The Philippines has a history of corruption, and virtually every government throughout the country's history has struggled with the problem. Corruption in the Philippines is characterised by a combination of societal factors, institutional factors and an incentives system that contributes to corruption. Many companies identify corruption as the most problematic factor for doing business in the country, and corruption is often encountered when interacting with public officials. Companies should also be aware that illegal donations to political parties and bribery in order to influence policy-making are common types of private sector corruption.

Positive developments in relation to corruption and investment:

• In January 2012, President Aquino approved the Good Governance and Anti-Corruption Cluster (GGAC) plan for 2012-2016, which includes measures aiming to promote transparency and accountability in government operations.
• In 2012, the Senate approved the third and final reading of the Freedom of Information Bill. In addition, the same year also saw the passage of the Act to Further Strengthen the Anti-Money Laundering Law and the Terrorism Financing Prevention and Suppression Act of 2012.
• In May 2011, the House of Representatives committee on justice passed the proposed Whistleblowers’ Act, which seeks to protect whistleblowers from all forms of retaliatory actions. 
• In March 2011, President Aquino approved the Philippine Development Plan for 2011-2016. The overarching theme of the Plan is good governance and anti-corruption while achieving inclusive growth, which would create substantial employment opportunities as well as reduce poverty.
• CoST Philippines was established in September 2008 in collaboration with the Construction Sector Transparency Initiative (CoST), which aims at enhancing transparency and accountability in the construction sector, focusing specifically on public disclosure of information. After three-years as a pilot country, CoST Philippines was officially launched to the public in 2010. 

Risks of corruption:

• Corruption is said to take place at all levels of the government, but it is more rampant among high-level civil servants.
• It is reportedly common for civil servants to attempt to supplement their relatively low salaries by extracting bribes, facilitated by the country's complex, sometimes contradictory regulatory regime.
• Companies generally have little confidence in the Philippine judicial system. The main reasons are: the allegedly incompetent court personnel, corruption and long delays of court cases.