ABSTRACT. Corruption presents an assurance problem
to businesses: all businesses are best off if none act corruptly
but in the event that corruption occurs are better
off if they act corruptly than if they do not, and because
there is no assurance that other actors are not cheating a
business does not know how to act. The usual solution to
an assurance problem – criminal sanctions imposed on
cheaters – does not work in a corrupt system. Integrative
Social Contract Theory suggests a solution to the assurance
problem. Application of Integrative Social Contract
Theory to corruption demonstrates that in the case of
corruption it has advantages over international law, and
that the theory’s elegance lies in its recognition of norms
generated by multiple communities.