— bribery condemned and illegal in many countries, yet practiced widely
— is it ethical to give into demands of bribery? (“when in Rome, do as the Romans do?”)
∙ What is bribery?
— FCPA (Foreign Corrupt Practices Act): established in 1977 forbids American
corporations to offer or make any payment to a foreign official for the purpose of
“influencing any act or decision of such foreign official in his official capacity or of
inducing such foreign official to obtain or retain business.”
corporations to offer or make any payment to a foreign official for the purpose of
“influencing any act or decision of such foreign official in his official capacity or of
inducing such foreign official to obtain or retain business.”
— facilitating payments allowed (small payments to “grease the wheel” and allowable
under local law)
under local law)
∙ What is wrong with bribery?
— Violation of duty and trust of gov’t. officials
— Unethical to add to the corruption of officials
— Hurts fair and efficient markets (false competition, rents)
∙ What should be done?
— FCPA has its problems (only US involved, intermediaries often make payments –
not the corporations)
not the corporations)
— U.S. can compete without using bribery
— OECD treaty (1996) should lead to other countries adopting FCPA standards
— OECD treaty (1996) should lead to other countries adopting FCPA standards
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