BUSINESS ETHICS

Name: Reuben Browne

Group: 9
Roll No.: 201611233
Section: C

BRIBERY AND CORRUPTION

INTRODUCTION

Bribery and Corruption has long been perceived as a major obstacle for socio-economic development; distorting national and
international economic relations.
Corruption includes any illegitimate use of office, and may include a range of different types of crime. Bribery is limited to the giving
or acceptance of payment of other illegitimate advantages.
The scale of the problem of bribery and corruption is significant at both a corporate and governmental level. It creates a major
distortion of trade as well as undermining the democratic development of emerging markets.

IS GIFTING BRIBERY?

The premise of giving gifts is an ancient way to express gratitude, appreciation and love. Giving in itself is fairly harmless and it is
based upon the philosophy of reciprocity which is commonly articulated by phrases such as what goes around comes around" or
what you sow, you will reap. While gifts are often given as a gesture of goodwill, overly generous business gifts tend to put
pressure on the recipient to extend more than just goodwill to the giver. Thus, not surprisingly, the line between sincere giving and
bribery is becoming increasingly distorted.
Even if we agree that giving to bribe or coerce someone into influencing a decision or outcome is wrong, it is increasingly difficult to
decide where to draw the line between permissible and impermissible actions. Sometimes accepting these gifts and amenities may
be a proper part of a business relationship. In some situations, however, accepting them may be a serious breach of business and
professional ethics, and perhaps even a violation of the law.
Policies and practices on handling gifts and invitations to special events vary from company to company. For some the potential
harm to an organizations credibility is not worth the risk and they ban all gifts to employees, excluding personal gifts from friends
and family. Other organizations accept gifts, but when received, donate them to a non-profit organization. Then there are some
organizations where gifts received must be declared and it is maintained in registers. In other organizations, unsolicited gifts are
shared with all employees. If everyone benefits equally, it may lessen the perception that the gift was intended to influence the
action of a single employee.

IS BRIBING ENFORCEABLE?

Bribery and corruption can sometimes be enforceable and sometimes be voluntarily. Let me explain this topic with examples.
Voluntarily- The examples in which bribery can be defined as voluntary are the examples such as when we go to make our driving
licenses made. Getting a driving license made is a long and process and it usually takes a couple of days to be done if we go through
the proper channels. But many people who want the process to be done quickly and effortlessly use middle-men to get their work
done. These middle-men take extra money from the client and bribes the government employee to expedite the process.
Enforced- An example of forced bribery and corruption is the donation that some parents are made to give to the institution so that
their ward or child gets admission in it.

LAWS GOVERNING CORRUPTION AND BRIBERY

There are many laws at play which see that the organizations and the people involved in bribery and corruption pay for what they
are doing and in doing so also create and example out of them so that such a thing is nor repeated again. The most notable laws that
are governing Corruption and Bribery are:

Prevention of corruption act, 1988 (PCA), is the law associated with corruption and bribery.
The Foreign Corrupt Practices Act of 1977, ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of
persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.

DAMAGE TO THE BRAND AND COMPANY

Overall, corruption reduces efficiency and increases inequality. Estimates show that the cost of corruption equals more than 5% of
global GDP (US$ 2.6 trillion, World Economic Forum) with over US$ 1 trillion paid in bribes each year (World Bank). Engaging in
corrupt practices also creates a very unfavorable business environment by encouraging unfair advantage and anti-competitive
practices. As well as allowing organized crime to flourish, corruption is one of the primary obstacles to the economic development
of a country; it undermines the rule of law, weakens trust in public institutions and challenges democratic principles.

Bribery and Corruption has long been perceived as a major obstacle for socio-economic development; distorting national
and international economic relations
It creates a major distortion of trade as well as undermining the democratic development of emerging markets
Unethical means to get work done
Leads to business crimes

WHAT SHOULD ORGANIZATIONS DO TO MINIZE RISK OF CORRUPTION

Organization, both at home and abroad, should implement anti-corruption policies and practices, including anti-corruption
guidelines, training, internal audit procedures and reporting requirements. The challenge for business is to maintain, review and
develop these measures to respond to changing circumstances.
Some specific measures a business could implement may include:

Establishing an anti-corruption policy;

Ensuring all employees are familiar with the relevant bribery and corruption laws, their roles in the business, their
Responsibilities and the appropriate response to any suspicion of corrupt activity;
Ensuring that agents and partners, who are representing or purporting to represent your business, have adequate and valid
credentials for the activities being undertaken;
Establishing monitoring and reporting requirements for agents and partners representing your business;
Establishing a clear and accessible system for the reporting of any suspicious behavior.