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Jessica Yarington

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 a business scholar found that acceptance of bribes was more likely in countries with low per capita income, low salaries for government officials, and less variation in income distribution (Lawrence & Weber, 2014). * Some people believe that corruption is necessary, even beneficial, to global commerce (Lawrence & Weber, 2014). * According to a 2010

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