which no personal or family relationship should play any role in economic decision-making, be it by private economic agents or by government officials. Once the arm's-length principle has been breached and a distinction made based on relationships, corruption will often follow. Conflict of interest situations and nepotism are examples. The arm's-length principle is seen as fundamental to the efficient functioning of any organisation.

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Obstacles to Open and Honest Government: An Overview of Corruption: Corruption as a Problem (Ethical, Moral, Economic and Political) Affecting the Whole Society