Corruption and Bribery

In: Business and Management

Submitted By jhmrris2
Words 1781
Pages 8
Corruption and Bribery
April 29, 2015

Abstract

In this paper, I will be writing about corruption and bribery. I will define the terms and go on to explain the regulations that have been put in place to stop corruption and bribery. I will then go on to give examples of major corruption and bribery scandals that companies have recently been in and what has been done to punish said companies for their crime.

Intro

Corruption is defined in the Merriam-Webster Dictionary as “dishonest or illegal behavior especially by powerful people (such as government officials or police officers), the act of corrupting someone or something, and something that has been changed from its original form”. (Merriam-Webster) Bribery is defined as “something valuable (such as money) that is given in order to get someone to do something”. (Merriam-Webster). A bribe can be from person to person, company to company, or even country to country and it is considered a crime in most parts of the world. Many would agree that there is a lot of bribery and corruption in modern day politics as well as International companies, but I will not be going into that for it is another huge topic. “Bribery and corruption are major obstacles to socio-economic development and distort national and international economic relations.” (IBE) This corruption is seen as an unfair advantage for companies with a lot of money to throw away to get what they want and is considered very unethical in the eyes of lawmakers. In order to fight against corruption, “…nation states and international bodies have drawn up regulatory frameworks to help fight corrupt practices.” (IBE)

International Frameworks and Regulations

The first framework that was made to combat bribery and corruption is the OECD anti-bribery Convention. “The OECD Anti-Bribery Convention establishes legally binding standards…...

Similar Documents

Bribery

...In this paper one will explaining what bribery is, the laws on bribery, who can be involved in bribery and what are the punishment for committing bribery.   Bribery can take place anywhere. It can also affect many people. It can take place in the court rooms of the United States to the sports that one watches every day. There are many laws against bribery to help stop this from happing, and if committed it is have very serious punishments depending on how the bribery took place. Bribery makes it difficult for decisions to be made honestly and fairly. One thing could be said for sure bribery is very much against the law. Bribery as described by the law is when someone improperly gives, accepts, offers or receives something of value for the purpose of influencing the action, views, decisions or public duties of an official, juror, or someone in a position of trust. Bribery is considered a criminal act and it is categorized as a white collar crime. Bribery can be offered or accepted with something promised, money, property, goods, or anything that has value to the other person. Bribery can also be and is associated with extortion. On the other hand one cannot confuse a gift as a bribe. A gift is not a bribe because when a gift is giving there are no intentions or talk about influencing the person the gift is being given to. There are many different types of bribery such as in sporting events where one can bribe a player or a decision making official such as......

Words: 784 - Pages: 4

Bribery

...Bribery is a common ethical problem in business and normal life and as the author stated in the Toronto Star article, “it is every CEO’s worst nightmare” to find his company name under a bribery scandal headline. However, this ethical problem might not be considered a problem in other countries in the world. The question that has been raised and discussed in the class, given this fact, is what should an international company do in situations in which it either bribes or loses in foreign countries? Should it accept the fact that bribery as part of the business in this country or should it maintain the same ethical standards it used to hold in its country of origin Clearly the active agent in this case is the international company. The passive agents are competitors, society and investors. There are only two choices, in my opinion, for the company; either to bribe or not to bribe. Although we discussed another choice in our class in which a company use a local agent to do all the dirty tasks, but I believe it is exactly the same as paying the bribe by itself. If we apply the utilitarianism model to analyze this situation focusing on the purpose of maximizing company’s profits, some people might not consider the company's bribes unethical activities. As long as the company’s market share is increasing and investors are gaining more money, nobody cares what the company has done to accomplish these goals. In my opinion, under the same method of analysis and only considering......

Words: 1693 - Pages: 7

Corruption

...PUNISHMENT * CORRUPTION * WOMEN SECURITY AT WORKPLACE * CHILD LABOUR * CHEMICAL GASTRATION FOR RAPE CRIMINALS * BANKING AMENDMENT BILL * Corruption in India Introduction "Power tends to corrupt, and absolute power corrupts absolutely." It is not easy to define corruption. But in a narrow sense, corruption is mostly concerned with "bribery" and it takes several forms. Corruption is a global phenomenon and it is omnipresent. Corruption has progressively increased and is now rampant in our society.National scenario. Corruption in India is a consequence of the nexus between Bureaucracy, politics and criminals. India is now no longer considered a soft state. It has now become a consideration state where everything can be had for a consideration. Today, the number of ministers with an honest image can be counted on fingers. At one time, bribe was paid for getting wrong things done but now bribe is paid for getting right things done at right time. Effects of corruption Indian administration is tainted with scandals. India is among 55 of the 106 countries where corruption is rampant, according to the Corruption Perception Index 2004 Report released by Transparency International India. Corruption in India leads to promotion not prison. It is very difficult to catch ‘big sharks’. Corruption in India has wings not wheels. As nation grows, the corrupt also grow to invent new methods of cheating the government and public. Causes of corruption The......

Words: 994 - Pages: 4

Corruption

...Effects of Corruption in Multinational Corporation’s [Student name] [Professor’s name] [Course title] [Date] Introduction Corruption can be defined as a spiritual or moral deviation from an ideal. Corruption come in different styles and that include bribery and funds embezzlement. Corruption has been the number one menace in many countries of the world. It impacts countries in many ways, impacting economy and development in a negative way. Corruption tends to raise the cost of government and may lower the rate of infrastructure growth. Most importantly, corruption has a negative impact on capitalism and foreign investment in that; it changes the environment which in turns affects decisions and actions. Corruption causes discriminatory treatment along tribal, ethnic, race and class. It also impacts in decision making process. Multinational corporations (MNCs) may be unable to compete in certain countries due to dishonesty by government officials, dependent upon a system of graft and bribery to approve and facilitate permits and various company operations. Corruption may be at the highest levels of government, where government decisions regarding military equipment, civilian aircraft, infrastructure or broad policy decisions about industrial subsidies are made, based upon favoritism rather than ethical weighing of facts. Corruption may involve elected officials and politicians as well as nonelected officials. Corruption may be voluntary and petty, for instance,......

Words: 1166 - Pages: 5

Bribery

...7. In your opinion, are bribes ever acceptable? Why or why not? Provide examples and how you would handle No, in my opinion, if we encourage or we get accustomed with bribery, it can lead to a corrupt society and can do more harm in the community. For example, if a community or society get used to bribery, it can lead to a higher corruption rate. Having a higher corruption rate in a country can have a negative impact in economic growth. In addition, bribery can have a bad impact in the community, and for example, if a person is trying to bribe someone to approve their proposal (can be a product or project) without undergoing to its due process, this can lead to low quality products and worst it can lead to poor outcomes. 8. What are ethical dilemmas? Why do they exist? Provide some examples. Ethical dilemma is a situation that any side you choose can argue about what is right and what is wrong. Examples: A new sales employee was asked by his supervisor to disregard the company's return policy and give the product to the customer and asked not to report the incident. Your Professor asked you perform a peer evaluation of your group members to determine the grade. One of your group member is your friend, who did not participate in group discussions, meetings and did not contribute in your class project at all. Giving him a passing grade will let him pass the class, and he will fail the class when he gets a low peer evaluation score. 9. Discuss the cultural......

Words: 299 - Pages: 2

Bribery and Corruption

...ethical and social responsibility issues involved in this case or dilemma? The main ethical issues in this case include bribery and curruption. It is a unethical for Australia to have business dealings with a dictator that does not comply with the UN resolutions, further the UN had put a sanction on the Saddam government but under the oil for food program scheme Australia was the main trade partner. At the same time Australian company AWD was the bigger fraud and bribery company that dealt with Saddam government. The social responsibility issue was that Australian government had traders with a dictator that was starving his people while he lived in mansions and ruled the country with brutal aggression wasn’t bad enough the Bribery and corruption of these companies are outrageous. AWB, which had control of foreign wheat production from Australia, had ruined Australia’s low corruption image single handedly. Who are the main stakeholders and what are each of their primary interests? • Saddam hussain and iraqi government – sell the oil that noone was buying in exchange for other resources such as wheat • Australian government – get good deals by exchanging wheat for oil What theoretical frameworks or models that you are aware of so far in this course might apply to this situation? • Global Codes of Ethics • Bribery and Extortion • Curruption What actions or decisions would be likely to yield the most ethical and socially responsible......

Words: 348 - Pages: 2

Corruption

...Corruption is efforts to secure wealth or power through illegal means for private gain at public expense; or a misuse of public power for privat e benefit. Corruption like cockroaches has co- existed with human society for a long time and remains as one of the problems in many of the world’s developing economies with devastating consequences. Corruption as a phenomenon, is a global problem, and exists in varying degrees in different countries (Agbu, 2001). Corruption is not only found in democratic and dictatorial politic s, but also in feudal, capitalist and socialist economies. Christian, Muslim, Hindu, and Buddhist cultures are equally be deviled by corruption Corruption in India From Wikipedia, the free encyclopedia Political corruption | Concepts | * Bribery * Cronyism * Kleptocracy * Economics of corruption * Electoral fraud * Nepotism * Slush fund * Plutocracy * Political scandal | Corruption by country | | Europe | * Albania * Armenia * Belgium * Bosnia * Denmark * Finland * France * Germany * Croatia * Cyprus * Czech Republic * Georgia * Greece * Iceland * Ireland * Italy * Kosovo * Latvia * Lithuania * Luxembourg * Macedonia * Moldova * Montenegro * Netherlands * Poland * Portugal * Romania * Serbia * Slovakia * Slovenia * Spain * Sweden * Switzerland * Ukraine | Asia | * Afghanistan * Bahrain * Bangladesh * Cambodia *......

Words: 8076 - Pages: 33

Corruption

...Executive Summary Corruption has long been a part of world economy, and still is today. It can come in the form of bribery, embezzlement, fraud, blackmail, or extortion and can be small-scale involving a sector of a company, or large-scale seeding through government or an entire market. More recently has been the rise of globalization and anti-corruption legislation and organizations, all of which pose a real threat to the existence of corruption and unethical corporate behaviour in international business. Risks of displaying unethical corporate behaviour such as bribery and corruption includes repercussions in the form of anti-corruption indictments or public relations disasters and reputation damage resulting from negative publicity surrounding poor moral actions. Some economists argue that bribery and small-scale corruption is essential to doing business in some host nations and market, and others argue that in the long term, participating in unethical behaviour has negative impacts on both the local economy and the parties involved. Multinational corporations constantly involved in international business dealings can do three things to stop corruption: (1) - have ethical standards or company-wide moral codes in place to avoid having employees involved in unethical corporate behaviour, therefore making anti-corruption legislation easier to regulate, (2) – they need to use their resources and effects on local markets as leverage to discourage corruption in any......

Words: 2847 - Pages: 12

Bribery

...International Business and Bribery Have you ever bribed someone to let you do something that you weren’t allowed to do? As much as I hate to admit to it, I have done it my fair share of times. Bribery can be a good or bad thing depending on the situation and how the bribe is used. No matter what I believe that bribery can usually lead to bad consequences. Though it can happen for just small things such as slipping someone a 20 dollar bill to get you into a club, it can also happen in big corporations that are involved in international business. If they are discovered by the government these big companies will pretty much lose everything. For example, “In February of 1975, Eli M. Black, the CEO of United Brands Company, jumped from the 44th floor of his New York City office Building. Black’s jump followed a $1.25 million bribe to Honduran Chief of State General Oswaldo Lopez Arellano to obtain reduced shipment taxes on the exportation of bananas”( Smith 1). This example cost the life of one person as well as high level job positions for 2 people and it hurt the company in a very negative way. This is just one example of a company that has been hurt really badly because of bribery. I will state a couple of more later on in the paper. One way most people don’t know is that bribery happens in the government most often with lobbyists. The whole system is corrupt and its one of those things that is very hard to fix overnight. You also have to remember that some bribery can also......

Words: 3434 - Pages: 14

Bribery and Lobbying

...Bribery is a form of corruption. An example of bribery is giving money or a gift to a teacher to get a good grade. Lobbying is an attempt by a group or individual to influence the decision of someone or a group or even a public official. There is a major difference between bribery’s and lobbying. Lobbying is a legal form of actively supporting a cause or position while bribery involves the giving of money or other incentives to persuade somebody, in authority, to do something that is dishonest or illegal. Bribes are unmistakably considered to be unethical, but people's opinions change when seen in past situations whether they participated in offered bribes themselves or not. Persons, who did not offer bribes, judge those who offered them and those who accepted them more critically than other people. The SLOC can say that the gifts and medical care that was given was not intent to bribe but an attempt to help some of the members of the IOC. The SLOC paid for medical expenses for a person that had hepatitis. So easily they can say that the reason free medical care was provided was to make this influential member of the IOC better and that was their intent. Under the FCPA it does not matter how much money or the value of anything given it is the intent for what you are doing it for. If you intent is not a good intent then that is considered bribery. I also don’t think the entire community should be held responsible for something that the members violated. Punishment for......

Words: 418 - Pages: 2

Bribery and Corruption Is Endemic and Unavoidable

...Bribery and corruption in the public sector is endemic and unavoidable in all societies. There is growing consensus that corruption and bribery are dangerous to the state economies and harmful to the society. Nevertheless, corruption and bribery are endemic and inevitable in many societies when contacted with government institutions where the heads or leaders are corrupt in the self-regarding procedures and part of officials straightly infringes legal restrictions by abusing the power to accept the payments of bribe. However, it is important to distinguish between corruption and bribery, when discussing the problem which resulted by them. Corruption is probably identifies a public official who illicitly uses his position or discretionary power to acquire some benefits for himself or for another. Whilst, bribery, which is an accompaniment of corrupt conduct and as a supply side or a demand side when corruption procedure occur in the public institutions or entrepreneurial activities. The incidence of corruption is relevantly high in developing and transition states where bribery is endemic and ubiquitous, particularly within the well-organized corruption system. ! Well-structured organization could guarantee that the unofficial payments which paid by firms or individuals will ultimately delivered. !analogically, under a well-organized system, bribe recipients perform as consolidated suppliers and set the marginal revenue less than the marginal costs to elucidate the higher......

Words: 944 - Pages: 4

Corruption

...The Effects of Corruption and Economic Growth Cassandra Rogers Economics 523 Dr. David Dieterle Table of Contents Abstract……………………………………………………………………………………………3 Effects of Corruption on Economic Growth………………………………………………………4 Definition of Corruption..................................................................................................................4 Economic Rent…………………………………………………………………………….4 Bribery…………………………………………………………………………………….5 Trade Restrictions…………………………………………………………………………5 Is Corruption Good or Bad for an Economy………………………………………………………6 Low Levels of Corruption…………………………………………………………………6 Vietnam’s Economic Growth……………………………………………………..7 High Levels of Corruption………………………………………………………………...8 Conclusion………………………………………………………………………………………...8 References………………………………………………………………………………………..10 Abstract Corruption alone is not what fails an economy in growth. There are other factors to consider, such as, a weak and unstable government institution. Corruption can actually bypass these irregularities and possibly create growth in an economy. Studies show that there is no actual link between corruption and economic growth in “free” countries. In fact, low levels of corruption in free countries can be beneficial in economic growth. However, high levels of corruption can damage economic growth no matter the type of government institution or not. Effects of Corruption on Economic Growth If you ask citizens today, a great majority would......

Words: 1929 - Pages: 8

Corruption

...Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Corruption may include many activities including bribery and embezzlement, though it may also involve practices that are legal in many countries. http://www.google.com.ph/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=corruption Political corruption is the use of powers by government officials for illegitimate private gain. An illegal act by an officeholder constitutes political corruption only if the act is directly related to their official duties, is done under color of law or involves trading in influence. Forms of corruption vary, but include bribery, extortion, cronyism, nepotism, gombeenism, parochialism patronage, influence peddling, graft, and embezzlement. Corruption may facilitate criminal enterprise such as drug trafficking, money laundering, andhuman trafficking, though is not restricted to these activities. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is also considered political corruption. The activities that constitute illegal corruption differ depending on the country or jurisdiction. For instance, some political funding practices that are legal in one place may be illegal in another. In some cases, government officials have broad or ill-defined powers, which make it difficult to distinguish between legal and illegal......

Words: 6310 - Pages: 26

Bribery

...Research Methodology • Title A study of the effect of bribery and corruption with lack of censorship in the governmental institution There are various reasons why corruption takes place and takes hold. Sometimes it is due to the fact that officials are simply not paid very much and so they need to supplement their salaries with money from bribes. Sometimes the bureaucratic system is set up in such a way that officials simply refuse to carry out their duties unless they are ‘encouraged’ by being offered bribes. In other cases it is actually part of the tradition and culture of a country to give and receive ‘gifts’ in order to get anything done. In some cases companies from less corrupt countries allegedly engage in bribery in order to do business in countries where corruption is the norm, otherwise they would not be able to operate successfully in those countries. It can be argued that if such companies did not bribe officials in the necessary countries then the economies of those countries would suffer because fewer companies would invest in them, thus making them poorer. On a smaller scale corruption is often just a result of people’s natural desire to ‘beat the system’. Mostly, corruption occurs in environments where it is tolerated and where the temptation is too strong to resist. In the following paragraph there are some examples of how bribes take place in each and every one of them. • Problem Statement  Main Problem: A person gives some money to......

Words: 2201 - Pages: 9

Bribery and Corruption in International Trade

...Bribery and corruption is a way of life in many countries. These practices affect the way international business is regularly conducted. However, in most of these countries, it is illegal to offer or receive bribes or engage in corrupt practices. Yet corrupt practices are a part of the ‘culture’ of ‘doing businesses. Unless companies ‘conform’ to such practices, in many cases, international business cannot be transacted. This paper will attempt to provide discussion about bribery and corruption in international trade example in vary different point of view in according to the principal ethical system suchlike religious, philosophical and ‘natural’. It will anayize the case of Siemens bribery scandal related to ethical issues. Bribery is a most important issue of concern to many companies. Incidents of bribery vary across many countries. Not everyone has the same opinion about this issue. Hong Kong and Greek managers are less critical of bribery in certain situations than Americas. Paying bribery carries with it a great risk to damaging the company reputation with the country which the briberies are paid and at home. Moreover, there is also the risk that the corporate culture of the company will become more open-minded of several of other practices at the legal issues. There is also evidence to suggest that those countries with the reputation for bribery and corruption damage themselves as it reflects in their economic growth has a low rates for high level of......

Words: 1520 - Pages: 7