Businesses still have some way to go to embed anti-bribery and corruption mechanisms effectively into their culture. This gap between saying and doing is also reflected in external studies.
Cultural ethical dilemmas in business- from bribes paying to political affairs 12 Oct Leave a comment Guest writer Irina Budrina looks at certain ethical issues when it comes to business, from the bribe — known in Romania as Spaga — to ethical issues in political affairs.
International companies are confronted with a variety of decisions that create ethical dilemmas for the decision makers. Some ethical standards are culture-specific, and one should not be surprised to find that an act that is considered quite ethical in one culture may be looked upon with disregard in another.
Ethical issues concerning bribes International businesses may be faced with a difficult situation of being involved in corruption without even knowing it sometimes.
In some cultures it is acceptable to offer bribes to get a certain business transaction done. Bribery may come in many forms such as money, flowers, gifts, favors and entertainment. Giving any sort of bribe is illegal and unethical in the United States and the UK. However, in some countries there is no other way of getting any business done other than offering bribes.
Also, giving a gift in appreciation to someone is considered as a bribe in United States, but it is a normal act in Romania, and a business expense which can be written off in Germany or part of a prime cost in Japan.
In Romania, bribery is by law illegal. The bribe goes by different names in different countries. It is called mordida in Mexico, dash in South Africa, baksheesh for a tip or gratuity in India, Pakistan and in the Middle East, schimengeld for grease money in Germany, and bastarella a little envelope in Italy.
Many business people believe that bribes are necessary costs of doing business in another country. This may be the hardest ethical dilemma you have to face.
|Corruption continues to be the most common ethical issue for||Describe an ethical dilemma that you might face in your current or chosen workplace.|
|Bribery and corruption: support employees to do the right thing||It's not surprising, then, that employees face ethical dilemmas there. Several of these dilemmas pop up on a regular basis.|
|Ethical Dilemma: Workplace Corruption (Retail)||Risks to business Legal risks — international legal instruments Avoidance of corruption is primarily an issue of legal compliance — and so should not constitute a dilemma per se. Nonetheless, there will be a range of situations where it is not necessarily clear to a company or its employees whether the actions they are carrying out amount to corrupt activity.|
Although there is a law in the US and in the UK called Foreign Corrupt Practices Act which prevents paying bribes to foreign governments and businesses, it is not certain that the law is strictly followed in other countries.
Take the following example: An additional unjustified expenditure of almost EURpaid in a contract with a law firm was also discovered during the audit at Oil Terminal. And Oil terminal is not alone.
The solution is a simulated workplace ethical dilemma involving a corrupt business manager and a trusting business owner. The situation puts an observant worker to the test as said worker tries to correct the situation based on ethical and moral considerations about the 'right thing to do' using key ethical and moral reasoning. This may be the hardest ethical dilemma you have to face. Although there is a law in the US and in the UK called Foreign Corrupt Practices Act which prevents paying bribes to foreign governments. Others attend only those business-related social functions when they or their company or local office can pay for the cost of attendance because it is in the interest of maintaining good business.
Which one do you think was at play in this case? What are the factors that push businesses to pay bribes spagas: Tax laws of the country encourage bribery. It can be written off as a business expense. Government control over business activities.
Government officials are poorly paid and use bribery to supplement salaries. Bureaucratic delays can be costly for business. Pressure from politicians to make contributions to political parties or causes.
Ethical issues and political affairs In many countries, political officials are deeply involved in commercial businesses. You may not even be able to work there without knowing someone in the government.
In a country where the government is heavily corrupted, the officials expect to be befriended and bribed. International businesses could gain advantages by offering bribes to government officials. However, it puts other companies at a disadvantage and is an unfair practice of business.
Ethical issues concerning illegal activities When working in another country, it might be easy to forget your moral standards and fall into the greed of making profit without any limitations. However, when everyone else around you is doing all these illegal activities you feel like you will never be held accountable for your actions if you also commit these acts.
I will give you yet another local example. Organizations spoke out against the project, from Greenpeace to the Romanian Academy.
RMGC plan to replace the old workings with a new operation according to EU standards, which would be the largest opencast gold mine in Europe.
The Romanian Government never gave it all the needed approvals, while the Rosia Montana Gold Corporation advertised heavily in the media to gain public support.Bribery, corruption and facilitation payments were the most commonly reported issues recorded by the Institute of Business Ethics' media monitoring during They accounted for .
The effects of corruption on society are well documented: politically it represents an obstacle to democracy and the rule of law; economically it depletes a country’s wealth, often diverting it to corrupt officials’ pockets; and, at its core, it puts an imbalance in the way that business is done.
The AG is now in an unenviable ethical dilemma: to drop the charges and face the accusations of partiality or to let the court case proceed so that justice is seen to be done. Bribery – The ultimate ethical dilemma starts to force change in the way business is done.
Of course I do not think for one second that there will never be bribery or corruption but if we can all start to work ethically it will force the hands of those who continue to lurk in the shadows to do their business.
Creating a culture of integrity and openness - where ethical dilemmas arising from doing business in corruption ‘hotspots’ are discussed, and employees feel supported to do the right thing - is a powerful way to help mitigate against the risk of an ethical lapse. CHINA: THE DILEMMA OF BUSINESS ETHICS AND CORRUPTION natural and ethical process of business -- a process that has, as its end, social harmony as well as profit.
The Chinese would, in turn, see the American principle of evaluating all business relationships on.