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Case study bribery

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Siemens Bribery Scandal

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The US Department of Justice called it "the largest foreign bribery case in history". After Brazilian multinational Odebrecht admitted guilt in a cash-for-contracts corruption scandal in 12 nations, it vowed to change its ways. But Brazil's authorities are still wrestling with an encrypted computer system used to run the firm's illicit payment system. The federal police building in Curitiba, in the southern state of Parana, has hardly been out of the news. In June , the now-convicted former chief executive, Marcelo Odebrecht, was brought here.
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Bribery in Business: A Legal Perspective Case Study Analysis & Solution

According to legal and ethics experts at Wharton and elsewhere, the Wal-Mart case raises broader questions about how multinational companies conduct business in foreign countries. Is the practice of bribing public officials ever justifiable from an economic or ethical point of view? And apart from collapsing share prices and shareholder lawsuits, what are some of the other possible consequences of bribing foreign officials? Despite the hoopla surrounding the Wal-Mart case, corporate bribery of public officials remains an all too common practice in many countries around the world, according to the most recent annual report by Transparency International TI , a Berlin, Germany-based nonprofit with more than chapters around the world.
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Companies usually manage bribery and corruption risk through a mix of internal processes, certification requirements, and basic good practices — including with suppliers and vendors. External standards such as the ISO Anti-Bribery Management Systems Standard, published by the International Organisation for Standardisation, can also be a powerful tool in support of those efforts, helping companies strengthen their ethics and compliance practices by offering a clear framework for action. The standard intentionally does not prefer the legal regime or regulatory architecture of one country over another, but rather is meant to outline a set of practices that can be used by companies regardless of where they have operations. As more companies use standard like this and share their experiences, the more they can help reduce the power of corrupt practices on business around the globe. Consider that in India in , nearly seven in 10 citizens reported paying a bribe to access basic public services such as public schools, public clinics or hospitals, access to official documents, and utilities, according to Transparency International.

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