Question

ABC Corporation is an American company that wishes to do business with Rimonter, a corporation located in Asia. Rimonter has the standard practice of requiring an undocumented payment of $50,000 to a charitable organization headed by Rimonter's CEO. This payment is required in exchange for securing a manufacturing contract with Rimonter Corporation.

In response to Rimonter's demand, what should ABC do?

Evaluate the various forms of bribery and factors that foster them, the ethical problems with bribery, and the diverse means and strategies for combating bribery.

Answer 1

ABC should refuse to pay the $ 50,000 requested by Rimonter Corporation and look for an alternate partner to do business because paying to Rimonter to secure the contract is tantamount to bribery no matter what the kind of organization it may be(In this case a charitable one).

In order to evaluate the forms of bribery, it is important to understand what bribery is. Bribery is a payment which is made as an act of taking or receiving something with the intention of influencing the person being bribed in some way so that the conditions become favourable to the party providing the bribe.It can be paid in cash or kind (like favouritism)and is said to have happened when the offer is accepted.

The fundamental ethical problem with bribery is the fact that it induces the individual involved to engage in disloyalty.

It makes the decision-making process biased and inequitable and damages the very basis of the moral fabric i.e trust.

It also promotes unfair competition and tends to influence an otherwise fair playing field which is detrimental to certain people in the long run .

There are numerous wrong effects of Bribery can be economic or non-economic.

The economic impacts are wastage of resources which could have been used for other purposes, encourages regulation to step in and issues such as shortchanging.The non-economic impacts include fostering inequality, political issues and disruption of social order.

The means to combat bribery are:-

• Forming strict Anti-bribery Laws
• Empowering the government
• Penalty and accountability for violation
• Allowing open donations without a vested interest without any hassle