BRIBERY

IN BUSINESS
G7 – CA2 [MGN569]

11306219 Pilli John Kiran Murthy RQ1303B45

11304237 Kaushlesh Sharma RQ1303B46
11304272 Divya Dioundi RQ1303B47
11303898 Harshvardhan Singh Khanna RQ1303B48
11303810 Sapna Wadhwa RQ1303B49
 Bribery in Business
Key issues in the case
Bribery and corruption has long been perceived as a major obstacle for socio-economic
development, distorting national and international economic relations.
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.
The problems in this case which are occurring because of the bribery and corruption are these…
In this case it is stated that it is been observed by the OECD that bribery raises serious moral and
political concerns, undermines good governance and economic development, and distorts
international competitive conditions.
The United Nations and Transparency International both have argued on this topic of “bribery in
business” that bribery provides an incentives for over-regulation and over-bureaucratisation of
procedures to enable more people to benefit from graft, resulting lost time and a higher cost of
doing business.
The other problem that occur is negative economic consequences such as :
1. Distortion of funds, illegal approaches, economic corruptions, biased policies in
government.
2. Finding short-cut to escape legal procedure and time consuming activities at the benefit
of both the parties.
3. Diversion of resources to inefficient uses for the benefit of some individual or group of
people.
4. Increases gap between rich and poor in developing nations.
5. Illegal self enrichment to perform unethical and/or unlawful activities.
6. Obstacles for ethical operations in public/private/international levels.
7. Loss of tax revenues.
8. Quality of contracted works.
9. Loss of investor confidence.
10. It creates economic distortions and distributional inequities.

The major problem that has stated in this case is due to bribery in government procurement the
amount lost is at least US $400 billion per year worldwide.
Moreover, due to bribery is thought to have a damaging impact on democratic processes and social
stability. The other problem that have been observed is bribery undermines public and business
confidence, breed cynicism, increases inefficiency, and leads to other crimes such as “money
laundering”.
The problems that poor people have to suffer because of this bribery in because as money spent
on bribes can reduce the resources for shelter food water health and education. They have suffered
risk violence and injuries.

Analysis of key issues

1. because it permits illegitimate payments to influence important decisions and actions
The intention of the offer is to influence a foreign public official to utilise their position to provide
a business advantage (including the provision of new business or the retention of old business) to
which the individual or corporation is not legitimately entitled.
2. finding shortcut to escape legal procedures and time consuming activities at the benefit of both
the parties :-
Conflict can be expressed in numerous ways such as insults, noncooperation, bullying and anger.
So to remove all these difficulties in life of business ,some people allow themselves to get involved
in the case of bribery so this shortcut method will always help them to communicate in a ease
,which lead them to get there problem solved in shorter period of time . hence what they do –they
dig a hole for themselves to get buried in it one day.

3. diversion of resources-
step towards combatting unethical financial action in businesses. It has helped discourage criminal
behaviour and raise people’s awareness about corporate bribery, which one person couldn’t find
the way then they opt for a decision which can Combatting unethical practices such as bribery is a
matter of changing the way people think.

4. Poor people have to suffer because of this bribery in because as money spent on bribes can
reduce the resources for shelter food water health and education.To the extent that corruption
undermines revenue, it adversely affects government efforts to reduce poverty. Money that leaks
out of the budget because of corruption will not be available to lighten the burden of the poor. Of
course, corruption also undermines the case of those who argue that foreign aid can be an important
element of the fight against global poverty.

5. illegal self enrichment to perform unethical and or unlawfull activities :-

For the purpose of influencing the recipient to favour the giver in violation of other duty to exercise
independent judgment on the principal’s behalf which resulting in a personal benefit this reflects
the variety of illegal dilemma.
6. obstacles for ethical operations in public /private levels .
What are those complexities which held in between the situations that comprises ethical activities
. which stands with the pattern of obstacles which will never going to be appreciated .ethics
addresses the fundamental premise of a public administrator's duty. Decisions are based upon
ethical principles, which are the perception of what the general public would view as correct. They
are also expected to maintain openness in their workings to ensure that they are operating within
the public's perception of what is "right." This concept of ethic

7. Developing countries are typically unable to generate sufficient amount of revenue from
taxation because these countries face a number of institutional problems in the process of revenue
generation. One of the main problems is corruption in tax administration. So, The main objective
of these is to increase the efficiency of tax administrations, specifically by reducing corruption and
tax evasion.
8. Public works contracts are big business Opportunities for bribery also arise in the delivery of
development
some work done by public in case of bribery are more in concern of fast doing projects ,so the
another person who took a contract of doing quality work or some other kind of deals they
assigned can get a favour of additional money , so that deal can make money in terms of
contracted quality work .

9. loss of investor confidence willingness to engage in the investment opportunities and

associated intermediation channels available to them based on their perception of risk and return.
A loss of welfare can arise from a deviation between investor trust and the true level of
protections against expropriations or between investor optimism and the true level of
“fundamental” risk and return. For example- investors may conduct insufficient due diligence or
forego beneficial investments as a result of such distortions.

10. Market distortions create market failures, which is not an economically ideal
situation. Market distortions are often a by product of government policies that aim to protect
and raise the general well-being of all market participants.

Solution to issues

1. Effective enforcement of anti-corruption laws

Majority of employees are not aware of anti-bribery compliance program; this clearly show the
inefficiency in implementing the law in work environment. Most of the times do to uninformed
rules and regulations of the company, many employees get involved in performing activities not
binding the company law. So, it is important to keep employees up to date about the changes in
policies, regularly, and also to take the right action against employees performing illegal activities
to make everyone aware about the anti-corruption policies in company.
2. Transparency and Right to Information.

Promoting transparency in business operations throughout the nation will keep
companies away from any kind of unlawful activities. Right to Information becomes a
handy tool for media and other responsible citizens to question about any suspicious
operation found in the company and keeps company liable for performing any malicious
activity.

3. Special task force to deal complaints against corruption.

Dedicated wing in police department to deal with complaints registered in terms of
bribery or any other kind of illegal activity against any company or individual, will
definitely play an important role in gradually reducing corruption and keep country safe
from misuse of resources. Giving jobs to people who less deserves over a qualified person
will hamper the performance of the company and spoils the country’s financial status.



4. Closing loopholes in law.

Unless and until a country have strong law to bind companies to perform ethical activities,
it becomes hard and almost impossible to control bribery and other illegal activities in
corporate world. Because in corporate league, all the players are in competition with one
another and it becomes important for each one of them to take advantage of any
available loophole to make profit and win the race. Closing all loopholes in law has high
priority to solve this issue.

5. Special helpline number to inform about bribery.

A dedicated phone number working round the clock just to handles calls, from all corners
of the country, about illegal activities performed by government or private institutions
will be welcoming change towards corruption free society. With the help of this phone
number every one will get power to inform about any bribery being asked in any company
for a genuine work. N need to give any additional information to register a complaint as
phone number itself has enough information to track the location and caller information.

6. Digitalization of business operations and artificial intelligence.

Technology is growing at a rapid pace and has become a key partner in solving any kind
of problem in today’s scenario. By digitalizing all operations involved in a company’s
business, it becomes difficult to expect any kind of personal enrichment to take decision
with any additional power given to an employee. As artificial intelligence works
throughout the clock with accuracy, it will keep all employees under surveillance and
restricts them from performing any unethical activity.
7. Computerized auditing and carbon footprints

Along with internal and external auditing, if company employees a well designed software
to audit files at regular intervals then it becomes easy for them to understand how any kind
of illegal entries are being punched by employees to take a strict action against them and
also helps to have proof with digital carbon footprints. These carbon prints data is important
in identifying the corrupted employee among thousands of employees working in an
organization.

8. Floating information about anti-corruption policies

Sending information to all employees through various ways like noticeboards, emails, etc.
or even discussing in formal and informal meetings will serve the purpose. These activities
will make employees aware about the changes in policies and remind the existing policies.
Doing this regularly will keep employees bind to the predefined rules and regulations to
stick with organizations culture.

9. Platform to share opinion, feedback and complaints.

Taking feedback from employees on various policies will help company to move in right
direction. Sum of all employees’ opinion results in formulating the optimized method to
deal any situation. This flexibility will bring in new points to control corruption. Scope to
register complaints against other employee will keep everyone under check and restricts
them from being lavish with allocated resources and authority.

10. Strict actions against corruption.

Action speaks better words. Last but not least, strict actions against any unethical activities
in company will be a constant reminder for employees and keep them away taking any
chance to perform illegal activities. With above mentioned methodologies like artificial
intelligence, digital carbon footprints, online records etc. it is easy to track the culprit but
punishment is important to keep other away from that kind of thinking. Hence, taking strict
actions against the culprits will reduce corruption in company.
Plagiarism – 6.3%