Bribery is a Practice in Contemporary Business

This study explores the impact of bribery in contemporary business and its elimination for maintaining the sustainability of business organizations. It includes a literature review on ethics and corruption, the Foreign Corrupt Practices Act, key models, corporate integrity system and accountability, commercial bribery, and the importance of eliminating corruption for sustainability.

Running head: BRIBERY IS A PRACTICE IN CONTEMPORARY BUSINESS
Title: BRIBERY IS A PRACTICE IN CONTEMPORARY BUSINESS
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Contents
Introduction......................................................................................................................................2
Literature Review............................................................................................................................2
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11

2LAW AND ETHICS
Introduction
This assessment unit will undertake the detailed study over the several bribery practices and
influential impact in the context of contemporary business. Many studies have been proposed
that explains the significant impact of briberies as practice towards corruption in business
organization hampering the ethical reputation of the company and country as a whole. Bribery
under practice towards corruption defined as the act of receiving or providing some values in
exchange for types of actions or influences in returns, that recipient could otherwise not vary. In
a business, context bribery is often regarded as a gift that influences the conduct of recipient
provided in the form of goods, money, rights of action, preferment, property, privilege,
emoluments, advantages etc.
The report will also represent the literature review based on several peer-review journals,
textbooks and online resources to provide evidence to the information of bribery practices that
have increased in the past few decades due to increased behavioural changes of individual
managers and individuals under ethical and unethical attitudes. Analysis of the relation between
ethics and corruption, decision making under corruption, its key models, the procedure of
organizations towards maintaining cooperate integrity and accountability along with descriptive
knowledge over commercial bribery and elimination for maintaining the sustainability of
business organizations will also be resented.
Literature Review
Ethics and Corruption

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Atan, Alam & Said (2017) defines that corruption is a method of obtaining or offering
advantages using illegitimate, inconsistent or immoral with one's rights or duty of others. The
modern understanding of organizations ethics notes that culturally accepted values and norms are
not always ethical choices. Cuervo-Cazurra, (2016) argues that in some culture conflicts with
business practices globally in areas of gift giving has developed into bribery, a form of
corruption. Paying bribes has progressively become common in several countries contributing it
a form of grease payments where small inducements intended to expedite transactions and
decisions. According to a rating of CPI or Corruption Perception Index, countries like Denmark,
New Zealand, Sweden and Singapore comes at lowest of corruption in regard to bribery where
Most of African nation, Myanmar an Russia belongs to the highest level of corruption (Donchev
& Ujhelyi 2014). Worrying facts is that many people have been reported paying bribes to a
higher authority even like judiciary for getting permits and services in the past five decades. Gift
offering in the global business environment is used to pay or establish respect to relationships.
Cuervo-Cazurra, (2016) opinionated that bribery of other hand has become the more common
practice of benefiting oneself, with no or little benefit to the company. These are paid about
winning of business deals. Bribery, commonly in the form of cash payments have reached the
high proportion in many countries where even locals are expressing disgust with corruption and
its impact on regular life for consumers and business. In western countries towards controlling
frequent consequences of corruption, some industries (e.g. Finance) has set legal guidelines
restricting values of gifts maximum of $100 to avoid the perception of the individual that sees
the connection in business as informal and with a negative connotation. Langseth, (2016)
concludes that a business firm operating their functions globally found engaged in questionable
business gifts in the form of bribery intension if caught are fined and faces sanction. But for

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many parts, organizations continue with usual businesses. Boles, (2014) adds that changing
cultural activity of gift giving is an evolving process which will take time, more transparency and
government attention in awarding worldwide business contacts.
The Foreign Corrupt Practices Act (FCPA)
FCPA or Foreign Corrupt Practices which was officially instituted on 1977 prohibits accounting
offences and bribery to secure favours from several foreign officials or tempt them to act in
conflict to their professional roles and responsibility (Perlman & Sykes, 2018). Every business
organization with security listed in the United States legally responsible for confirming
subsidiary or personnel branches in foreign nations must be FCPA compliant. Several nations
globally came across common legislation and joined the international coalition for addressing
corporate bribery. Giorgini et al. (2015) add that bribing professional or foreign official poses
myriad of ethical and legal risks that include unfair means of compliant business gaining un-
advantage with skewing market, assets abroad, limiting customer’s options and adversely
impacting foreign and political policies in business context. Park (2014) argues that companies
engaged in bribery actions could excuse similar practices and broad in several countries globally,
where the refusal of engagement in global business context could hinder and hamper business
prospects of the organization. The financial advantages that organization seek while conducting
business in nations with comparatively lax worker laws and several perceived legislative
loopholes could outweigh their ethical issues. Excuses are not compromised by justice
departments under FCPA. American associate of justice elaborates: congress will not take “cost
of processing business” abroad, neither proper way that edge out the competition in the global
market. However, nations taking the risk have to face federal lawsuits as ultimate consequences.
The foreign corrupt practices act strictly informs the corporations that if they are not finding

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ways to conduct the operation of business legally than it must not conduct its businesses at or
there will be fines alleged for violation of FCPA, real examples includes the case of Siemens,
Hewlett-Packard and Goodyear (Perlman & Sykes, 2018).
Key to model
Figure 1: Corruption Decision-making Model
(Source: Bruijl, 2017)
Torsello & Venard (2016) says that difficulty of structuring anti-corruption commitment lies
broadly on describing and identifying transactions that are proscribed- evolving a workable
mental model what is not and what is accepted. Rothstein & Tannenberg (2015) adds that
connotation of word “corruption and bribery” includes common idea of unethical and illegal
transfer or transaction of resources towards developing benefited norm for conducting business
for moving forwards to operational description than general characteristics. The author proposes

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that challenge of devaluating operational description of corruptions could take the organization
into “grey areas” in which boundary between wrong and right are difficult to draw clearly.
Passive corruption- A circumstances where decision-maker seems to have not any plan or
intention, but approaches for corrupt or bribery act (Toth, 2014). This could befall under-
response of two kind-Type A and Type B.
Type A: Act or payment of corruption which critically affects “basic human rights, issues or
environment of sustainable development”. Universal Declaration by UNs of human rights could
be used as a checklist to defining rights that could be violated. Similarly, a checklist of problems
focusing on sustainable and environmental development could be made (Monea, 2016). Another
list could be made focusing on peculiar concerns to stakeholders groups relevant to the company.
Type B: Activity of corruption and payments would not affect “basic human rights, issues of the
environment or sustainable development”.
Active corruption- A circumstances in which decision-makers insinuates, design, creates a
condition for paying a bribe or start corruption act. The response must always conclude to “No.”
Corrupt transactions- It covers all kinds of transactions that mainly not monetary bribes but are
desired to dispense functions, discretion or favours mater of quid pro quo. Classification under
Type B and Type A would determine “Yes” or “NO” response.
Facilitating payments- It includes the payments demanded by corrupt person and system for
dispensing individual discretionary powers (Langseth, 2016). This could include petty demands
of payments by low-level functionaries in public offices. Facilitated payments must be

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investigated against criteria noted under Type B and Type payments where Type A is classified
as answer “NO” and Type B as “Yes.”
Extortion- It indicates payment and activity that is undertaken to grave compulsion where lives
of organization personnel are in danger or at risk. This may cause a threat to business
organizations property and effective functioning of business when rules and regulation or laws
fail to be capable of facilitating protection.
Yes,*- Directs conditional ‘Yes’, that implies payments that be made only if payments are
unavoidable under presented situations concluding to Type B payments. Yes, word implies that
stakeholder’s conscious global company will support corruption and anti-bribery initiative of
NGO’s and International departments/body (Bruijl, 2017). Under which they could take sincere
attempts at bringing systematic changes. This concept is common in deal with negative side-
effect under “principle of double effect.”
No- Work ‘No’ indicates no answer to form of payments and active corruption of Type A.
Corporate Integrity System and Accountability
According to Said et al. 2015 changing economic and political environments around the worked
have let to increase of concern for fraudulent activities. Frauds not only includes moral problems
but also barriers for nations prosperity by distorting people policies, undermine better
governance, hurting economic development and leading to misallocation of current resources.
Doig, 2013 adds that for reducing these consequences, accountability issues have been raised in
organizations to put corporate integrity system inadequate places to develop accountability
outcome. Said & Omar, 2014 argues that accountability may avert abuse and frauds of power,
where commitment from legislative or governments essential for accountability of mechanisms

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that amplifies ethical activities and confirms implementation of an adequate process consisting
openness to scrutiny and documentation. In competing with integrality, the author De George;
Werhane (2015) has worked on five themes. One of it indicates that unethical and ethical
behaviors of organizations are because of individual managers and individual’s attitudes as they
are only involve in an unethical manner and not corporation itself. Cuervo-Cazurra, (2016)
argues that ethical problems in global business would occur at several levels like on individual
level, other organization and corporate or national level or internationally where every issue must
be examined in appropriate context. Ethical issue at any level in business could be dealt with
unless strong institutional background called “rule of law” be constraint for unethical attitudes
towards effectively promoting fair competition, the balanced economic power of corporate with
the strong global organization and government body. Werhane (2015) studies that some leeway
for actions in some nations could be provided as they develop free-market structure and other
case where no wrong could be tolerated, indicating to an example where American organization
are prohibited from extortion and bribery legally and morally. But in the case of Russia, bribery
is part of the business process, and it becomes difficult for Russian businesspersons to survive in
the marketplace without paying a bribe or replying to extortion for successful business operation.
Accountability in context could amplify the efficiency of budgeting, management, politics and
innovation in public sector companies especially in Australian business firms increasing
democracy, service and openness efficiency.
Commercial Bribery
Commercial bribery significantly takes place in private sector organization including the passing
of payments to staffs or another agent in favours of some special treatments. Boles (2014) adds
that bribers ‘ buy influence’ in the commercial sector and bribe agents under violating their

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principle of trust for their gain. Both individuals gather common economic incentives from
participation in bribery arrangements. Rendleman (2017) argues that these parties mainly
transpires commercial transition in which individual company forms secret payments to staffs of
other organization for that staff's personal profit and staffs in return directs operations of the
business to bribing organization and to the exclusion of another company. Research article
provides information that this kind of arrangements concludes with bribing organization
obtaining business contact with Staffs Company. Ross (2017) adds that Commentators and
courts have opined such arrangements are seen commonplace and are rampant in several industry
segments. Business bribery causes economic harm to staffs. Buyer’s payments to suppliers for
the product could skyrocket over products fair market price.
Eliminating corruption is crucial to sustainability
Ethical activities are a critical method of sustainability and are an important process towards
eliminating corruption because it is illegal and distorts the free market and fair competition.
Kötter (2014) opinionated that bribery in context to corruption hinders economic and social
growth delaying the emergence of growing economy and process thriving democracy based on
better governance and rule of legislative. UN Convention against Corruption, Bribery
Convention OECD and business organizations are participating in voluntary initiatives like
extractive Industry Transparency and Global Compact initiatives towards eliminating situations
of corruption and having sustainable growth of business in the economy of the country. National
legislative as 1998 US Foreign Corrupt Practice Act along with the UK Bribery Act 2010,
punishes the act of corruption regardless of place in occurs in the world (O’Connell, 2015).

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Conclusion
It can be significantly concluded from the study that act of Bribery give rise to corruption in
countries worldwide ultimately affecting the growth of business and its sustainability. Tough
commercial bribery is prevalent in organizations it is often informed affecting society where
people suffer unreasonable hikes in product market prices. To avoid certain situations,
jurisdiction must not turn a blind eye to bribery permitting acceptance it in business practices.
Australian states must unify anti-commercial bribery government responses for setting a proper
level of felony punishments and deter private bodies from engaging in crimes.

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Reference List
Atan, R., Alam, M. M., & Said, J. (2017). Practices of corporate integrity and accountability of
non-profit organizations in Malaysia. International Journal of Social Economics, 44(12),
2271-2286.
Boles, J. (2014). Examining the Lax Treatment of Commercial Bribery in the U nited S tates: A
Prescription for Reform. American Business Law Journal, 51(1), 119-174.
Bruijl, G. H. T. (2017). Blue Ocean Versus Competitive Strategy: A Systematic Approach for an
Afghan NGO.
Cuervo-Cazurra, A. (2016). Corruption in international business. Journal of World
Business, 51(1), 35-49.
Doig, A. (2013). Fraud. Willan.
Donchev, D., & Ujhelyi, G. (2014). What do corruption indices measure?. Economics &
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Devenport, L. D. (2015). Researcher perceptions of ethical guidelines and codes of
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Kötter, M. J. (2014). The common man vs. corruption or the globalized new middle class vs. the
political? (Doctoral dissertation, uniwien).
Langseth, P. (2016). Measuring corruption. In Measuring corruption (pp. 23-60). Routledge.

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Monea, A. P. (2016). Numerical Mediation and American Governmentality.
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business. Governance Directions, 67(5), 311.
Park, S. K. (2014). Targeted social transparency as global corporate strategy. Nw. J. Int'l L. &
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Toth, M. (2014). A Few Remarks about Criminal Corruption in Hungary. JE-Eur. Crim. L., 77.

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Werhane, P. H. (2015). Competing with integrity: Richard De George and the ethics of global
business. Journal of Business Ethics, 127(4), 737-742.