Menu

Dilemmas Surrounding Issues of Corruption that May be Faced by Multinational Corporations

0 Comment

However, bribery howsoever prevalent is not appreciated by the international corporate world and wants some code to be issued in the same regard. There are several serious dilemmas facing the issue. The first and foremost is to define what exactly should be termed as bribery as the distinguishing lines are grey. In such situations business practices for relationship building also come under the microscope. Let us look at prominent practices which could be termed as prescribed cases of bribery.
Every business has to deal with government system for establishing the business in a particular country or a region. Payments termed as bribery are actually payments made towards officials who demand the payments. Now let us also know why such demand is made especially when the job that is expected out of him is a routine. When the position held by the official is a key post this is bound to happen. For example, if an official is aware that certain decisions or permissions have to be given from his desk, a payment is demanded. The payment asked would be for the passing of the particular file with positive remarks or approvals. In such case, the money that exchanges hands would certainly be termed as extortion. In other words, this is known as facilitation payments or payments made to facilitate the work. Although this is a clear case of bribery it is very difficult for a business to survive without getting into it. The added problem is inflated egos and a difficulty to push the papers through irrespective of the payments made. There is no clear-cut international code which says anything about extortion payments made to government officials.
Another severe problem lies in the mindset of the society the corporate is working into. The culture plays a major role in the decision of whether or not to get into bribery. Let us, for example, talk about corporate hospitability.