What is corruption in the context of fraud?

Corruption, in the context of fraud, is defined as the abuse of entrusted power for private gain, often involving bribery. This definition encompasses various unethical practices where individuals in positions of authority exploit their power to achieve personal benefits, typically at the expense of their responsibilities and the organization's integrity.

Bribery is a common characteristic of corruption, where an individual or group may offer or accept something of value to influence the actions of others, particularly those in power. This practice undermines fair competition, hinders transparency, and can have significant negative consequences on businesses and society as a whole.

The other options do not align with the definition of corruption. The equitable distribution of company profits suggests fairness and transparency rather than abuse of power. Compliance with all financial regulations indicates adherence to lawful conduct, which is contrary to corrupt practices. Sharing financial gains with stakeholders reflects a legitimate and ethical business model rather than the illicit actions associated with corruption. Thus, the focus on misuse of power for personal benefit is what accurately captures the essence of corruption.