Chapter 10
inherently wrong, illegal, compromise, corrupt governments, never stop, stand, receiving, dependence, deceive
Arguments against bribes: o ______________, cannot be accepted under any circumstances o ______________ in the US and most developed nations and therefore, unfair elsewhere o One should not ______________ her or his own beliefs o Managers should not deal with ______________ o Such demands, once started, ______________ o One should take a ______________ for honesty, morality, and ethics o Those ______________ bribes are the only ones who benefit o Bribes create ______________ on corrupt individuals and countries o Bribes ______________ stockholders and pass on costs to customers
FCPA 1977
Bribes became criminal offense
grease payment example
Given to minor officials (clerks, attendants, customs inspectors) for purpose of expediting. Helps get goods or services through red tape or administrative bureaucracies
bribes example
Money given, often to high-ranking officials. Purpose is often to get these people to purchase goods or services from the bribing firm. May also be used to avoid taxes, forestall unfavorable government intervention, secure favorable treatment, and so on.
bribes
Relatively large amounts of money given for the purpose of influencing officials to make decisions or take actions that they otherwise might not take; if officials considered merits of situation, might take some other action
profits, everybody does it, accepted practice, commissions, taxes, or compensation
arguments for bribery: o Necessary for ________ in order to do business o ____________ -- it will happen anyway o It is an ____________ in many countries--normal and expected o Bribes are forms of _______________ for conducting business between cultures
grease payments
minor, facilitating payments to officials for primary purpose of getting them to do whatever they are supposed to do anyway § Commonplace in many countries § Not prohibited § Relatively small sums of $ given for purpose of getting minor officials to: · Do what they're supposed to be doing · " faster or sooner · " better than they would otherwise do
bribe costs
o Seldom fully understood or described o World bank estimates >$1 trillion bribes each year o World Economic Forum: >5% of world domestic product o Retard economic growth, especially in emerging economies o Gov officials accepting "speed" money or "grease payments" to issue licenses --> economic cost 3-10% above licensing fee o Tax collectors permitting underreporting of income in exchange for bribe --> Income tax revenues may be reduced by up to 50% o Gov officials take kickbacks --> goods & services priced 20-100% higher o Many indirect costs · Demoralization & cynicism & moral revulsion against politicians & political system Politicians swept from office
bribery
primary form of corruption found in global business; the practice of offering something (usually money, also other monetary benefits) in order to gain an illicit advantage