Corruption, Negligence, and Mismanagement at the Dutch East India Company
by Marie Jane Jumawan-Matero, Challoner Matero and John Francis Diaz
Abstract
This case study investigates the unethical practices and internal struggles of the world’s first multinational company, the Dutch East India Company (DEIC). These problems contributed to its collapse in 1799 after almost two centuries of existence. The company was unable to cope with the shift in global economic powers, changing consumer preferences, rise of competition, the cost of wars it financed, and the inadequate supervision of its merchants. Moreover, internal corruption in private trading, high dividends to shareholders, and uncontrolled administrative costs compounded the company’s problems.
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