Foreign Bribery

  — 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.”
 — facilitating payments allowed (small payments to “grease the wheel” and allowable
    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)
  — U.S. can compete without using bribery
  — OECD treaty (1996) should lead to other countries adopting FCPA standards

Be the first to comment on "Foreign Bribery"

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.