...Yanis Benjedla Socheat Bourg Engl 110 Business and gifts. To start it is important to know what is a bribe. A bribe it is an amount of money given illegally to some one in return for a done favour. In certain countries, it is common to give cash gifts during business interactions. Some people would say these gifts are bribes and are dishonest. Others would say it's just a part of doing business in a culture. In the case of work it is possible to think, offer a gift during business meal is not a bribes. Therefore to describe it lets develop three different points, we will see in first it is possible to offer gifts in certain culture, then that depends on the amount of money invests in the gift, and for finish it is a simple way to thank a company or a person with whom you worked. Firstly it is possible to offer gifts in certain culture. Indeeed in certain cultures, the exchanges of gifts are necessary to conclude from the business, these practices are very present, and are very well seen in certain countries as in Italy. It is thus very important to differentiate two various categories of gifts: gifts offered by interest in the goal to sign a contract, and the gifts of thanks. One also gives presents quite simply because of being in our culture to do it, to maintain the good relationships with the customers and the business. Secondly according to the people the gift should not exceed a certain amount of money. Indeed some suggest that the value of a gift should not exceed...
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...Case study of Japanese bribe The case basically talks about the “bribe” in Japan by the Lockheed Aircraft Company. Mr. A Carl Kotchian is the president of the company. In 1970 they were saved from bankruptcy emergency government loan of $250 million. In order to save from financial disaster Lockheed is desperately looking to sell it air craft in major Japan airline. Eventually Kodama succeed in entering in to contract sell Lockheed aircraft in Japan with $9 million bribe to the Prime Minister Kukeo Tanaka and other government official, they knew that by paying the bribe they were sure that they will get the contract to sell their plane in All-Nippon Airline. Officials from private trading company advised about the bribe, but Mr. A Carl Kotchian says that it was the “Japanese Business Practice” in which local consultant is in more supportive to keep in with local “business practice” US investigate and found $22 million as bribe or secret payment but they mention it as “marketing cost in their books of account. Internal Revenue Codes states it as bribe which is directly paid to the officials and employees. But however it was not considered as bribe during that time for no us enact rules by US government. But due to guilt of bribe Mr. Kochian was resign with the pressure from board of directors and Kodama was arrested. Mainly there are three main stake holders; 1. Mr. A Carl Kotchian who was the president of Lockheed Air Craft Company who bribe different Japanese...
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...and shape business behavior? High ethical standards require both businesses and individuals to conform to sound moral principles. Business ethics comprises the principles and standards that guide behavior in the world of business. Culture does affect ethical standards and shape business behavior. For example, in America unethical standards in a business cause one in four to witness it in the last six months (LRN, 2009). This is because the Western world is very individualistic in their thought processes, so they become competitive, and will hurt anyone in the process to get to the top. Is it ethical to take part in corrupt international business transactions? Legal? Explain. Yes, culture can affect the ethical standards and shape business behavior in many ways. One of the ways are bribes, many business in other countries uses bribes to get what they want. This is how many of the countries get things done. On the other hand there are still many companies that don’t believe in bribes and think that it is unethical in business, and then they find it very difficult to continue their business in those countries. The reasons why many companies use bribes are because their government officials have very low salaries (Shaw, 2010). Lucrative positions are "sold “Further, “at different rates, it depends on the bribe. When companies take part in corrupt international business transactions, it does mean that it is ethical. It is up to the manager to do business without paying...
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...Bribes and Morality Machiavelli (1882), in writing of cruelty and clemency asks the question of whether it is better to be loved or feared and asserts that both are best. Machiavelli (1882) justifies this conclusion by saying that people are fickle. They will pledge their lives when danger is distant and benefits are high, but desert those to whom they pledge their lives when danger is imminent. The person who places love above all else is in danger during times of crisis. Conversely, men are careful not to offend those they fear, because they fear the punishment and are more likely to remain true to their pledge. There is a caution in this assertion to know the difference between fear and hatred and the recommendation is to be feared, but not hated. Man should strive to be in control of that which is can and not rely on the uncontrollable. Since love is dependent the perception of others and fear is dependent upon actions, man should build on the actions he can control but to do so in such a way as to escape hatred. Pastin and Hooker (1980) state that the Foreign Corrupt Practices Act (FCPA) is legislation designed to prevent bribery of foreign officials and other payments for the purpose of obtaining or retaining business. The legislation is an attempt to address the problem of corruption, but rather than address bribery from a moral perspective, Pastin and Hooker (1980) raise the issue of whether the legislation itself is moral. They offer two tests to assess the...
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...offering and receiving bribes is entrenched in the people’s day to day lives with a view of receiving a monetary favor for the service rendered. Business organizations face it rough when they want to start new branches or even when aspiring business people launch into the market. Government official who are charged with the duty and responsibility of offering the necessary business licenses usually use the very position to frustrate the process. They create unnecessary delays with a desire to receive a bribe so that they can expedite the process. Each organization is facing a dilemma whether to engage in the commonly accepted practice of bribery which is a direct act of corruption or not. Local people who want to start a company a given country usually have to get various licenses and approvals from various government departments as a requirement to start a business. Multinational companies desiring to acquire land permits and other licenses also have to contend with the same old vice where the public service workers expect to be bribes to perform their duties. Bribery raises an ethical question where the issues and always puts a person’s principles at the balance. The question of bribery being good or bad is interpreted differently depending on who is looking at the issues. It is generally accepted that bribery is a classic example the hinders growth and development of a country since one would argue that it makes the process of establishing a business much more expensive. This...
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...179 * Commission for Discipline Inspection of the Communist Party 179 * Supreme People’s Procuratorate of the People’s Republic of China 179 * Ministry of Public Security of the People’s Republic of China 180 * State Administration for Industry and Commerce of the People’s Republic of China * Case * Background China’s substantial corruption challenges are deeply rooted in cultural traditions as well as the country’s complex transitory conditions. Further, corruption is increasingly growing in significance as a political issue in China, and in an international context, China’s corruption problems have attracted extensive attention. Like any emerging market, China suffers from corruption and an often unethical business environment. What makes China different from many other national economies is the scale of the bureaucracy and the pace of economic development from a low base, both of which have created conditions ideally suited to the growth of corruption and opportunities for massive financial gain by underpaid local government of officials and by entrepreneurs eager to amass personal fortunes as quickly as possible. The sources of corruption in China In overall terms, corruption in China derives from three main sources; (1) high economic growth following the extensive economic reforms made in order to progress towards an open economy, (2) the incomplete nature and inconsistent application of these reforms and (3) aspects of Chinese cultural...
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...Narmin Ahmadli MBA2016 Starnes – Brenner Machine Tool Company: To bribe or not to bribe? 1) Frank’s doing in Latino is not ethical. In Latino bribe is the part of business. If you don’t bribe you cannot survive here. Companies from other countries as Germany, Italy and Japan accepted it. But ethically businesses should participate in an economy, they should also attempt to change this economy into more honest and fair economy. In that situation, Frank’s doing is unethical because instead of giving bribe he should try to change business environment. “Other countries do it as well” doesn’t make him free from his ethical obligation. 2) The Foreign Corrupt Practices Act prohibits American executives and firms from paying bribes to officials of foreign countries. So both payments are illegal. 3) First bribe which paying to the government official is extortion. Frank was obligated to pay this amount of money under that situation. It was lawfully, because the government official wanted this money for adjusting their defects of the machines. In the USA it is legally wrong, but in Latino it is only morally wrong. But everything is legally here. Second bribe which paying to the dockworkers is lubrication. He paid small cash of money to dock workers to expedite them. 4) There are different things. Big dinners are the place where the companies get business transactions. It is something doing without the expectation. Bribe is given in the hope of benefit or doing illegally something. 5)...
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...Doing Business in Emerging markets Homework 2: Starnes-Brenner Machine Tool Company- to bribe or not to bribe Silvia Mattei 1. Introduction to the main issue Corruption, bribery and other unethical behaviours are still one of the major concerns in International Business, influencing not only the companies’ performance in local markets, but also mining competition and the welfare of the countries in which this practices are considered part of the culture as such. In particular for very large international companies, with subsidiaries spread all over the world, to keep track of unethical practices may be difficult, as to maintain the integrity of the corporate culture in all the people involved in the organization, from the employees, sales managers and top management. Every country has a different culture, and every culture has its own level of tolerance against corruption. Since bad practices like bribery are well ingrained both in the countries’ culture, as well in the companies’ culture, it is evident that changes do not happen over-night, and to draft an anti-bribery policy and post it in the office blackboard is not enough. The aim of this paper is to analyze several perspectives on the topic, taking the reader into the discussion by giving him/her pro and cons by analyzing a specific company and his cultural and managerial issues when facing a period of internationalization and internal changes. 1.2 Company profile Starnes-Brenner Machine tool...
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...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 on its effect on democratic voting procedures (e.g. Peters and Welch, 1980) to its consequences for small business in Russia (Barkhatova, 2000). The truth is that this ancient problem reaches far and wide, and that “it has had variegated incidence in different times at different places, with varying degrees of...
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...Shakedown | March 16 EBC | This report analyzes what actions should be taken to sustain business after a situation which may damage future business enterprises. | Analytical Report | 3/16/2013 Dear Mr. Zhuk, I have taken the initiative to provide you with some options to help you with your business situation. As you know, starting a profitable business in a developing country can be very rewarding because of several reasons. However, it is a challenge to abide by the law when bribery takes place throughout the country. With this report I will analyze the issues at hand and give some options that maybe lead to solutions. In the Ukraine, international business owners have trouble keeping their businesses running smoothly without losing their ethic. It is custom to offer a form of payment in order to receive a faster delivery, or in this case not to be harassed further. It is visible that you are struggling to deal with these unaccustomed methods and you may be confused as to whether you should pay. It is not a good idea to take this offer and bribe the UTA because of several reasons. Handling business in developing countries can be tricky and it does require hands-on experience. Bribery and corruption are boldly exhibited. It is not uncommon to use payments to expedite processes in the Ukraine, as businesses ask for money to complete the tasks they perform. Your business has overlooked the importance of ethical behavior when acquiring a few phone lines as it would...
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...fines to settle legal suits bought by the U.S. and German governments. The governments asserted that Siemens had used bribes to win business in countries around the world. These were the largest fines ever levied against a company for bribes, reflecting the scale of the problem at Siemens. Since 1999, the company had apparently paid some $1.4 billion in bribes. In Bangladesh, Siemens paid $5 million to the son of the prime minister to win a mobile phone contract. In Nigeria, it paid $12.7 million to various officials to win government telecommunications contracts. In Argentina, Siemens paid at least $40 million in bribes to win a $1 billion contract to produce national identity cards. In Israel, the company “provided” $20 million to senior government officials in order to win a contract to build power plants. In China, it paid $14 million to government officials to win a contract to supply medical equipment. And so on. Corruption at Siemens was apparently deeply embedded in the business culture. Before 1999, bribery of foreign officials was not illegal in Germany, and bribes could be deducted as a business expense under the German tax code. In this permissive environment, Siemens subscribed to the straightforward rule of adhering to local practices. If bribery was common in a country, Siemens would routinely use bribes to win business. Inside Siemens, bribes were referred to as “useful money.” When the German law changed in 1999, Siemens carried on as before, but put in place...
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...Ghofran Mahrouqi Janeille Okpere Course: BUAD 625: Organizational Leadership and Ethics October 13, 2014 Ethical Issue: Sweta Mangal, CEO and co-founder of Ziqitza Health Care Limited (ZHL), an Emergency Medical Service (EMS) must decide how to respond to an official insisting that ZHL bribe him in order for him to release payment for ambulance services ZHL has provided. Mangal is confronted by a newly hired financial officer, Sanhay Rafati, who argues that if the bribe is not paid his office, will not be able to make payroll or maintain its ambulances, and that the company will face a terrible financial situation. The only alternative ZHL can take at this point is to take out a loan with a high interest rate, which will result in lower profits and may not be financially sustainable long-term. The founders of ZHL have pledged to operate with complete transparency and never pay bribes in its business transactions. As Mangal explains to Rafati, their commitment to these principles is absolute-part of ZHL’s DNA. ZHL operate in a highly corrupt environment in which it’s trying to change by example. Bribery is so common place that it’s viewed simply as part of doing business. Refusing to bribe the official can be detrimental, but ZHL has not only grown rapidly but has earned an international reputation that has attracted the investors. Furthermore, Indian society appears to be evolving, spanning a grassroots movement to combat corruption. What is the right decision and how can...
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...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 officials or people of authority to get or obtain things that are not his right or to get any privilege or special favor...
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... THE DIFFERENCE BETWEEN A ‘GIFT’ AND A ‘BRIBE’ Question: (a) Several times a year, office and warehouse personnel are sent “gifts” from vendors. (b) What is the difference between a “gift” and a “bribe”? * * * Answer: (a) The answer to this item is not so ‘clear cut’. While a ‘gift’ may not rise to the level of a kickback, if the ‘gift’ was given with the intent of influencing the Contractor to use the vendor’s services on the federal contract in question - - it would then be illegal. (b) While the words ‘gift’ and ‘bribe’ may seem rather ‘simple’ and obvious to most of us, in business – accepting one or the other (sometimes without even knowing it) - could cost a company millions. The definition of ‘bribe’ and ‘gift’ is as follows: Gift: Something of value given without the expectation of return Bribe: Something of value given with the hope of a future influence or benefit Gifts and bribes can be money or actual items such as tickets to a sporting event, rounds of golf or meals. When a ‘gift’ is given or accepted – regardless of the intention of the gift-giver - it can give the wrong impression and the ‘appearance’ that whatever has transpired is not on the ‘up and up’. In other words, what may have been an innocent gesture – could be interpreted as just the opposite and can blur the lines of integrity, fairness and trust. Depending on whether you do business solely in the private sector, with state, local or...
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...Roman Stoic Philosopher once said, “He who does not prevent a crime when he can, encourages it.” This is absolutely true in the world today as we witness corruption in business. Alan Boeckmann, the CEO for Fluor, a multinational construction firm has chosen to lead a business with the highest level of ethical conduct and morals. In this paper I will discuss the background of the Fluor and discuss the companies rise to one of the most respected engineering firms in the world. I will also discuss the utilitarian and deontological choices that Alan Boeckmann has made regarding his companies conduct in a world where conduct in the construction industry has been less than desirable. Fluor has strived to be corruption free for many years because of Alan Boeckmann’s actions and conduct. To give you a better description of what Fluor specializes in, here’s a description from their corporate website. “Fluor is a FORTUNE 500 company that delivers engineering, procurement, construction, maintenance (EPCM), and project management to governments and clients in diverse industries around the world. For nearly a century, clients have selected Fluor as their company of choice to complete challenging projects in remote parts of the world.” (Fluor, 2010) This description of Fluor shows that they operate and do business around the world. Alan Boeckmann has been with Fluor for a number of years. He’s faced many challenges regarding the ethical conduct of his company as well as his own...
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