Bribery – the Dilemma

Everyday U.S. managers in developing countries face the dilemma of furthering their business concerns in countries such as India, China, Russia and Mexico where bribery is commonplace while at the same time trying to ensure that they do not violate their companies code of conduct or worse the government’s Foreign Corrupt Practices Act (FCPA). It is a fine line they walk. This paper will help those managers by explaining what bribery is, why it is thought to be an issue, show recently where companies have bribed and been caught as well as offer suggestions that will enable the U.S. manager in Mexico to accomplish what bribery accomplishes but is not unethical or illegal or in violation of a company policy that prohibits bribery. Bribery is the act of accepting or offering something of value where the person who accepts the bribe is expected to perform a service which goes beyond his or her normal job description. To be considered a bribe, the object of value must be offered and accepted with the understanding that the person who accepts the bribe will be doing something in return. Managers must also understand the cultural differences of the countries they are doing business in because they can sometimes lead to confusion. In some cultures offering payment for a service may be considered a bribe and in others, a failure to do so would be construed as offensive. For example, in the Middle East they have the concept of baksheesh which is from a Persian word meaning “present” and it is an integral part of daily life. Government employees use baksheesh to support their minimal government income and they are quite open about their requests and will quote customers a direct amount that it will cost to say pass through customs without inspection, get through a heavily controlled border or receive some other service. (What is Baksheesh?)
A manager whose business is expanding into a developing country where bribery is the norm must be careful to ensure that the

References: Some things in Mexico seem to never change: The Bits is Alive and Well In Mexico. (2006). Retrieved 05 25, 2012, from Mexicomatters: www.mexicomatters.net Cavico, F. J., & Mujtaba, B. G. (2010). Baksheesh or Bribe: Payments to Government Officials and the Foreign Corrupt Practices Act. Retrieved 05 26, 2012, from Journal of Business Studies Quarterly: jbsq.org Cultural Dimension - Mexico. (n.d.). Retrieved 06 02, 2012, from Geert Hofstede: geert-hofstede.com Josh. (2012, 05 07). Should You Pay a Bribe? Retrieved 05 29, 2012, from Develop Economies: developeconomies.com Powell, B. (2012, 04 30). Chicago Tribune 's Steve Chapman Defends Bribery and Corporate Corruption. Retrieved 05 25, 2012, from MediaMatters for America: mediamatters.org Saee, J. (2009). Ethical Challenges Confronting Entrepreneurs withing Contemporary Global Economy: In Search of a New World Ethics. Retrieved 05 25, 2012, from Association of Management: www.aom-iaom.org What is Baksheesh? (n.d.). Retrieved 05 29, 2012, from wiseGEEK: www.wisegeek.com