Introduction
Bribery and kickbacks are very popular ways of “doing business” in countries all over the world, and some more than others. Laws have been created to try and reduce the amount of bribery that takes place. The laws include punishment such as fines and jail time as a consequence for the corruption. However, at the end of the day, it is up to ethics and morals in the person making the decision to keep a bribe from interfering in both national and international situations including politics, sports, and business.
The Idea in a Nutshell
“Every man has his price” is a popular saying that originated with Sir Robert Walpole, the first Earl of Orford. This concept relates to bribery in that a decision can be purchased if enough money is involved. Some people will not even consider making a decision in the favor of anything that does not involve some form of compensation being paid to the decision-maker.
The Top 10 Things You Need to Know About Bribery and Kickbacks
- What is Bribery?
(n.) Bribery is the practice by which a person who can take decision or action on behalf of others by virtue of his authority or position is influenced by paying or offering monetary benefits for influencing him to take an action or decision, which he would not have done otherwise (LEC.)
- History of Bribery
History shows that the word bribe originated in medieval French times and it meant “a piece of bread”. Through misuses and misconceptions of the word bribe, it eventually developed a meaning of “theft” or “stealing”. When bribery was used in English form in the fourteenth century, the briber referred to the “person getting the money” and “doing it by force.” It wasn’t until the sixteenth century that the briber was the person submitting a request to another in hopes to persuade their decision by giving them something of value. This is the use of bribery that has held its meaning and that we know today (Quinion, 1997).
- What about Bribery as a Gift?
A gift is something of value given without the expectation of return; a bribe is the same thing given in the hope of influence or benefit. Because it is not always obvious the intention of the giver, all elected and appointed federal, state, and local officials are governed by policies restricting gifts. In some situations, a gift can only be accepted if it is under a certain amount and in other situations; it just needs to be reported. The guidelines vary by location and by differences in each legislature’s perception of when a gift becomes a bribe.
- Bribery Act (1962)
Section 201 of the act makes it a crime to commit:
- An act of bribery which is punishable by up to fifteen years in prison
- A less serious offense of payment or receipt of an official gratuity, or a tip for some kind of service which is punishable by up to two years in prison and a fine.
Both offenses require proof that something of value was requested, offered, or given to a federal public official. Unlike the offence of giving a gratuity, the offence of bribery requires that something of value be given “in return for” influence over an official act and that such thing be given or received with “corrupt” intent. The offence of giving a gratuity requires merely that something be given “for or because of” an official act (Green, 2006).
- FCPA
The U.S. Foreign Corrupt Practices Act of 1977 (”FCPA”) generally prohibits U.S. companies and citizens, foreign companies listed on a U.S. stock exchange, or any person acting while in the United States, from corruptly paying or offering to pay, directly or indirectly, money or anything of value to a foreign official to obtain or retain business. The FCPA also requires “issuers” (any company including foreign companies) with securities traded on a U.S. exchange or otherwise required to file periodic reports with the Securities and Exchange Commission (“SEC”) to keep books and records that accurately reflect business transactions and to maintain effective internal controls (Foley & Lardner LLP.)
- Ethics and Bribery
All business, political and sports decisions should be made on the merit of the case and what is best in that situation, not based on how nice of a gift the decision maker has received. Whether or not the final decision is actually influenced by accepting the gift, it still appears to be the reason. Over time if a “gift” or “bribe” is accepted, it will hinder the respect and credibility of the person who has the responsibility of making the decision.
- Lead Bribe List
As of 2008:
Countries who firms are most likely to pay bribes:
- Russia
- China
- Mexico
- India
- Brazil
- Italy
Countries whose firms are least likely to pay bribes:
- Belgium
- Canada
- Netherlands
- Switzerland
- Germany
- Japan
- UK
(BBC News)
- Businesses and Bribery
Combing business and bribery is a touchy field to play in. A businessperson’s morals and values are going to be the determining factor on if a bribe will be accepted or declined. Just remember: “You do the crime, you pay the time.”
- Sports and Bribery
1.) Referees and scoring judges may be offered money, gifts, or other compensation to guarantee a specific outcome in an athletic or other sports competition.
2.) Bribes may be offered by cities in order to secure athletic franchises, or even competitions.
3.) Elements of the game may be tampered with – the classic example being from horse racing, where a groom or other person with access to the horses before the race may be bribed to over-feed an animal, or even administer a sedative or amphetamine.
4.) Another type of bribery done for financial gain through gambling is to bet against a clear favorite, and ensure that the favorite has an “off day”, or attempt to “hop up” a long shot in an attempt to collect big winnings by betting on the heavy odds against it
(Wikipedia-Sports.)
- International Bribery
It can be difficult for a U.S. businessperson to do business with foreign companies when it comes to giving gifts or “bribes.” Although the U.S. has very strict policies on what is acceptable for someone to accept as a “gift,” a lot of foreign countries have much more leniency and even use bribery in their daily business transactions. It would be in the best interest of both parties to have a thorough understanding of the laws and regulations so that lines aren’t crossed and everything is done is a respectful manner.
The Video Lounge
The video is about a woman whose whole life changes by the corrupt decisions of a judge who is in a powerful decision-making position. The judge in this case, is not a man of morals and values and his selfish decision took away something from a mother that money could never buy- the life of her son.
LINK:
http://www.CNN.com/video/data/2.0/video/bestoftv/2011/02/21/exp.am.Carroll.ciavarella.CNN.html
My Take
Bribery is definitely something that is still very prevalent in today’s society. Some situations aren’t as obvious as others, but it is widespread practice. I think it is important for people to be aware of what bribery really is and the way it can be presented, so those who do not want to be apart of it, can avoid it.
References
Allen, M. (2000, October). Here Comes The Bribe. Retrieved February 2011, from BNET website: http://findarticles.com/p/articles/mi_m0DTI/is_10_28/AI_66239731/
Bribery. (n.d.). Retrieved February 2011, from Wikipedia website: http://en.wikipedia.org/wiki/Bribery
Bribery. (n.d.). Retrieved February 2011, from Legal-Explanations website: http://www.legal-explanations.com/definitions/bribery.htm
The FCPA Explained. (n.d.). Retrieved February 2011, from Foley & Lardner LLP website: http://www.fcpaenforcement.com/explained/explained.asp
Gifts and Bribes. (2006, June). Retrieved February 2011, from Markkula Center for Applied Ethics website: http://www.scu.edu/ethics/practicing/focusareas/government_ethics/introduction/gifts.html
Green, S. (2006). Bribery Act (1962). Retrieved February 2011, from eNotes website: http://www.enotes.com/major-acts-congress/bribery-act
Quinion, M. (1997, December 13). Bribery. Retrieved February 2011, from World Wide Words website: http://www.worldwidewords.org/topicalwords/tw-bri1.htm
Russian Firm’s lead bribe list. (2008, December 9). Retrieved February 2011, from BBC News website: http://news.BBC.co.uk/2/hi/7773069.stm
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Contact Information
To contact the author of “The Top 10 Things You Need to Know About Bribery and Kickbacks,” please email Colette Farnet at CFarnet@gmail.com.
About the Publisher
David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:
- Management Concepts (http://toptenmanagement.blogspot.com/)
- Book Reviews (http://wyld-about-books.blogspot.com/) and
- Travel and International Foods (http://wyld-about-food.blogspot.com/).
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