CHAPTER 11:

BRIBERY AND EXTORTION IN BUSINESS

 DEFINITIONS:

Bribery is not only an unethical practice in business,but it is

also a crime punishable by law. It is desired that this
business practice be stopped. However, the problem of
approaching bribery legally lends difficulty to the
curtailment of the practice.

BRIBEis a payment with the intent of influencing directly

or indirectly the conduct of an individual.
 The idea that bribery in business is an ethical problem is certainly
not new. It assumes that human beings, even the nicest of them, can
be corrupt. As the organization grows in scope and changes its
structure, the opportunities for corruption grow and change along
with it. When the people behave this way, they were pressured , in
some cases, by business and professional competitions. Of course,
there are obviously many opportunities for corruption for both
management and its employees.
 MARK H. McCORMACK

Running a company is a constant process of breaking out

of systems and challenging conditional reflexes, of rubbing
against the grain.
Trust and confidence of management to its employees are
important.
Bribery and extortion are some of the moral pressures and
compromises which face individuals in business.
 BRIBERY IN BUSINESS

No personal gifts can be accepted in business. Gift giving

itself is neither evil or wrong. But it becomes evil or wrong
if it is given for certain considerations, regardless of
whether it is for past or future favors.
Bribery is committed by an individual who offer a gift or
make a promise to any person for the purpose of executing
an act which may or may not be accomplished.
To be convicted of bribery, it is not necessary to have
direct proof that the accused sought to be favored by an
official since such intention, unless expressed, remains in
the mind of the giver. This intention may be inferred from
the circumstances under which the gift is given.
 Why is bribery committed?

ANTONIO C. ROLDAN,JR. Answered that......

BRIBERY is committed first because it is attractive. It
offers gains or rewards to both the giver and the taker at
any negligible or minimal risks. Its consequences to these
individuals are tempting or seductive enough. Take away
its attraction by reducing the rewards and increasing the
risks, and nobody in his right mind is going to risk it.
Bribery is committed because it is rationalized as good.
Both giver and taker have a battery of alibis, half truths and
plain lies to justify their action to themselves, their families
and their peers. Such alibis include common conscience-
plugs and image-preservatives such as Everybody does it
anyway, and We're only human. if I don't take it, others
will, and many others.
 BUSINESS BRIBERY

According to Irwin Ross, is morally reprehensible. It

stains all relationships, business or public.
It requires them to act in violation to their commitment to
their organizations. As such, bribery is not only bad
business, but bad for business.
Can the ethical values of business bribery be accepted on certain
circumstances?

Business bribery has no public defenders. Although many

people agree to eliminate corrupt business practices, they
are sharply divided on how to curb it.
Business bribery influences the outcomes of events. It
puts others at a competitive disadvantage. Thus, this
human conduct should be condemned.
 The use of bribery in business is unethical. It destroys the
self importance and dignity of people.
Bribery is rampant in some societies. In many cases, the
motive was simply to secure or hold the business. Bribery
reflects the character and integrity of the people of that
society. As such,both parties should be condemned.
Unfortunately, many people cannot see this perspective on
such relationship.
WHAT IS THE SOURCE OF GRAFT AND CORRUPTION,
AND HOW CAN WE PREVENT OR MINIMIZE IT?
 HENARES answered that the question elicits answered
pat and simplistic. The answers are as follows:

1. to minimize graft, we must have less government and

more private enterprise.
2. graft comes about because public officials are underpaid
and forced to steal.
3. the more checks and balances, the less opportunity for
graft.
4. it takes two to tango, the corrupted and the corruptor,
who bear equal guilt.
 According to Henares:
GRAFT AND CORRUPTION is endemic to economically
poor societies. Not necessarily, graft is more pronounced
in frequency and volume in rich and more sophisticated
countries such as the united states.

Graft and corruption - is fatal to economic development.

 PETER F. DRUCKER
-pointed out that one cannot buy loyalty; one can only
earn it. One must not bribe people into staying; they only
blame the company for their own inability to resist the
temptation one must not make the penalty of firing a amn
so severe that one never imposes it. And one should not
make executive security conscious. Men who look upon
their own affairs from the viewpoint of security are not
likely to look at their work from a different angle of vision,
and are not likely to pioneer, to innovate and to reach but
for the view.
EXTORTION IN BUSINESS
 EXTORTION

-is getting money or anything of substantial value by

violence, threats or similar acts.
It exists when an individual demands payment of any sort
for the execution or non-execution of acts which he is
obliged to perform or to omit under the terms of his
employment contract. It caused, in some cases, unethical
issues to be condemned. It is a serious violation of the
fiduciary relationship between the employer and its
employee.
 Extortion is committed because there is an opportunity to
do it in the organization.

UTANG NA LOOB-- is an act of moral compulsion and self

conviction. Hence, opening the opportunity for extortion in
the organization.
 CLARENCE IRVING LEWIS

It could not be their rightness or wrongness:results of

action, taken by themselves, could not be either right or
wrong; they could have, and do have, the property, of
goodness or badness independently of any doers' decision
or commitment to bring them about.

There is indeed nothing which is desirable or undesirable

for its own sake and entirely without reference to anything
beyond itself except that quality of passages of experience
by which he who experiences them finds them satisfying
and such as he would prolong, or disatisfying and such as
he would terminate or avoid.
 ALFREDO PANIZO

Gave a fair warning to these government oficials when he

said:
Governments are undermined by the greed and the
abuse of power of rulers. On the part of the subjects, there
is always a tendency to resent the role of the class in
power. Dissatisfaction breeds ambition and the desire to
reach for power.
 DAN SMOOT

There are discretionary laws, applied or not applied at the

discretion of enforcement officials. Discretionary laws are
always potential blackmail or blackjack laws, which breed
bribery and corruption.
 SUMMARY

BRIBERY is not only an unethical practice in business, but

it is also a crime. Bribe is a payment made with the intent
of influencing, directly and indirectly, the conduct of an
individual.
Bribery and extortion are some of the moral pressures and
compromises which face individuals in business.
There are several reasons why bribery is commited.
However, the ethical values of business bribery cannot be
accepted, regardless of circumstances. In fact, it should be
condemned.
Anthing that can be construed as a bribe are not only
unethical, but also unlawful.
 To minimize graft and corruption, the individuals should be
fully integrated into the nation, and in turn, nationhood be
fully integrated into their lives.
Extortion is one of the ethical problems faced by people
engaged in business. It is committed because there is an
opportunity to do it. It could break the traditional norm of an
individual.
In extortion, property of goodness or business is not the
only factor to be considered in the individuals decision.
Many people, because of their ambitions, are forced to act
blindly on the demand of their superiors.
THE END