I am pondering about this. Where does one draw the line when it comes to bribery/corruption? Particularly relating to business dealings? This does not apply just to China, but let’s take China as an example. OK, I know bribery/corruption is illegal. I’m defining it broadly. Maybe I should call it influence instead. So that includes taking people out for elaborate dinners, gifts, using “agents”, lobbying (in this country), etc.
I would say, definite NOs if:
- You are going to harm innocent individuals. E.g. contaminated milk, leaded toys
- You are going to sabotage a competitor. E.g. paying someone to block a competitors’ deal
- You are breaking the law, outright
- You are robbing Peter and giving it to Paul. For example, you’re enhancing the wealth of the management of a company while hurting their shareholders.
Likely YES if:
- You are removing an artificial roadblock. E.g. you are paying authorities not to delay a regular business license application
- You are ”paying to play”
NOT SURE if:
- You’re getting an unfair business advantage or special treatment. E.g. winning a contract from a competitor
- The Yahoo/Google predicament. They’re paying to play. Not with money, but by cooperating with the government. Their actions causes harm to someone who is innocent according to US law, but not innocent according to Chinese law.
What do you think? Are there hard and fast rules?
Interesting article. It is appreciated.