This website uses cookies to ensure you have the best experience. Learn more

Bribery In International Environment Essay

2363 words - 10 pages

Faculty of Law & Management
Graduate School of Management


Lecturer: Richard Underwood

Individual essay

Bribery, giving and taking, is an unfortunate consequence of engaging in international trade but is necessary to pursue an organization’s objective of maximizing return on investment.

Student name: Vu Thi Hoang Yen

Student ID: 15994331

Bribery in international trade has become increasingly popular all over the world. When engaging in international trade, many businesses have to concern about whether bribery is an effective way to reach their target of profits maximization. This essay will discuss about the impact of ...view middle of the document...

The bribes such as monetary, material or social assets were given the government officials of the host countries by foreign companies which were willing to obtain a contract or a project to export or invest in those countries (Hung En-Sung, 2005). Bribery appeared in doing business abroad from mainly firms which belong to emerging economic giants, such as Russia which country was orders the last place on the 2008 Bribery Index, or China with a score of 6.5 out of a very clean 10, just above Russia (Transparency International Report, 2008). From one of the United State Export Strategy Report, it was showed that 80% of all contracts were made decision by bribery. (Scott et al, 2002). Due to its increasing rapidly, the OECD Working Group on Bribery in International Business Transactions, which is invented of the 30 OECD countries and 8 other countries who have accepted to sign the OECD Bribery Convention on Dec 9, 2009, to establish new measures, will emphasize efforts to eradicate, detect, investigate and punish foreign bribery (Kavanagh, S, 2010).

In the fact, bribery has brought frequent benefits to foreign firms that go ground to achieve their targets for three reasons. Firstly, the use of payments helps international companies to win good business opportunities, especially when they operate in the countries that bribery became a part of compensation system. Admittedly, paying bribes may be widespread and accepted as cultural norm in certain countries. For instance, the practice of bribery has traditionally been quite regular in Russia in the mid-1990s (Sanyal,R., 2005). Although most foreign enterprises are aware of the wrong of the bribery, they yet engage in it because simply “everybody do it”. If they do not connect in buying-off, there will be numerous other similar companies who will be ready to do it, as a consequence that they will lose the business opportunity and competitive advantage. A highlight example from BP operating in Angola in 2001 was cited by Bailes,R. (2006). Because of pressure from some domestic firms, such as Sonangol - the Angolan State oil company as well as the presence of other large firms for example Exxon-Mobil, Shell in the offshore oil of Angola, BP have to play their rules, otherwise they will get out. Consequently, BP made decision that they would establish all the payments for Angolan government to obtain the operation trade there. It is easy to understand their announcement that is because if they do not accept, their plan can not simply complete. Some firms who refused to engage in payoffs lost a number of good opportunities and some beneficial contracts. Take the US firms as an example. From 1994 to 2001, it was estimated more than 400 international business contracts which US firms was defected to by other foreign competitors that could use bribery to obtain (Hung En-Sung, 2005). In spite of the fact that US firms could be unlikely to have a weak standard of competitiveness, they resigned going out of...

Other Essays Like Bribery in International Environment

Ethics, Moralty, and Legalities Essay

1009 words - 5 pages members, the City of Salt Lake would have been placed at an even higher disadvantage and a strong competition in the international ring. With this being said, the bid for the Olympic Games could have gone to a country or location where the monies or bribes were indeed paid. In all honesty, I do not see where any argument could have been made. Bribery is bribery, no matter how you look at it. I work for a company that is governed and

Crisis Management Report

3545 words - 15 pages Crisis Management of GlaxoSmithKline PLC’s China Bribery Case Introduction: GlaxoSmithKline PLC (GSK) found itself caught in the crosshairs, when the Chinese government began a high-profile probe into explosive allegations of bribery of doing out kickbacks to government officials, pharmaceutical industry associations and foundations, hospitals and doctors worth more than three million pounds. They reported that some of the techniques used

Observance of Good Corporate Gorvance and Avoidance of Corruption on an Enterprise Effectiveness

2324 words - 10 pages International, 2001). As a result, in an era of globalization, bad corporate governance may facilitate the exporting of bribery practices across the borders, and may therefore undermine the effectiveness of the global anticorruption campaign. Bribery can take place in a wide spectrum of business activities over which some government officials hold discretionary powers. For example, firms may bribe public officials to avoid or reduce tax, to

Int Business

4976 words - 20 pages b. wa c. obligation d. groupism e. devotion (b; difficult; p. 135) 66. What is the purpose of the Foreign Corrupt Practices Act (FCPA)? a. It prohibits the offering of bribes to any foreign government official. b. It protects individuals from human rights abuses. c. It eliminates bribery in international business transactions. d. It inspects working conditions of

International Risks

604 words - 3 pages respect to child labor, bribery, or subsistence pay (University of Phoenix, 2007). The best method of countering these influences is by recalculating cash flows or using risk adjusted discount rates after assessing the political environment (University of Phoenix, 2007). Tax Liability Taxes are another issue to consider in the investment of a foreign market. Capital budgeting uses cash flows that account for after tax dollars. The

Siemens Bribery Scandal

1683 words - 7 pages attempted to usurp the labour unions by weakening the power of the most influential, IG Metall by bribing a competitor. In the international context it was a well known that in emerging economies bribery was common practice. Reinhard Siekaczek; a mid-level accounting executive at Siemens admitted to overseeing an annual $50 million budget for managers and salesmen to use in bribing government officials around the world, including those from

Importance of Adapting Corporate Culture and Ethic in Indonesia for the Multinational Companies

2237 words - 9 pages Fade Achnaf (25364561) Assignment 1 International marketing Importance of Adapting Corporate Culture and Ethic in Indonesia for The Multinational Companies Culture is a subjective matters because it is unique for every person, Fatehi (2008) state that culture are people’s system of knowledge and standard of perceive , behave and act. Culture keep evolving and getting bigger from time to time. Corporate culture impact behavior of employee

Global Political Corruption: Causes, Effects And Remedies

1344 words - 6 pages Corruption is a cancer that spreads rapidly all over the body. It’s a big hurdle in the prosperity of the nations. Due to concrete measures in Australia, Canada and few European countries corruption has dropped extensively, nevertheless in developing and underdeveloped countries (especially Afghanistan and Somalia) it is still a critical problem. According to the Global Corruption Barometer 2013 released by Transparency international, a

Cross Cultural Differences

1092 words - 5 pages culture, one learns more about the people, the targeted market, which ensures the success of a business. As one enters a new market, they realize the vast cultural differences. As more organizations are conducting business in different environments, it is inevitable to notice the cultural clashes (Jordan, 2003:98), such as the status of women in a workplace. The website “Foreign Affairs and International Trade Canada” states that the equality of

Cultural Awareness Plan Ii

875 words - 4 pages Cultural Awareness Plan II: Training Plan Kemberly Watkins MGT/538 Managing in a Cross-Cultural Environment February 2, 2015 David Barlage University of Phoenix Material Cultural Awareness Plan – Template |Cultural Awareness Goals |The strategic goals of Coca- Cola are the foundation of the training guide : According to "Our Company" (2014), " To continue to

Emerging Business Ethical Issues Joseph Freberg

554 words - 3 pages 1. What are Joseph’s ethical problems? a. Joseph’s ethical problems an employee paying off or giving “kickbacks” to some of his buyers. This could be considered a type of bribery, the practice of offering something in order to gain an illicit advantage, called “Facilitation Payments” payments made to obtain or retain business. Joseph also feels he has issues with his boss in what he perceived to be a “hostile work environment”. For a hostile

Related Papers

Bribery And Corruption In International Trade

1536 words - 7 pages Bribery and corruption is a way of life in many countries. These practices affect the way international business is regularly conducted. However, in most of these countries, it is illegal to offer or receive bribes or engage in corrupt practices. Yet corrupt practices are a part of the ‘culture’ of ‘doing businesses. Unless companies ‘conform’ to such practices, in many cases, international business cannot be transacted. This paper will attempt

Corruption And Bribery Essay

1801 words - 8 pages to person, company to company, or even country to country and it is considered a crime in most parts of the world. Many would agree that there is a lot of bribery and corruption in modern day politics as well as International companies, but I will not be going into that for it is another huge topic. “Bribery and corruption are major obstacles to socio-economic development and distort national and international economic relations.” (IBE) This

Bribery & Intl Mgmt Essay

1556 words - 7 pages not want to break the laws of our own country, we have to realistically consider that some forms of bribery are part and parcel of doing business with our international clients and partners. Business leaders and managers must sometimes develop creative ways in which to be successful in a culture that finds bribery acceptable without violating the home country’s or company’s laws and regulations. I believe that there are several options

Social Marketing Campaign Essay

2281 words - 10 pages elaborating the citizen role in this issue such as reporting corruption whenever seen to the specialized authorities. While on the long run, the intended impact is to eliminate the pervasive corruption in Egypt and to increase the Egyptian transparency within the society. What is the campaign focus? The focus of the campaign is to explain and elaborate the bribery phenomenon in Egypt in terms of the seriousness of the problem, reasons and how to