...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...
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...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 demand...
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...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 corruption. Corruption...
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...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 be good. It...
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...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 economy,...
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...Critical Analysis: Bribery and its Effect on Business Practices BMAL 560-D06 Dr. Henry Critical Analysis Critical Analysis Topic: Bribery and it’s Effect on Business Practices PRINCIPLE: * Bribery refers to “the offering, giving, soliciting, or receiving of any item of value as a means of influencing the actions of an individual holding a public or legal duty” (Bribery, 2015). * Economist say that bribery negatively impacts economic growth because it encourages rent seeking behavior (Bribery, 2015). * Rent seeking behavior refers to an “individual’s or corporation’s attempt to illicitly influence the open market in order to provide that individual or corporation with a disproportionate amount of wealth” (Bribery, 2015). * The United Nations reported that corruption costs governments about $1.6 trillion dollars every year. * Economists estimated, based on a poll done in 86 countries, that 1 in every 4 businesspersons worldwide, paid a bribe in the past year (Lawrence & Weber, 2014). * Legislation has been established in an attempt to combat bribery. * The US Foreign Corrupt Practices Act (FCPA) is considered to have the widest jurisdictional reach, being aggressively enforced, both nationally and worldwide (Ernst & Young, 2013). PRACTICE: * Bribery is found in almost all sectors of the global market (Lawrence & Weber, 2014). * An analysis of Transparency International’s Corruption Perception Index by...
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...understanding on how Germany conduct business and also to make sure the company is ethical. A few international countries believe in corruption. Corruption can consist of bribery and nepotism. Bribery is more common in underdeveloped countries that are looking for additional income to bring in. Bribes are expected in many countries, the United States’ 1977 Foreign Corrupt Practices Act prohibits payments made to foreign government officials with the aim of gaining or maintaining business (Here Comes the Bribe). The Foreign Corrupt Practices Act was updated in 1998 after bribery was banned from Germany. Now the Foreign Corrupt Practices Act applies to foreign firms and persons who cause an act in making such a corrupt payment within the United States territory (Foreign Corrupt Practices Act). Bribery is another way of saying extorting money from someone. Bribery is when money or something value is promised to, given to, or taken form an individual or company in attempt to sway someone decisions. Nepotism is more of a government corruption. Government will use their powers for dishonest gains or illegal means. German engineering conglomerate Siemens, rocked by the worst bribery scandal in the country’s history, they won a court ruling reversing a $56 million fine against the Munich-based company (In Germany, Bribery Doesn’t Always Mean Corruption, and Siemens Finds). Former manager pleaded guilty to paying bribes to win the contract from Italian Enel Group. A small court ordered...
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...Unit 1 Journal Entry In recent years, corruption and bribery become a controversial issue worldwide. Some countries including the U.S. and China have specific laws to resist these conducts, but some countries like Somalia consider corruption and bribery as a tool of doing business. This difference between countries is due to the deeply cultural distinction. After reading chapter five on ethical values, it brings me a good argument about the definitions of morality and ethics. According to the textbook, ethical relativism and ethical objectivism are two different principles (Lawhead, 2010). Ethical relativism states that the human option decides a person's standpoints to judge if a conduct is ethical or not, while ethical objectivism states the moral principles, which is universally acceptable regardless of the individual and society, do exist and it is objective (2010). These two principles are all true. For example, murder is considered as illegal and unacceptable worldwide. This conduct fits for the ethical objectivism. On the other hand, prostitution is considered as unethical and immoral conduct in China while it is a legitimate occupation in Japan. This is an instance of the ethical relativism. In this journal, I will focus on the ethical relativism. First of all, we should know the definition of bribery. It means to voluntarily offer payment by someone seeking unlawful advantages (Wikipedia). In the U.S., in order to prohibit this conduct, Foreign Corrupt Practice Act...
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...the conditions for knowing. Ethical relativism views that there are several ethical truths that depend on the groups or individuals holding them. In the most basic terms, ethical relativism is the belief that different things are true and right, at different times, and for different people (Trevino & Nelson, (2011). Ethical relativism can be applied in the solution of several problems in the society today. One of those problems is corruption, which has affected nearly all countries of the world today. There are more than a few forms of corruption practiced today. However, in the American culture, for instance, the main forms of corruption include bribery, graft, patronage, nepotism and cronyism, kickbacks, unholy alliance and embezzlement (Paul, Miller & Paul, (2008). The two forms of corruption that were discussed and found to affect the Kentucky Fried Beef Company were bribery and nepotism and cronyism. Therefore, this paper will critically examine the issue of bribery and how ethical relativism can be used to limit and prevent bribery in the American culture. The behavior of the heath officer who inspected the Kentucky Fried Beef Company was not appealing. Rather than doing his job, and ensuring that the company upheld hygiene, and it did not...
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...controls, lighting products, power generation equipment and transportation systems. Siemens operates in 190 countries worldwide with recent annual revenues exceeding $100 billion. Opening Case The case started when a senior executive at Siemens Company received a phone call from their business partner in Saudi Arabia. The person who made the call blackmailed Siemens to pay $190 million in U.S currency otherwise he will disclose the corruption made by Siemens in order to win contracts in Saudi Arabia. Since then, the series of events started whereby there are police raids, forensic investigations and arrests top of executives in Siemens. Based on the case, the investigators believed that Siemens has a culture of corruption, that endorsed by senior managers in order to win contracts. The way of bribe used is by the managers will bring the money in their suitcases with confident that they are doing “business as usual”. Case Chronology Started in 1970s until 2007, Siemens has being alleged for a series of scandal include accusation of bribery given to government officials in numerous countries around the world. The actions included one of the former executive of Siemens was accused for handling $77 million in bribes while another situation is they bribing the labour union. However, in the end, Siemens was found guilty and being fined for $800 million by U.S authorities under Foreign Corrupt Practices Act. Response to the scandal, the customers of Siemens were delay their order...
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...How to Reduce Bribery in Chinese BusinessSince the implementation of the reforming and opening policy in 1978, Chinese businesses prospered successfully in a particularly short time with the help of socialist market economic system. However, as the economy booms prosperously, drawbacks have been revealed. One of the most significant drawbacks is the business corruption. Generally, for Chinese business, there exists a comprehensive framework in both the public and private sectors to classify corrupt practices, and facilitation payments, money laundering, active and passive bribery, and gifts are mostly belong to the typical business corruption. (GAN Integrity Solutions, 2015) This essay is going to focus on the solutions to solve the active and passive bribery for the consideration of three perspectives which were ranked by individuals, companies, and Chinese government.Bribery has negative influence on both internal business operation and external foreign investment. On the one hand, bribery rejects the companies’ healthy regulation. According to a research by Charney (2015), in order to operate, more than one third of the surveyed corporate had to pay bribes. This data was based on a survey of 2,300 firms across China with a range of industries. (Levick, 2015). On the other hand, according to Song’s new survey, 25% of the companies avoid doing business in China due to bribery. (2013) Despite Chinese President Xi Jinping's anti-corruption campaign, there is still a considerable...
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...introduced by the United Nations in support of anti-corruption in emerging markets, such as Principle 10 of the United Nation’s Global Compact. We determined to explore this topic area after realizing a paradox: while the United Nations has recognized the phenomenon of corruption as “one of the world’s greatest challenges”, the sole UN principle that addresses this issue is under-developed and is the least among the four focus areas of the Compact (as compared to human rights, labour, and environment). Furthermore, there are even less initiatives undertaken by the UN that specifically address the prevention of corruption in emerging markets, both in business and government sectors. We begin by providing a literature review of past research in our topic area, followed by a theoretical analysis of the causes of corruption in emerging markets. As part of this theory, we have identified five variables that are our focus: level of poverty, cultural boundaries and differences, access to education, amount of extortion and bribery in government and business, and level of transparency and accountability. Using these variables, we arrive at new conclusions and then provide a discussion on their implications for international managers. Throughout the paper, we also explore the magnitude of the effects that have resulted from the addition of Principle 10 to the Global Compact. Introduction A wide variety of research on corruption has been done over the past century: from studies...
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...Introduction: Corruption means committing crime and mischief to the country. It causes great harm to the countrymen. None escape from the harm of corruption. It is a social malady. It spreads its greedy clutches all over the country; each and every government sector of the country is affected by corruption. Government officials, clerks, secretaries and even ordinary peons, security officers and others are engaged in corruption. They take bribe from common people for giving any service. Our country, Bangladesh, has topped the list of corrupt countries five times. There is none to raise voice against the galloping corruption! Even the organizations that collects data about corruption – are themselves corrupted in a very secret way! However there are many reasons behind this corruption. The greed for power, pelf, wealth and money is the root cause of corruption. Avarice, dishonesty, nepotism and favoritism are also responsible for corruption. Corruption Statement of Problem: This paper analysis’s the corruption in Bangladesh. I will discuss the current situation of corruption and its effect. We know that corruption is the main obstruction for development in Bangladesh. This topic is very much related to our social life for that reasons I will try to fulfill the purpose of this research. Objectives of Research: It is very important to identify the objectives of any research .I will describe all the objectives of this research on corruption in Bangladesh. The objectives...
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...Corruption Schemes Anaesha M. Whitaker Corruption Schemes What is corruption? The most common definition of corruption in the economic literature is literature is the misuse of public office for private gain. While private gain is typically interpreted in terms of monetary benefit, it can potentially include non-monetary benefits such as improved chances of re-election and helping friends or members of their social or ethnic networks obtain public resources. The usual interpretation of misuse is the use of office for illegal purposes, impairment of integrity, virtue, or moral principle, inducement to wrong or improper or unlawful means, but it is occasionally construed more broadly as the mis-allocation of public resources in ways that enhance the official's private returns. Recent years have also seen an explosion of empirical research on corruption measurement. The research conducted for this paper, which has developed and used both subjective guides which are based on perceptions of corruption and objective measures of illegal activity. The following topics will be discussed throughout this paper: Corruption Schemes Today; Corruption Schemes Tomorrow; Investigations of Corruption Schemes; and Detection and Prevention of Corruption Schemes. The research conducted throughout this paper focuses on the topics above. Corruption Schemes Today Corruption Schemes today are heavily engulfed in politics. “CHICAGO — Corruption has tainted...
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...The Hong Kong Polytechnic University MGT682 Independent Studies Corruption in China: Effects on Economic Development and Remedial Policies Thomas Wu 02715615G August 6, 2003 The Hong Kong Polytechnic University MGT 682 Independent Studies Corruption and Bribery in China Thomas Wu 02715615G August 6, 2003 Table of Content RESEARCH PROPOSAL TOPIC.........................................................................................................3 INTRODUCTION....................................................................................................................................3 OBJECTIVES AND HYPOT HESIS.......................................................................................................4 NATURE OF RESEARCH.....................................................................................................................5 RIVAL THEORIES.................................................................................................................................5 “GREASE-THE-WHEELS” THEORY .........................................................................................................5 MULTIPLE EQUILIBRIUMS ......................................................................................................................7 LOGIC MODEL......................................................................................................................................8 SIGNIFICANCE OF STUDY..............................
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