Corruption & Bribery in Differing Societies

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Within modern Western contexts, it is generally wrong for officials to accept bribes. However in societies that view their institutions as having a nature and purpose that differs from an individual’s view of nature and purpose, it is not necessarily wrong for businesses to provide bribes. This essay seeks to explore the moral ambiguities among different societies towards corruption and bribery, and also the dilemma businesses face when confronted with the varying practices while doing business globally using business ethics and theories.

Every business has moral principles and guidelines they follow by, however there are no defined ethical practices that every business stands by. Businesses all share the same objective to profit and have to manage the impact of its activities on all its stakeholders. When a business has different ethical practices in the society it operates in, it has to consider from a business viewpoint and also the ethical viewpoint.

In societies where accepting bribes is a social norm, it appears that it is ethical to do so. For example in China where bribery and corruption is a norm in both the public and private sector, Avon Products Inc, the world’s largest cosmetics merchant has started an internal anti-corruption investigation after bribery rumors surfaced. In 2005, several hundred thousand dollars questionable payments were made to Chinese officials and third-party consultants. Avon’s actions have violated the Foreign Corrupt Practices Act(FCPA) that bars U.S. companies from paying bribes to foreign officials. Under FCPA, it is incorrect to treat government officials to dinners and entertainment, however in China it is an essential practice to manage their “guanxi”. It might have been harder for Avon ...

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...g countries and foreign investments will boost their economy and benefit them. However if all foreign businesses do not follow the local norms, the country will be forced to accept global norms or be left behind in globalization. Countries such as UK and U.S. have the FCPA which prohibits companies operating overseas from bribing local officials, however they have not been successful in bringing companies to prosecution. The International Labour Organization (ILO) from the United Nations was established to ensure ethical practices globally, however nations are only bound to its standards if they choose to consent its conventions. The ILO is a good yardstick for businesses to adhere to but is not applicable to every local norm. More has to be done by the FCPA and ILO to ensure the same ethical standards are practiced globally and to discourage bribery and corruption.

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