With the development of international business, more and more companies get large profits in multinational cooperation, also led to a serious corruption problem at the same time. One of the most famous is the Siemens scandal. Although there are many laws to stop transnational bribery, many companies have to rely on bribes to win contracts. Some managers consider the social resources are limited and the distribution exist competition. A bribe is the easy way to obtain the resources that the companies original may not get. Furthermore, some of the company 's products have serious quality problem, the leaders of production will bribe prosecutors. Then the products into the market smoothly, however, this behavior will lead to unfair competition …show more content…
Normal purpose of market competition is required clearly commodity quality, price, service of process. Through fair competition, the market achieve superior bad discard. And this method can promote the healthy development of economy. However, the emergence of commercial bribery makes normal market competition to become rebates, or private income "benefits". In our case, there are two cases that show us serious transnational bribery. One is the Siemens; the other one is the Kitchen best in China. For Siemens case, the leaders of company want to win the contract that makes them corruption. Actually, “Until 1999, German law did not specifically prohibit the payment of foreign bribes to secure business. In fact, these payments were tax-deductible. After the law changed, greater effort was made to conceal payments. Slush fund monies were diverted to a network of accounts and shell corporations. Siemens hired local, outside consultants to help win contracts, setting up business consultant agreements (BCAs) that paid the consultants”(Siemens, …show more content…
For example, in the Infosys in India case, the author considers many people use public office for private profit (Infosys, 2007). The incomes of government staffs are low. Many officials want to get more money, then the corruption of government official become more serious. For instance, the officials skimp on subsidies that are from government to people, and makes people 's life more difficult. Based on three cases, corruption exists in every place. So, how to avoid corruption is important. In my idea, at first, the establishment of law is the most important factor; the legislation must be against corruption. It can avoid some people get private profit through legal grey areas. Usually, the abuse of power is the biggest culprits of corruption. Clear officials responsible for work aspect and build system of property registration are very important. If the people corruptions, they are fired immediately. Finally, people should own fair competition and honest managements to run business as a leader. Obviously, everyone should set up the correct moral consciousness is the most important to prevent
In my opinion, corruption cannot be stopped but it can be reduced with the willingness of the people, as I mentioned above there could be plenty of recommendations but it’s all up to that person to put the effort. I think corruption is a choice; we all have voices and rights and if we chose to do unlawful things there is no one to blame but ourselves. However, there is corruption in every field of job out there. Corruption has been around for years and years and it will continue to be there in the future, it’s something that no one can eradicate. All countries around the world are facing corruption even the most powerful developed countries.
Corruption is an individual and institutional process where there is a gain by a public official from a briber and in return receives a service. Between the gain and the service, there is an improper connection, (Thompson p.28). The two major categories of bribery is individual and institutional corruption. Receiving personal goods for the pursuit of one’s own benefit is personal fraud. An example of individual distortion is the financial scandal involving David Durenberger. Organizational corruption involves “receiving goods that are useable primarily in the political process and are necessary for doing a job or are essential by-products of doing it,” (Thompson p.30). An instance of institutional fraud is the Keating Five case. There are also times where there is a mixture of both individual and organizational corruption in a scandal. An example of this diverse combination is James C. Wright Jr. actions while he was the Speaker of the House.
Even though monopolies are illegal, public corruption allows companies to form and continues to be a problem today. In an article published by the Los Angeles, Anh Do
First, paying bribes and siphoning off millions of dollars from the corporation would eventually lead to the company losing money because building mega projects in politically unstable countries would prove problematic. A sudden regime change would render the contracts useless, as
In the business industry, there are ethical dilemmas that occur on a daily basis. Some ethical dilemma can include stealing or even having fraudulent documents in order to get an unfair advantage within the organization. Another ethical dilemma that has been brought into the light is bribery. What makes bribery unique is that in various parts of the world, bribery has become an acceptable behavior whereas other parts of the world people would consider that as unethical behavior. In order to understand what is acceptable or not when trying to bribe public officials, we must understand the principles of what is considered to be ethical or unethical.
The corruptin is the abusive and inefficient use of resources by trusted powers for private gain ,Corruption is not committed to the rule of law ,justice , human rights and the integrity of public service ,and it hurts every one who's life ,livelihood ,or happiness depends on the integrity of people in a position of authority .sometimes it's devastating impact is more visible . The governance ,transparency ,and fighting corruption is so important to sustaine economic growth.
Corruption is a severe problem that the world is facing at the moment and has been going on for quite a while now. “ The problem of business ethics is infinitely more complex in the international marketplace because value judgments differ widely among culturally diverse groups” (Cateora, Gilly and Graham, International Marketing). What American managers opinion as fundamental, others interpret as a sign of misuse. Performing in an ethically and socially accountable way should be the stamp of every business performance, international or domestic. There are many economic effect of corruption such as weakening the economic expansion, falsifying the competitive playing field and diminishing the excellence of government services and organization. As a business manager or employee if you knowingly know about a bribe it is best to report a
Anti-bribery laws in the U.S. were established to prevent the rampant corruption exhibited in the Airbus case study. Similar anti-corruption laws do not exist in many of the host countries the U.S. does business with. Host county’s laws and regulations take on different forms especially when power, money and politics are involved, manipulating or creating a new set of rules to benefit their own selfish needs. Savvy sales negotiators, like those at Airbus, seek opportunities through loop holes, off shore accounts and large sums of bribery money, to entice country officials or others with the authority to make purchases to commit to Airbus. A more uniform worldwide approach to international laws needs to be adapted, implemented and more importantly enforced, so all companies involved can conduct fair business practices under the same set of rules.
Some studies show that there are other external factors that promotes rent-seeking. One of these determinants is natural resources. A study covering the period 1980 to 2004 and 124 countries, found that natural resources lead to increase in corruption, especially when the democratic institution is weak (Bhattacharyya and Hodler, 2009, p. 608). This is known as the “resource course.” Instead of the state to use its natural resources to further develop and to create sustainable economy, officials in resource-rich countries tend to seek for bribery when awarding contracts. One of the most famous cases of such malpractices is the Brazil Petrobras scandal. In the $2 billion corruption scandal, 54 people were accused of taking bribes
Bribery is wrong, and it would be almost instinctive to point at the benefits of impartially functioning public servants and incorrupt corporations to our democratic society as justification. However, in this imperfect world where bribery is rife in varying degrees, is it possible to express this notion convincingly? Certainly 'because the UK Bribery Act says so' is far less persuasive to a council planning office in Shanghai than in London, and indeed in compliance with section 7 of the Bribery Act 2010 which relates to commercial offences, it is essential that this question is engaged with on a corporate scale and without assertion through dogma. Accordingly, this essay will argue that elements wrong with bribery are inclusive of both moral and economic considerations. Moreover, in conjunction with international mandates, advent of aggressive legislation such as that of the UK Bribery Act 2010 is representative of global efforts to eliminate bribery. Hence, it follows that bribery can never be considered a normal part of business because it is economically unsustainable in the long term.
The procedure of giving and taking bribe is called ‘corruption’, and almost in all countries around the world it is forbidden; as a result, participating in this procedure leads to some punishments. Kind of punishment may vary depending on countries’ law; therefore, in one country it can be some monetary fine, while in other
In ancient times corruption was a thing to be utterly ashamed of, it’s a totally different story today as corrupt individuals abscond almost every time. Corruption has grown tremendously over the years penetrating into different sectors and taking on different forms. The word “corruption” was first used by Aristotle and then by Cicero who added bribe and abandonment of goods. These days corruption can be found globally, in small and big businesses, the government, corporate businesses and in almost every other sector. It’s like a cancer that keeps spreading and it has eaten deep into the fabric of the society. Many countries are still battling with this malignant subject called corruption on a global level and most of them still haven’t found a way of curbing this disease.
The existence of bribery and unethical behavior is rampant in the world market and may not change overnight. The question of bribery has been distilled in business literature as a question of ethics. In this situation at the airport with the customs officer, it is important to distinguish between business ethics and personal ethics. In a business ethics situation, the Foreign Corruption Practices Act would prohibit offering any bribe to the custom office – for example to free a shipment of goods that was lost in red tape (Pitman & Sanford, 2006). Most companies also have policies against bribery as well. In this situation, however the main issue at hand is that of personal ethics. When in a situation where your company is unknown and there is no business being conducted, normal business ethics and laws (including FCPA) do not apply only personal ethical standards.
In our industry the majority of professionals consider corruption activities such as bribery to obtain planning permission or contracts; billing for unperformed work; production of fraudulent invoices; concealment of bribes; false or exaggerated claims; collusion and cartel activity; inclusion of extra cost to contract claim; cover pricing; employment of illegal workers; cover pricing; and leaking of information to a preferential bidder. Nevertheless are practices that exist in construction, and this is because the people start with small things, and in the end, people will tolerate this behaviour gradually, without realising that his moral scale has been
The first thing the youth could do to help reduce corruption is stop paying bribes and do not allow our friends and family to do so either. We need to be honest with ourselves and try to be loyal to the community we live in. morals and values are developed at home, so if we treat our home, school and environment with respect, corruption will be limited in the future generations. If the youth learns today of the immoral behavior of corruption, the next generation of police officers, government official and people in power will have the skills and values to not commit fraudulent behavior. The can be taught to observe traffic laws, not to throw garbage around, respect elders and the law of the land. Youth can arrange Awareness programs like conferences and seminars in schools to help make society conscious about their acts. (6)