Bribery

Definition

Bribery is the act of offering, giving, receiving, or soliciting of something of value to influence the behavior of an individual in the performance of their duty, often in the public or commercial sector. It is a form of corruption that undermines ethical standards and the rule of law.

5 Must Know Facts For Your Next Test

1. Bribery can occur in both the public and private sectors, undermining fair competition and eroding public trust.
2. Facilitation payments, or small bribes to expedite routine government actions, are a common form of bribery in some countries.
3. Bribery can take many forms, including cash payments, gifts, entertainment, political contributions, and even the promise of future employment.
4. Anti-bribery laws, such as the Foreign Corrupt Practices Act (FCPA) in the United States, aim to prevent and punish bribery in international business transactions.
5. The consequences of bribery can include legal penalties, reputational damage, and the loss of public and investor confidence in an organization.

Review Questions

• Explain how bribery can undermine ethical standards and the rule of law in the context of 5.7 Ethics around the Globe.
  • Bribery undermines ethical standards and the rule of law by creating a culture of corruption where personal gain takes precedence over fairness, transparency, and the public good. In the context of 5.7 Ethics around the Globe, bribery can be particularly problematic as it can vary in its prevalence and acceptance across different countries and cultures. The use of bribery to secure business deals or influence government decisions can distort the level playing field, disadvantage ethical competitors, and erode public trust in institutions and the overall integrity of the system.
• Describe the role of anti-bribery laws, such as the Foreign Corrupt Practices Act (FCPA), in addressing bribery in international business transactions within the context of 5.7 Ethics around the Globe.
  • Anti-bribery laws, like the FCPA, aim to establish a consistent and ethical framework for conducting international business transactions. In the context of 5.7 Ethics around the Globe, these laws play a crucial role in combating the varying levels of bribery and corruption that may exist across different countries and regions. By prohibiting the use of bribes to secure business deals or gain unfair advantages, anti-bribery laws help to promote a more level playing field and encourage ethical business practices. Furthermore, these laws often have extraterritorial reach, allowing them to be applied to companies and individuals operating outside of their home countries, thereby addressing the global nature of bribery and corruption.
• Analyze the potential consequences of bribery on public trust, fair competition, and the overall integrity of the business environment within the context of 5.7 Ethics around the Globe.
  • Bribery can have far-reaching consequences that undermine the foundations of a healthy business environment, particularly in the context of 5.7 Ethics around the Globe. When bribery is used to secure contracts, influence decision-making, or gain unfair advantages, it erodes public trust in the fairness and integrity of the system. This, in turn, can lead to a lack of confidence in institutions, a distortion of market competition, and a general erosion of the rule of law. The consequences of bribery can include legal penalties, reputational damage, and the loss of investor confidence, all of which can have a significant impact on the overall business climate, both within a specific country and across international borders. Addressing bribery and promoting ethical business practices is crucial for maintaining a stable and prosperous global economy.

Related terms

Corruption: Abuse of entrusted power for private gain, encompassing activities such as bribery, nepotism, and embezzlement.

Kickback: A form of bribery where a portion of funds is returned to the person making the payment, often in exchange for favorable treatment or a lucrative contract.

Extortion: The act of obtaining something, especially money, through force or threats, often involving the abuse of power or position.