Navigating the Ethical Dilemma of Bribery in Corporate Culture

What will you do if you are being asked by a government official to pay a bribe to get company work done? What will be the consequences of refusing to bribe? What will management's reaction be?

I have come across a book by Gireesh Sharma - "I Refused to Bribe" and all these questions are coming to my mind. What will you do when asked to bribe?

Dear Avantika,

Refusing to pay the bribe shows your personal values. Very good. Keep it up!

Now, my appreciation aside, you need to take into consideration your company's culture and the mindset of your boss as well. What are his/her values? By replying to this question, you would have a better understanding. You have refused to pay the bribe, but what kind of work may get stuck with government officials? Will they create some other problem for you due to your refusal?

I know of an MNC where the management was very strict about not paying any bribes to anyone. They were willing to endure hardship. Because this was the company's culture, the senior management always supported junior management employees concerning the payment of kickbacks. In contrast, I have seen companies where leadership did not value legitimate transactions. Illicit dealings were quite appealing to them.

At this stage, it is important for you to keep your seniors informed. Write an email or a letter to them. In your report, include details such as the specific instance, whether any government official visited your company premises, or you visited any government office, who asked for illegal payment, when they made the request, for what purpose they requested it, and the amount they expected.

If the requested amount is substantial, then with the consent of your management, you may report the matter to the Anti-Corruption Bureau (ACB). The ACB is very efficient at apprehending such culprits.

Ok...

Dinesh V Divekar

Hi Avantika,

Kudos to you for refusing!

I fully endorse Dinesh's comments.

However, I would ask Dinesh (and other members), what amount is considered "too big"?

Surely, it is a question of principle and not amount. For once a bribe is paid, even if it is a small amount, the demands will only escalate over time, and then it is too late to question.

We also need to consider what constitutes a bribe.

Is it only a sum of money or can it also be a material gift, such as those given under the guise of "promotional" or "marketing" material?

Is taking a client out to lunch considered a bribe?

In our organization, we maintain a Register of Gifts where all gifts, received and given, are recorded in detail (including lunches, etc.). This register is maintained by the staff themselves and is located in our reception area for all to see. The record also details what happened to the gift; if it was kept by the employee, kept by the company, or given to charity. While I accept that this system is open to abuse, our experience has shown that, so far, the employees have been honest.

I look forward to further inputs.

Regards,

Harsh

What about the HR & Consultant nexus wherein HR & Consultant both share the benefits of backdoor entry jobs? HR himself recruits employees and routes them through a known consultant so that the consultant can make money. This practice is allowed, but paying a bribe to government staff for their extra interest and dedication in work is considered bribery and unethical. Most bribes are offered by MNC management themselves to avoid significant legal penalties for wrongdoing, and sometimes bribes are paid to staff to adjust certain situations.

Hello Avantika Kumar,

I am not really sure if you are asking for the comments of the members for a generic query or are referring to an actual situation—your wording doesn't seem to indicate that some actual situation is being referred to.

Can you please clarify and give more details?

However, the responses of Dinesh, Harsh, and Ravi convey the response situations succinctly, in general.

In general, corruption is as prevalent in the private sector as much as in the public/government sectors—except that such situations rarely come out into the public domain for a few simple reasons.

If any public official gets caught, the media catches the news fast, and the news becomes public. One also has statutory bodies like CVC, CAG, etc., to keep track of such issues.

But if a private sector official gets caught, the matter is most likely hushed up (even though the official is terminated), for fear of the company name getting tarnished (the individual anyway doesn't publicize it). How many private sector companies can actually afford such bodies?

Looking at the corruption situations among the public bodies, they are the recipients. But who are the "givers"? Obviously, most often, the private sector companies and/or individual citizens.

Regards,

TS

Dear Avantika,

HR experts have given their views and TS has raised a valid question. I am not an HR person; however, in my private life, I have suffered for refusing to pay a bribe. My father used to use a simple definition: a bribe is something that you pay in advance to get a favorable decision or speed up the decision. A gift is something that you may give out of pleasure. There is no compulsion to give a gift. However, if a bribe is not paid, one may have to wait or suffer.

I searched the web and found good pieces at [Gifts and Bribes](http://www.scu.edu/ethics/practicing/focusareas/government_ethics/introduction/gifts.html) and [Gifts, Bribery and Corruption | Feature Article 2005-12-31](http://www.ghanaweb.com/GhanaHomePage/features/artikel.php?ID=96869).

Even foreign firms pay bribes to get orders, etc., from developing and underdeveloped countries. All the scams that we hear about in the Indian press are due to this problem.

Dear Avantika,

Nice to read many good suggestions and appreciations in this regard.

This is a very common phenomenon for companies or corporates that have to deal with the bureaucracy of our beloved country. Every one of us comes to such a point when we have to deal with them, no matter how unwilling we may be. This is the time when all of our negotiation, interpersonal, and management skills are tested along with the fight against our internal selves. We have to take this professionally; many times, more things are at stake than just our internal consciousness. The growth and future benefits of our employees, the interests of the company, and our nation are also at stake sometimes, but these government officials only think of themselves.

My suggestion is to report to your seniors; they may be in a better position to deal with this situation than you, having higher contacts and privileges of some power center in the government. Also, many organizations have a specialist team to deal with these kinds of matters, who are more experienced in dealing with these people. But most of the time, everyone is not aware of it at lower levels.

And please relieve yourself from feeling guilty; we have to learn to fight with the system while we work within it. We cannot expect overnight change in it.

Good luck and have a happy life.

Dear All,

I am in agreement with Harsh. What constitutes too big or too small an amount? I work in an airline in the cargo section. On one side is the Customs department, and on the other is the Government Commercial Tax department, whose clearance is a prerequisite before any cargo is delivered. In practice, every party involved tends to solicit bribes. This is a national issue that would likely take decades to rectify. Nevertheless, congratulations on maintaining your integrity!

Dear All,

I have something to say about this. As a marketing person, I come across the same issues. The best way is to convince the management to get the orders in a country like India. If you are dealing with government officials, there will definitely be issues regarding bribery. At the end of the day, it is most important that you should secure the orders. I suggest continuing with the system rather than becoming an idealist.

Well, it's good to refuse to bribe, but it will be better if you stop other people from paying bribes and punish those who ask for bribes. Think wisely. When someone asks for a bribe for any purpose, like in your case, do not directly refuse or deny arrogantly. Just be polite and say you will see if that's possible. Later, you can inform the anti-corruption officials about the situation and follow their guidance. A similar situation occurred where a person and an official were caught red-handed by the anti-corruption bureau. Now, it's your choice to do what is good, better, or any other way.

Dear All,

Thanks for a very wide perspective on corruption, a virus which exists in a dormant or alive form in every Indian, except a rare few.

I can proudly claim that I have never taken a bribe, but yes, I have paid bribes where there was no other option to get my work or my organization's work done. (I am neither ashamed of this nor proud)

If anyone should be ashamed, it should be the Prime Minister and the chain which makes it virtually impossible for people of this country to do any work without greasing palms of people.

INSTANCE 1: I was working with a company that followed high values and principles. Their construction project got stuck in an NCR town of UP. They tried all the LEGAL and ETHICAL methods to get their project cleared, but nothing budged even an inch for a year. Delay meant huge losses plus also the same authority would levy a penalty for not completing the construction on time. Finally, they had to put aside their values and got hold of a 'consultant' who got their project through.

Even the best of the companies from the West like Walmart realize this phenomenon: IN INDIA, BRIBES ARE LIKE THE INDIANS DO.

Yes, it's possible to live in India without taking a bribe. That is in our control. But it's virtually impossible to survive without giving a bribe. It may be possible if you give up your job for one year just to keep running around tables to get a driving license, or give up your job for two years to fight for a passport.

So, my advice to this thread starter is to inform the boss. Take their opinion and then decide what you want to do.

Bribing is not just in India, it's all over the world. Please see Bribing Kids vs. Rewarding Kids for Good Behavior: What's the Difference? to appreciate how children can either be bribed or rewarded.

Kindly also see Bribery - Wikipedia, the free encyclopedia where different forms of bribery have been covered. I had told a student, in my MBA class, "Everyone has a price. If you want me to pass you, or give a good grade, when you have not performed well, you have to ensure that I can retire comfortably after doing that."

I am not justifying giving or taking a bribe that is prevalent in India.