EBC 4 Analytical Report

Student:
Giedre
IBMS

Kartents Street 356
2758 Kiev
Ukraine

Pavlo Zhuk
Sun Boulevard 52
785589 Redwoods
California

Dear Mr. Zhuk,

In response to your request, I am providing you with the report concerning the importance of business ethics and about the role of the bribery in third world counties, in this case Ukraine. In this report I will analyse the situation and advise you on how to proceed with the matter.

The main idea of this report is to investigate whether it is worth fighting the bribery and what the possible ways of doing that are. The crucial problem here is the briber. Everyday businesses in third world countries and post-soviet countries confront bribery which contains extra payments for the same services or products.

As of now, the business "Customer Strategy Solutions" exists of the well doing headquarters based in the US and the new outsourced office in Kiev, Ukraine. The new office in Kiev had recently a visit from the Ukraine Tax Authority which claimed that the business has not filed up 5 of 17 schedules which could result in some serious consequences or lead to a shutdown of the business. Because of a hint from one of the UTA agents, it is commonly acceptable to reach an agreement between the two parties. The main issue is whether to pay the bribe or to fight the local authorities and their ways of doing business. In addition, you have just opened a new office in Kiev. As a result, you need to be careful with the ways you do business in the Ukraine and need to get used to local business behaviour. As the head of B2B consultants, I have dealt with many cases involving business procedures involving bribery and corruption in the Ukraine.

Everyday businesses in third world countries and post-soviet countries confront bribery which contains extra payments for the same services or products. This increases the possibility of getting things done in the way you want them to be done. However, it is likely that the amount of money spend on bribes will increase with time. As result, it would be wise to rethink making a bribe in a country you just started doing business since you will spend a considerable amount of money in the first place. Therefore, in this report I will examine if bribery is a good way to overcome the official barriers and how it will influence your way of doing business. I am confident that I can assist you in choosing the right decision investment for your company and give you a well-balanced recommendation.

Firstly, the main issue of bribery is the feeling that it gives you more rights than you would have had. This gives an illusion that bribery is acceptable in various stages of people’s life since it improves the quality of life. In the case of ‘’Customer Strategy Solution”, the additional payments helped to get the business running faster. This means that it is reasonable to pay double or even more for things that had to be done either way. In some countries it gets to the point that it is not acceptable anymore not to pay bribes. As Roman Morkovin, a lecturer at the Higher School of Economics told The Moscow News: “Bribery is like that: the person who doesn’t pay a bribe is at a disadvantage to those who do’’ (Fighting Bribery on the Grid). This means that society starts to accept bribes in a positive way. However, it is rather unwanted news to business, especially the international ones. Even though, Ukraine is getting modernized, the society is still deeply used to doing business ”the old way’’. As I was informed, your business was started to create a better life for Ukrainians, so it would be wise not to pay bribes. This way you will give an example to follow for others.

Moreover, if a company decides not to pay the bribe, they can use it for their public image. This basically means that if you announce publically that you play according to rules, you may catch the attention of the potential customers who are interested in the same goals. As Thomas Rikniger, a lawyer specified in bribery cases, said in his article “Fight Bribery in the Boardroom”, “The companies taking a pro-active and visible stance against corruption and bribery are likely to be the ones who win in the foreseeable future” (p.2). As result, you might be seen as stranger that does not want to play along the rules of the society in the government workers eyes. However, I strongly believe it is possible to stay in business while not paying bribes. In the long run, it would be beneficial for both the government and the society, as well as for your business.

Finally, if you decide not to pay the bribe, you are helping the society of Ukraine. Even though there is already law enforcement that forbids people to pay bribes, it is still quite ineffective. As stated by Manoj Armelon in his article ‘’Effects of corruption on society’’, “…that officials are still easily bribed and that it is difficult to track down from the legislation is not fulfil its primary goal – to prevent the corruption and bribery” (p.3). The only way there can be implemented a change in the country is by starting doing changes with your own business. I read the strategy of “Customer Strategy Solution” and I am convinced that this company can have a bright future that will provide the strength to fight its way through.

In conclusion, the corruption is seen as illegal action for a reason. It not only increases your expenses, puts you at risk of being arrested, but also creates an illusion of safeness after bribe is paid. In order to have a possibility of expanding your business further on, I found it necessary not to pay bribes since the advantages do not outweigh the drawbacks of bribery. By not paying the bribe you will not only potentially help your business, but you will also help the society to change into corruption-free environment. This will lead to a long-term development of the society and the people of Ukraine.

I recommend that you start a research to figure out that exactly Ukraine Tax Authorities has against you. This way you would be able to prepare for their future actions. In addition I would advise you to check if the latest inspections have been an official inquiry and not an extortion racket on the side from the four UTA agents. Finally, you can always ask for guidance and advice from international anti-corruption committees that are working all over the world.

Yours sincerely,
Giedre
CEO of B2B consultants

(1094)
Style: UK English

Works Cited

Armelon, Manoj. "Effects of Corruption on Society." Financial Consulting. Squidoo. Np 3. Nov. 2007. Web. 6 February 2013.

Morkovin, Roman. "Fighting Bribery on the Grid." The Moscow News, Oct. 2012. Web. 06 Feb. 2013.

Rikniger, Thomas. "Fight Bribery in the Boardroom." Fin24. News24. Np 2. Aug. 2010. Web. 06 Mar. 2013.

Cited: Armelon, Manoj. "Effects of Corruption on Society." Financial Consulting. Squidoo. Np 3. Nov. 2007. Web. 6 February 2013. Morkovin, Roman. "Fighting Bribery on the Grid." The Moscow News, Oct. 2012. Web. 06 Feb. 2013. Rikniger, Thomas. "Fight Bribery in the Boardroom." Fin24. News24. Np 2. Aug. 2010. Web. 06 Mar. 2013.