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Introduction
Bribery is defined by Black's
Law Dictionary as the offering,
giving, receiving, or soliciting
of any item of value to
influence the actions of an
official or other person in
charge of a public or legal duty.
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Types:
Kickback:
An illicit payment made to someone in
return for facilitating a transaction or
appointment.
Reciprocity:
The practice of exchanging things with
others for mutual benefit, especially
privileges granted by one country or
organization to another.
Under the table:
They offered him money under the table
to change his mind.
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Important terminologies :
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Causes :
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How Bribery Effect the emerging economies
• Bribery Causes Artificially High Prices • Education and Healthcare are Low
for Low Quality Products and Services Quality
• When a large corporation decides to enter a foreign market, it must usually secure a
number of licenses, permits, registrations, or other government approvals. For that
propose they usually offer bribe to government officials.
• According to TI. 1 out of 4 people pay bribe in 2009.
• WEF calculated the cost of corruption which is 5% of global GDP in 2011.
• Bribery falls into a grey zone that can be difficult to analyze, according to single global
standard .
• Over the past two decades governments and regulators have sort to define the
behaviors that considered un ethical and illegal.
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Cont ….
The scope of the problem:
• Multi national company have adopted anti-corruption policies, such policies. Some
evidence show that implementation is not always as effected as might be hoped.
• According to CPI it is difficult to rank countries because corruption is a hidden process
and difficult to measure.
• The CPI confirms that corruption remains a problem worldwide and takes place even
in the wealthiest countries.
• The Dow Jones State of Anti-Corruption survey indicated than more than 40 percent
of companies believe they have lost business to competitors who won contracts
unethically
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Corruption from a Cross-Cultural Perspective
• The world is moving towards globalization and different countries have their own
norms and values of corruptions .
• In some part of world its considered ethical and in some its unethical because
cultures can operate in different ways and different behaviors.
Example :
Chinese concept of Guanxi (gwan-shee) it means network or a connection. In
PAKISTAN IT IS KNOWN AS CHAI-PANI or SAFARISH.
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Anti-corruption strategies :
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Recommendations:
• Awareness-raising initiatives in the public and • Enhance the transparency of the government
private sector for the purpose of preventing and and private sector activities in the fight against
detecting bribery. bribery.
• Increase the sphere of current legislation. • Set accounting and auditing standards for
prohibiting the use of accounting documents for
• Strong law enforcement in civil, commercial,
bribing.
and administrative laws and regulations, in
order to combat bribery. • Collective effort by the private and government
sector.
• Building integrity by promoting governmental
accountability and transparency.