Kickback. Carrot. Sweetener. Inducement. Backhander. They’re all synonyms for “bribe.”
Whatever you call it, bribery’s just a normal part of doing business in certain corners of the world. China, for example. For all its pre-Olympics tightening-up, business in China is still fueled by bribery. At least that’s what TRACE International has found. TRACE – a U.S.-based, non-profit association that counsels international companies on bribery – says that 148 reports detailing bribery demands in China were filed through its anonymous reporting system between July 1, 2007, and June 30, 2008.
How did it break down? Who requested the bribes, what did they request, and how much did they want?
- Major requestors included government officials (38 percent), government employees (14 percent), police, judiciary, and communist party officials (33 percent), with NGO reps, private companies and others taking up the remainder.
- What were they asking for? Cash or its equivalent made up the bulk of the bribery requests (77 percent). Nine percent requested hospitality and/or entertainment. The rest wanted things like “gifts,” “travel,” and “sexual favors.”
- The amount of bribes ranged from $20 to more than $500,000, with most requests coming in between $101 and $10,000.
(Download the full report from TRACE International.)
What to make of this? To some, business is business and if this is the way they do business in China then you have to play the game. But is it ethical? Should your company knowingly pay out bribes that only add to the corruption already endemic to a country’s culture and economy?
This knowledge comes to us via Ethics World.
