Unit 11: Bribery or Business as Usual?

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PRE-READING QUESTIONS
Think about the following questions.
1. What are some cultural differences in how business is done?
2. What happens when people don't understand each other's cultural differences?
3. Do you think some cultures have a better way of doing business than others?

 

VOCABULARY PREVIEW

Match each New Academic Word List(NAWL) word with the correct definition.

  1. corruption
  2. differentiation _____
  3. subjective _____
  4. sensitivity _____
  5. treaty _____
  6. traditionally _____
  1. a. a statement of the difference or differences between two or more things 
  2. b. according to a way of thinking or behaving that has been used by a particular group, family, society, etc., for a long time
  3. c. an official agreement between two or more countries
  4. d. doing things that are dishonest or illegal in order to make money or gain power 
  5. e. an awareness and understanding of the feelings of other people 
  6. f. based on feelings or opinions rather than facts

 

BRIBERY OR BUSINESS AS USUAL?

Cross-cultural trainers often advise those traveling through or working in another culture to show sensitivity to cultural differences. What they mean is that visitors should accept the behaviors of the new culture even if they seem strange or wrong. In cross-cultural contact, right and wrong may be understood differently by the two cultures.

According to this view, judgments about ethical behavior are subjective and differ from place to place. Take, for example, the behavior of bribery1. In most countries, businesses that bribe government officials in order to get favors or special treatment are considered to be acting unethically. However, this behavior may be traditionally allowed or even expected in some cultures. In a German magazine, one minister2 in the Thai government's Office of Land Management was quoted as saying, "Bribes are part of traditional Thai culture. This minister went on to explain that his employees were told to accept any money offered to them, as long as they did not ask for it. The bribes were considered not corruption but a "bonus," a needed addition to the very low pay of this office's employees.

Bribes may be required in a variety3 of business situations. They are most often paid just before a contract is finalized. Bribes may also be paid to suppliers to ensure4 quick delivery, or they may be given to distributors5 to guarantee delivery of high-quality products. When such bribes are meant to speed up a business deal or make it go more smoothly, they may be referred to as "grease payments." Bribes may also be used to buy "protection" for a business, either against some harmful act or against government harassment6.

In an effort to crack down on the payment of bribes to foreign governments, the US passed a major new law in the 1970s. The Foreign Corrupt Practices Act (FCPA) was created after an official probe7 revealed how much money US companies were paying in bribes to governments and officials in other countries. More than 400 companies doing business internationally had paid over $300 million in bribes. These bribes were hurting the image of the companies within the US. Therefore, the American government proposed the FCPA to restore integrity8 to American business and confidence among American consumers.

According to the FCPA, any US business caught paying bribes to any official or agent of another country's government could be punished by fines or imprisonment. The fines could be up to twice the amount of the bribe. The term of imprisonment could be as much as five years. But this law actually put US businesses at a disadvantage in the global market. Companies from other countries were still paying bribes to do business. Therefore, the US government worked with its major trading partners on a treaty to crack down on bribery and other unethical business practices. In 1997, thirty-four countries signed an agreement called the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions9.

There is no clear differentiation between bribes and gifts in either the FCPA or the international convention. But if a gift-especially a gift of money-is given with the goal of receiving some favorable action, then it is most likely a bribe. On the other hand, a gift is not viewed as a bribe when it is given after the deal is closed or service has been provided.

 

New Academic Word List

  • bribery 1 : n. an illegal payment that is made in order to get someone to do something
  • minister 2 : n. a politician who is responsible for a government department or has an important position in it
  • variety 3 : n. a number of different things or people
  • ensure 4 : v. to make sure
  • distributor 5 : n. a person or company that supplies stores or businesses with goods
  • harassment 6 : n. the act of annoying or bothering someone in a constant or repeated way
  • probe 7 : n. a careful examination or investigation
  • integrity 8 : n. the quality of being honest and fair
  • transaction 9 : n. a business deal; an exchange of goods, services, or money

 

READING COMPREHENSION

A ‣ Mark each statement as true (T) or false (F) according to the reading.

  1. Bribes are generally considered wrong in Thailand.
    • True
    • False
  2. US companies paid bribes to businesses in other countries.
    • True
    • False
  3. The US passed a law against Americans paying bribes to officials in other countries.
    • True
    • False
  4. A new treaty about bribery was signed in 1997.
    • True
    • False
  5. The FCPA explains the difference between a gift and a bribe.
    • True
    • False

B ‣ Choose the best answer according to the reading.

  1. What is the main idea of the reading?
    • a. Bribery is more common in some countries than in others. 
    • b. Stricter laws against bribery are needed because it is very harmful. 
    • c. Businesspeople pay bribes to get better treatment from the government. 
    • d. Bribery is a complex issue that not all cultures agree about.
  2. In paragraph 4, the phrase crack down on is closest in meaning to ___.
    • a. find 
    • b. punish 
    • c. criticize 
    • d. encourage
  3. What can be inferred from paragraph 4?
    • a. Other countries pressured the US to crack down on corruption.
    • b. The US government received more in bribes than other governments.
    • c. Generally, people in the US do not approve of bribery. 
    • d. Foreign governments were forced to pay back bribes they received.
  4. Which is NOT true of the FCPA?
    • a. It was written after an investigation in the 1970s. 
    • b. It hurt American companies in the international market. 
    • c. It punished foreign businesspeople for bribing Americans.
    • d. It called for prison or fines for those who break the law.

C ‣ Fill in the blanks with information from the reading.

  1. People doing business in other countries must be sensitive to _____.
  2. The purpose of a(n)“_____" is to speed up or ease a business deal.
  3. American international companies had paid more than _____ in bribes to foreign officials.

 

SUMMARY

An introductory sentence for a brief summary of the passage is given below. Choose three more sentences to complete the summary.

First Sentence: International business practices are a sensitive issue due to cultural differences between countries.

    • 1    Even though some countries view bribery as illegal, others tolerate it or even view it as an addition to their wages.
    • 2    Grease payments are bribes that can speed up the completion of a deal and even ensure the delivery of high-quality goods.
    • 3    The US government cracked down on the American businesses that were taking part in bribery, but it put American companies at a disadvantage.
    • 4    The US government worked with its international trading partners and established a treaty to combat bribery.
    • 5    An investigation showed that international companies had paid the US government large amounts in bribes.

VOCABULARY PRACTICE

Fill in the blanks with the words in the box. Change the form if necessary.

  • traditionally
  • sensitivity
  • corruption
  • treaty
  • differentiation
  • subjective
  1. _____ , Americans eat a big turkey dinner with their families on Thanksgiving Day.
  2. The judge went to prison after being found guilty of taking bribes and other forms of _____ .
  3. Humor is very _____ ; different people will always find different things funny.
  4. One goal of advertising is to provide a clear _____ between your product and other companies' products.
  5. Negative remarks about a person's appearance or weight are rude and show a lack of _____ .
  6. Leaders from the world's biggest industrialized countries are meeting to discuss a(n) _____ concerning nuclear weapons.

 

SUPPLEMENTAL READING

Promoting Business Ethics

A surprising number of employees in large companies report feeling pressure to "do the wrong thing." One out of eight workers reported that their coworkers or managers somehow pressured them to do something against the company's ethical standards. This kind of corruption has led several large companies into difficulty and even complete failure.

When a large corporation fails due to corruption, a clear message is sent to the public. That message is, “Unethical behavior will get you in trouble." It appears that more students are getting this message, as business ethics courses are becoming more popular. Interestingly, however, very few MBA programs in North America require students to take any business ethics courses. For this reason, an international organization called Enactus is working hard to train young businesspeople to make ethical business decisions.

Enactus, formerly known as Students in Free Enterprise, works through teams of university students who volunteer their time to work in training courses and to develop projects that make a positive difference in the world. These teams can be found on more than 1,500 campuses in thirty-six countries around the world. The organization is supported by faculty advisors on these campuses, and many international corporations take part in events organized by Enactus.

Each year, the teams from each university write an annual report of their activities and give a presentation in a competition. The best team is awarded the Enactus World Cup.

 

Fill in the blanks with information from the reading.

  1. Classes on _____ are growing in popularity.
  2. Enactus trains _____ how to do business in a moral way.
  3. University students form teams, which are found in _____ around the world.
Answer Key

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