Bribery and International Business

Bribery has found its way into the dealings of international business. As usual, there are two sides of the coin in determining the effect that bribes have on international business affairs. The first argument states, "Although giving gifts shows respect in some cultures, bribery has no place in international business operations. Businesses that condone it enjoy an unfair competitive advantage over those that don't" (CTU, 2006). The second argument states, "Bribery is used in many countries as a way of cutting through bureaucratic red tape and expediting business deals. One could argue those opponents of bribery in the business context are preaching cultural imperialism" (CTU, 2006).

In my opinion, while understanding that bribes are unethical, I would have to agree with the second argument that has been presented in the preceding paragraph. In many countries, bribery is not illegal or it is an accepted practice (Daniels, J.D., Radebaugh, L.H., & Associates, 2007). In many cases, bribes have paved the way for businesses to expand globally and succeed. In many developing countries, this is the only way a corporation can secure property rights and contracts, since many of the governmental officials involved are extremely underpaid (Venckute, J., 2003). Another reason I agree with bribery in international business is that in several countries it is a cultural expectation that has deeply been rooted into the countries' traditions. For example, in Japan gift giving is always expected at the first meeting and holds deep symbolism. In Japan, gift giving symbolizes friendship, respect, and gratitude. The giving of a gift shows that one is anticipating a long lasting relationship (Roberts, K., n.d.).

The criminalization of bribery has become a two-edged sword. In 1977, the United States passed the Foreign Corrupt Practices Act (FCPA) in an effort to combat bribe payments by U.S. companies and has since been extended to foreign companies operating within the U.S. borders (Daniels, J.D., et al, 2007). Our own government has been involved in bribes when it provides aid to other countries in return for political support. Since the government can commit an act of bribery and maintain that it is legal, businesses should be afforded the same opportunity. By having U.S. based companies prohibited from paying bribes, it is a subtle approach to cultural imperialism (Daniels, J. D., et al, 2007).

Bribery has allowed for companies to expand globally regardless of the means. While bribery is essentially outlawed in the U.S. and several other countries, it has become a part of several countries' business practices as it is rooted into their traditions. It would be my opinion that companies should be able to operate according to the cultural traditions and customs of the local government in which it is seeking expansion. In the end, it all comes down to cultural differences and knowing where, when, and how a bribe should be used.

References

CTU. (2006). MGM220, Task List. Retrieved 29 Jun 2006 from https://campus.ctuonline.edu .

Daniels, J.D., Radebaugh, L.H., & Associates. (Eds). (2007). International business: environments and operations, Chapter 5: Globalization and society (pp.160-199). Upper Saddle River, NJ: Pearson Education Inc.

Roberts, K. (n.d.). International Gift Giving for Business. Retrieved 13 Jul 2006 from http://www.cyborlink.com/besite/international_gift_giving.html .

Venckute, J. (2003). Bribery / Corruption. Retrieved 13 Jul 2006 from http://www.idebate.org/debatabase/topic_print.php?topicID=236 .