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Bribery In Business Essays

The Causes of Bribery and Corruption

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Corruption refers to the abuse or misuse of entrusted power by individuals for personal gain (Pickett & Pickett 2012). Corruption is always utilized interchangeably with bribery. In the opinion of Santoro and Strauss (2013), bribery is the giving, offering, soliciting or receiving of any valuable item to influence or sway the actions of those with power or officials in discharge of legal or public duty. Forms of corruption involve fraud, embezzlement, favoritism, collusion, and extortion. Evidence shows that corruption and bribery have been practiced for many years; although up to date, they have attracted increasing attention. It is unclear whether the attention of corruption and bribery reflect a growing awareness or a growing scope of the vice. Nonetheless, according to Cheng and Ma (2009) corruption and bribery has increased within the recent decades.
The factors or causes, which encourage corruption, are those, which influence the demand for corrupt acts, as well as those, which influence the supply of acts or deeds of corruption. Factors influencing the demand include authorizations and regulations, some spending decisions, as well as provision of services and goods at prices that are below-market. Factors influencing the supply of deeds or acts of corruption include bureaucratic tradition, penalty systems, institutional controls, level or degree of public sector incomes, transparency of laws, processes, and rules, and examples of the leadership (Bowen, Edwards & Cattell 2012).
The Causes of Bribery and Corruption
One of the factors or causes always mentioned particularly for corruption is the inadequate remuneration of employees or civil servants. One can hold against a view that within states where corruption is unchecked or rampant, unemployment is always high and civil servants are advantaged to the point that they have secured a job and remuneration. Nonetheless, according to perverse reasoning, the view is always made that remuneration or salaries of the state employees can be kept low as they have privilege to supplement with bribes (Nestor 2009). Moreover, salaries are always not paid regularly and it is normal for civil servants to go without salary. Even in situations when salaries are paid, unwritten rules can force civil servants to support their extended family with favors and cash.
The instability or insecurity of the political structures of many nations or societies is a major source of corruption. Politicians purchase votes to secure electoral positions, and once in, indulge into corruption to secure financial independence because they do not expect pension once out of office. Within many nations, the common argument is cynically conveyed that individuals who never exploit such opportunity are stupid and naive rather than honest (Masciandaro 2010).
State capture happens when interest groups like business sectors and corporations are capable of influencing the process of law making. Within various transition economies, bribery and corruption have advanced exponentially due to state capture by some oligarchs willing to purchase off politicians, judges and bureaucrats to serve personal interests (Mills 2009).
Peer pressure can too lead to public officials involving into corruption and bribery since the latter or corruption is quasi institutionalized within branches of civil service or system of government. It is challenging for newcomers to question a system in which boss is part.
The Means and Ways of Corruption
Corruption is executed in many shapes and forms and the thoughts of the corrupt appears to have no boundary as to the paths and methods pursued to attain their goal. No matter the cause of bribery and corruption, it often includes the misuse of discretionary power and/or of total control over a service or a resource as a lever. With this respect, every requirement for a formal authorization, every point of control as well as every regulation is possible toll stations. Therefore, it is not surprising that societies or nations where corruption and bribery is rampant show an especially dense regulatory environment (Ragatz & Duska 2010).
Threats or risks of an unfavorable or poor decision: it is regrettably a frequent event within some societies or nations for the police officers to stop drivers then accuse them of an alleged or real violation of traffic with certain hint that it may be settled or cleared via direct payment. Immigration or customs officers can ACCEPT PAYMENT  via cash to clear individuals or goods via immigration even if certain documents are

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Related Topics

Business ethicsPolitical corruptionCorruptionCrimeSinBriberyCorporate crimeOrganized crimeCorruption in IndiaPolice corruption

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Caselets: Bribery and Extortion in International Essay

598 WordsApr 18th, 20153 Pages

Bribery and Extortion in International Business Case

1. Case 1 (payment to general’s Swiss bank account): Would you make the payment to the general’s Swiss bank account? Why or why not? You should discuss the relevant laws in your answer.

I would not make the 2 million dollar payment to the Swiss bank account of the general in charge of the ministry. First, this payment would be in direct violation of U.S. law, the foreign corrupt practices act (FCPA). This law forbids any payment by a company, its employees, or its agents directly or indirectly to a foreign government official or a foreign political party. Providing this payment is a bribe, this practice can lead to large fines and prison time and personally I don’t look good an…show more content…

3. Case 3 (Shares to family of President) Would you provide shares to the President’s son? You should discuss the relevant laws in your answer.

No I would not provide any shares to the president’s son and make him a partner. This is a violation of the FCPA. The case also states that the President’s son is 1: partner of a number of important companies in that country and 2: does not possess any business skills. Even if I was willing to try my luck and make him a partner, he seems to be over extended by being a partner of other important companies. How much time would he be able to provide in building the electrical company? Not to mention that he does not have any useful business skills. I have an obligation to my organization to make sure partners have the proper experience and skills.

4. Case 4 ($25 to police station to fix registration) Would you authorize the payment of $25? You should discuss the relevant laws in your answer.

Yes, I will authorize this payment of $25, this is allowed under the FCPA. Exceptions under the law are made for payments to low-ranking officials who merely expedite the nondiscretionary granting of a permit or a license. In this case I need to complete the sale of an old company car and in order to do so I will need the registration dates on the form and in the police records to

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