Bribery - an inevitable evil?, International Business Topics, D.

Cotton, Longman
Bribery - an inevitable evil?
Preparation
1. Graft; payola; slush money; speed money (India; dash (!igeria; sha"edo#n. $hat do you thin" all these #ords
and phrases ha%e in common&
'. $hat "inds of (ri(es are offered in the (usiness #orld& Can such payments (e classified in any #ay&
). Is (ri(ery in (usiness ine%ita(le or can it (e eliminated&
*tudents ta"ing (usiness courses are sometimes a little
surprised to find that lectures on (usiness ethics ha%e
(een included in their sylla(uses of study. They often do
not reali+e that, later in their careers, they may (e
tempted to (end their principles to get #hat they #ant;
perhaps also they are not fully a#are that (ri(ery in
%arious forms is on the increase in many countries, and,
in some, this type of corruption has (een a #ay of life for
centuries.
In dealing #ith the topic of (usiness ethics, some
lecturers as" students ho# they #ould act in the
follo#ing situation, suppose you #ere head of a ma-or
soft.drin"s company and you #ant to (rea" into a certain
o%erseas mar"et #here the gro#th potential for your
company is li"ely to (e %ery great indeed. During
negotiations #ith go%ernment officials of this country,
the /inister of Trade ma"es it clear to you that if you
offer him a su(stantial (ri(e, you #ill find it much easier
to get an import licence for your goods, and you are also
li"ely to a%oid 0(ureaucratic delays1, as he puts it. !o#,
the 2uestion is, do you pay up or stand (y your
principles&
It is easy to tal" a(out ha%ing high moral standards, (ut,
in practice, #hat #ould one really do in such a situation&
*ome time ago the British car manufacturer, British
Leyland, #as accused of operating a 0slush fund1, and of
other 2uestiona(le practices such as paying agents and
purchasers #ith padded commissions, offering additional
discounts and ma"ing payments to num(ered (an"
accounts in *#it+erland. The company re-ected these
allegations and they #ere later #ithdra#n. !e%ertheless,
at this time, there #ere people in the motor industry in
Britain #ho #ere prepared to say in pri%ate, 0Loo", #e1re
in a #heeling.dealing (usiness. 3%ery year #e1re selling
more than a 41,555 million #orth of cars a(road. If #e
spend a fe# million greasing the palms of some of the
(uyers, #ho1s hurt& If #e didn1t do it, someone else
#ould1.
It is difficult to resist the impression that (ri(ery and
other 2uestiona(le payments are on the increase. Indeed,
they seem to ha%e (ecome a fact of commercial life. To
ta"e -ust one e6ample, the Chrysler Corporation, third
largest of the 7* motor manufacturers, disclosed that it
made 2uestiona(le payments of more than 8'.9 million
(et#een 1:;1 and 1:;<. By ma"ing this re%elation, it
-oined more than )55 7* companies #ho had admitted to
the 7* *ecurities and 36change Commission that they
had made du(ious payments of one "ind or another =
(ri(es, facilitating payments, e6tra discounts, etc. = in
recent years. >or discussion purposes, #e can di%ide
these payments into three (road categories.
The first category consists of su(stantial payments made
for political purposes or to secure ma-or contracts. >or
e6ample, the 7* conglomerate ITT (International
Telephone and Telegraph Corporation offered a large
sum of money in support of a 7* presidential candidate
at a time #hen it #as under in%estigation for possi(le
%iolations of the 7* anti.trust la#. This same company, it
#as re%ealed, #as ready to finance efforts to o%erthro#
the /ar6ist go%ernment of Chile #hose ?resident #as
*al%adore @llende.
In this category, #e may also include large payments
made to ruling families or their close ad%isers in order to
secure arms sales or ma-or petrochemical and
construction contracts. In a court case in%ol%ing an arms
deal #ith Iran, a #itness claimed that 41 million had (een
paid (y a British company to a 0go.(et#een1 #ho helped
clinch a deal for the supply of tan"s to that country. Ather
countries ha%e also (een "no#n to put pressure on
foreign companies to ma"e donations to party funds.
The second category co%ers payments made to o(tain
2uic"er official appro%al of some pro-ect; to speed up the
#heels of (ureaucracy. @n interesting e6ample of this
"ind of payment is pro%ided (y the story of a sales
manager #ho had (een trying for some months to sell
road machinery to the /inister of $or"s of a Cari((ean
country. >inally, he hit upon the ans#er. Disco%ering that
the minister #as a (i(liophile, he (ought a rare edition of
a (oo", slipped 8'5,555 #ithin its pages, then presented
it to the minister. This man e6amined its contents, then
said, 0I understand there is a t#o.%olume edition of this
#or".1 The sales manager, #ho #as 2uic".#itted, replied,
0/y company cannot afford a t#o.%olume edition, sir,
(ut #e could offer you a copy #ith an appendi6B1 @ short
time later, the deal #as appro%ed.
The third category in%ol%es payments made in countries
#here it is traditional to pay people to facilitate the
passage of a (usiness deal. *ome /iddle 3ast countries
#ould (e included on this list, as #ell as certain >ar
3astern countries.
The payment may (e made (y a foreign company to
ensure a tender is put on a selecti%e contract list or the
company may pay so that an import licence for essential
e2uipment is appro%ed. *ometimes an e6pensi%e gift may
(e necessary to soften up a go%ernment official.
1
Bribery - an inevitable evil?, International Business Topics, D.Cotton, Longman
@ common type in this category is the 0facilitating
payment1 = usually a smaller sum of money = made to
certain customs officials to clear cargoes. Ane
(usinessman has told the story of a deli%ery of 15,555
(ottles of sterile penicillin at the airport of a >ar 3astern
country. It #as apparently customary to pay customs
officials a(out 8'95 upon arri%al of each shipment to 0get
them out of the sun1. In this case, the company #as not
prepared to ma"e such a payment, so no money changed
hands. The /inister of Cealth of that nation then ordered
that each phial (e opened for inspection, there(y
destroying the #hole shipment.
Is it possi(le to formulate a code of rules for companies
#hich #ould outla# (ri(ery in all its forms& The
International Cham(ers of Commerce (ICC fa%ours a
code of conduct #hich #ould (an the gi%ing and see"ing
of (ri(es. This code #ould try to distinguish (et#een
commissions paid for real ser%ices and padded fees. @
council has (een proposed to administer the code.
7nfortunately, opinions differ among mem(ers of the
ICC concerning ho# to enforce the code. The British
mem(ers, led (y Lord *ha#cross, #ould li"e the system
to ha%e enough legal teeth to ma"e companies (eha%e
themsel%es. 0It1s no using ha%ing a dog #ithout teeth1,
they argue. Co#e%er, the >rench delegates thin" it is the
(usiness of go%ernments to ma"e and impose la#; the -o(
of a (usiness community li"e the ICC is to say #hat is
right and #rong, (ut not to impose anything.
In a #ell."no#n British ne#spaper, a #riter argued
recently that 0industry is caught in a #e( of (ri(ery1 and
that e%eryone is 0on the ta"e1. This is pro(a(ly an
e6aggeration. Co#e%er, today1s (usinessman, selling in
o%erseas mar"ets, #ill fre2uently meet situations #here it
is difficult to s2uare his (usiness interests #ith his moral
conscience.
Language Notes
Slush fund, a fund used to ma"e illegal or 2uestiona(le payments. *lush is literally melting . often dirty . sno#.
Padded commissions, commissions #hich are in e6cess of the normal or 0going1 rate.
Greasing the palms, paying (ri(es.
Clinch a deal, conclude a deal successfully.
On the take, recei%ing (ri(es.
Square with, reconcile; e2uate #ith.
A Comprehension
1. $hat purpose do lecturers ha%e in as"ing students the 2uestion a(out the soft.drin"s company&
'. $hat argument might someone in the British motor car industry use to -ustify the gi%ing of (ri(es&
). $hy #as the 7* company ITT critici+ed for ma"ing a large financial contri(ution to a political campaign&
D. The /inister of $or"s of the Cari((ean country did e%entually a#ard the contract to the sales manager. $hat
finally persuaded him to do this&
9. 36plain (riefly the difference of opinion e6isting #ithin the International Cham(ers of Commerce a(out ho# the
organi+ation should deal #ith (ri(ery.
B Vocabulary
1. Complete each group of sentences using an appropriate form of the word in italics.
Ethics
a Gi%ing a (ri(e to secure a contract #ould (e considered EEEEEEEEEEEEEEEEEE (y an honest (usinessman.
( $hen #or"ing under pressure, someone might find it hard to do #hat is EEEEEEEEEEEEEEEEEE correct.
Corrupt
a EEEEEEEEEEEEEEEEEE can in some countries (ecome the normal ingredient of an aggressi%e sales policy.
( *ome officials #ill under no circumstances accept (ri(es. They areEEEEEEEEEEEEEEEEEE.
c Ce #as charged #ith EEEEEEEEEEEEEEEEEE accepting unauthori+ed payments.
Moral
a It is easy to EEEEEEEEEEEEEEEEEE #hen one has ne%er (een in a position to (e tempted.
( *he is a person of %ery highEEEEEEEEEEEEEEEEEE.
c Ane must ine%ita(ly 2uestion the EEEEEEEEEEEEEEEEEE of his action.
d To offer money for corrupt purposes isEEEEEEEEEEEEEEEEEE.
e Ca%ing no sense of #hat is right or #rong, he is in fact totallyEEEEEEEEEEEEEEEEEE.
Approve
a *ecuring official EEEEEEEEEEEEEEEEEE for the import of goods can (e costly in some countries.
( Tenders for contracts ha%e to (e su(mitted in the EEEEEEEEEEEEEEEEEE form.
c /any authorities e6press pu(lic EEEEEEEEEEEEEEEEEE of (ri(ery, yet do little to try to stamp it out.
d The goods #ill (e sent to you onEEEEEEEEEEEEEEEEEE.
Tempt
a To many people, the offer of a country house #ould (e %eryEEEEEEEEEEEEEEEEEE.
( /ost people e6perience the EEEEEEEEEEEEEEEEEE to act against their principles.
'
Bribery - an inevitable evil?, International Business Topics, D.Cotton, Longman
Admit
a It is, EEEEEEEEEEEEEEEEEE, difficult to "no# the right course to follo# in certain situations.
( @n EEEEEEEEEEEEEEEEEE fact at his trial #as that he had offered a (ri(e.
2. Supply any appropriate word for each blank space.
In many countries, it is common to pay someone to ease the passage of a (usiness EEEEEEEEEEEEEEEEEE. >or a
company EEEEEEEEEEEEEEEEEE into these mar"ets for the first time, the EEEEEEEEEEEEEEEEEE to use (ri(ery is %ery
great indeed. In many cases, the company #ill ha%e to pay inflated EEEEEEEEEEEEEEEEEE to an agent or ma"e other
such payments if an order is to (eEEEEEEEEEEEEEEEEEE. Later, there #ill (e the routine handout to ma"e sure the
consignment of goods is EEEEEEEEEEEEEEEEEE through customs. @lthough an international (usiness community li"e
the ICC can gi%e guidelines to companies, it cannot EEEEEEEEEEEEEEEEEE (ri(ery (y its o#n efforts. It is up to
go%ernments in those countries #here (ri(ery is EEEEEEEEEEEEEEEEEE to help stamp out this EEEEEEEEEEEEEEEEEE
(y (ringing in la#s against corruption and ma"ing sure these areEEEEEEEEEEEEEEEEEE.
3. Circle the letter next to the most suitable interpretation.
a Those #ho are tempted to bend their principles,
(i generally are people #ithout any principles.
(ii usually change their principles according to circumstances.
(iii rather un#illingly ma"e some "ind of compromise.
( If you are in a wheeling-dealing business, you should e6pect,
(i to (e in%ol%ed in deals #orth millions of pounds.
(ii to ha%e fre2uent and e6tensi%e disputes #ith dealers.
(iii to #or" fast under pressure to get results.
c Speeding up the wheels of bureaucracy #ill pro(a(ly,
(i reduce administrati%e delays for a company.
(ii in%ol%e many contacts #ith official machinery.
(iii mean greater interference (y go%ernment officials.
d $hen a tender is put on a selective contract list,
(i a company gains an ad%antage o%er some of its competitors.
(ii no other company is allo#ed to (id for the contract.
(iii a company is almost certain to (e a#arded the contract.
e Industry is caught in a web of bribery. This statement implies that,
(i (ri(ery is #idespread and difficult for a (usinessman to a%oid.
(ii almost e%eryone in industry is engaged in ta"ing (ri(es.
(iii anyone entering industry #ill almost certainly (e corrupted.
C Language Practice
1. Make sentences from these notes.
a @rgued; (ri(ery; #idespread; industry; many countries.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
( Businessmen; used to; payments; customs officers; ensure; goods; rapidly.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
c /any companies; 7*@; admitted; (ri(es; large contracts.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
d *ome go%ernments; pressure; foreign companies; donations; political purposes.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
e 7* company ITT; unsuccessful; attempt; finance; o%erthro#; /ar6ist regime; Chile.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
f The International Cham(ers of Commerce; proposed; council; set up; administer; code.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
2. Forming complex sentences rewrite each of the following groups of sentences as one sentence. !o not
use and" but or because. Make any other necessary changes.
a /any enterprises ha%e to choose (et#een gi%ing in to e6tortion or not doing (usiness. They are usually #illing to
pay (ri(es to stay in the mar"et. This should surprise no one.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
)
Bribery - an inevitable evil?, International Business Topics, D.Cotton, Longman
( *ome /iddle 3ast go%ernments are #orried a(out their image a(road. They ha%e decided to in%estigate the conduct
of certain agents. The commissions of these agents are said to (e e6cessi%e.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
c The ICC recogni+es that political contri(utions are usually legitimate. It also reali+es that these may sometimes (e
used as (ri(es. It argues that go%ernments should ma"e la#s to ensure such payments are recorded.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
d /any people are pessimistic. The ICC is con%inced (ri(ery can (e limited. Companies must (e #illing to disclose
details of 2uestiona(le payments they are as"ed to ma"e.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
3. Complete these sentences by supplying the appropriate prepositions.
a The ICC dre# EEEEEE a report in #hich it put EEEEEE proposals to limit the gro#th of (ri(ery.
( The report, #hile ac"no#ledging it #as impossi(le to stamp EEEEEE the practice entirely, laid EEEEEE certain
principles of conduct for (usinesses.
c In the 7*@, people say that since the (usiness community has failed to come EEEEEE EEEEEE its o#n code, the
go%ernment should stepEEEEEE.
d The British, (ac"ed up EEEEEE many other countries, #ere in fa%our of legal enforcement of the code; others could
not go EEEEEE #ith this idea. It is uncertain #hich side #ill e%entually (ac" EEEEEE and offer some "ind of
compromise.
e *ome countries ha%e (rought EEEEEE la#s to limit (ri(ery.
f The ICC commission ran EEEEEE many pro(lems during its meetings. Its first draft code had to (e #atered EEEEEE
(ecause some pro%isions #ere considered too tough.
D Oral Wor
1. #rgue for or against the following debating theme
0If one is to succeed in (usiness, it is essential to learn the art of gi%ing a (ri(e, therefore high principles and (usiness
success are incompati(le.1
2. $ole %lay
Fou are the *ales Director of an educational pu(lishers. Ane of your firm1s (est.selling (oo"s is an 3nglish language
course (oo" gi%ing the foreign student a thorough grounding in the elements of the language. This te6t(oo" is doing
particularly #ell in @sian mar"ets at present. Gecently, you and your /anaging Director #ent on an @sian sales tour,
and in one of the countries you %isited, the t#o of you met an official in the /inistry of 3ducation. During the
meeting, this man mentioned that it might (e possi(le to get your te6t(oo" used throughout the country1s secondary
school system, (ut he hinted that he e6pected some sort of (ri(e from you for his co.operation.
Instructions
&orking in groups of three" students should take roles and enact the discussion which took place between
the Sales Manager" Managing !irector and Ministry of 'ducation official.
! Writing !"ercises
1. !iscuss some of the ways in which a business executi(e might ha(e to compromise his personal ethics
for the sake of his company)s interests.
2. Fou are the chairman of a company, (ased in Birmingham, 3ngland, #hich mar"ets cutlery in the 7H and o%erseas.
Fou ha%e recently learned, to your surprise, that your sales department has (een operating a 0slush fund1. >rom this
fund, secret payments ha%e (een made to indi%iduals setting up deals or #ho ha%e, ho#e%er indirectly, contri(uted to
the #inning of a contract. Fou are %ery upset to learn a(out the e6istence of this fund, especially since the fre2uency
and si+e of such payments seem to ha%e increased greatly in the last t#o years. @ccordingly, you call your /ar"eting
/anager, /r *her#ood, to gi%e him a piece of your mind and tell him that these 2uestiona(le payments must cease
immediately. To your surprise he does not agree #ith youI
&rite the dialogue that takes place between yourself" as Chairman" and the Marketing Manager.
D