Question

Some individuals believe that the public sector is so corrupt in certain countries that bribery should just be considered a cost of doing business in those locations. In other words, bribery should be considered an ordinary and necessary business expense. What are your thoughts on this statement?

Answer 1

I agree with the statement. Public sector in certain countries, especially third world countries and developing economies, is mired with corruption, red-tapism and bureaucracy. In fact in some of the countries corruption is so rampant that in order to set up new businesses, obtain licenses and business approvals, and expand existing businesses, government officials and bureaucrats have to be bribed.

If this is not done then the file will languish in the government offices for much time and finally when the approval or the license or the go-ahead is granted to the business then it may be too late and the corporate entity may not find it advantageous to make the investment any more.

Even though supporting corruption through bribery is both illegal and unethical business entities in certain countries have no option but to be a part of the existing system and pay bribes. These companies have to compromise on their principles and values and have to partake in bribes and consider it as a cost of doing business in certain countries.