Corporate Kleptocracy – Definition

Cite this article as:"Corporate Kleptocracy – Definition," in The Business Professor, updated January 24, 2020, last accessed October 22, 2020, https://thebusinessprofessor.com/lesson/corporate-kleptocracy-definition/.

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Corporate Kleptocracy Definition

Corporate kleptocracy refers to a situation in a corporation, state or government whereby those who are at the helm of affairs exploit national resources for personal use. Corporate kleptocracy is a term that describes the greed of company executives, public office holders and civil servants who steal wealth at the detriment of other stakeholders.

Corporate kleptocracy was first used in the early 2000s, this was when the then CEO of Hollinger and his executives were accused of siphoning millions of dollars meant for the general use of the company. Kleptocrat is a term that describes thieves or corrupt (greedy) leaders.

A Little More on What is a Corporate Kleptocracy

In a corporate kleptocracy, corrupt officials and leaders use their office to siphon wealth meant for the general use of the company. When people in government steal national resources to satisfy personal greed, it is an instance of corporate Kleptocracy. In this context, corporate executives use underhanded tactics to steal money or skim off wealth at the detriment of other stakeholders.

Corporate kleptocracy emerged during the case involving Hollinger International, a company where its CEO and other executives used their positions to exploit and siphon money from the company. Corporate kleptocracy also describes a situation in governance in which individuals seek positions in order to steal national resources at the expense of the masses.

Reference for “Corporate Kleptocracy”

https://www.investopedia.com/terms/c/corporatekleptocracy.asp

www.businessdictionary.com/definition/corporate-kleptocracy.html

https://www.nytimes.com/2004/09/02/opinion/corporate-kleptocracy.html

https://financial-dictionary.thefreedictionary.com/Corporate+Kleptocracy

https://www.shmoop.com/finance-glossary/corporate-kleptocracy.html

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