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  • Essay / Corruption and Bribery in Different Societies - 1116

    In modern Western contexts, it is generally wrong for public officials to accept bribes. However, in societies that view their institutions as having a nature and purpose that differ from the individual's view of nature and purpose, it is not necessarily bad for corporations to pay bribes. This essay seeks to explore the moral ambiguities between different societies with regard to corruption and bribery, as well as the dilemma that companies face when confronted with the different practices when doing business at on a global scale using business ethics and theories. Every business has moral principles and guidelines that it follows, however there are no defined ethical practices that every business adheres to. Companies all share the same profit objective and must manage the impact of their activities on all their stakeholders. When a company has different ethical practices in the society in which it operates, it must consider them from a business point of view but also from an ethical point of view. In societies where accepting bribes is a social norm, it appears to be ethical to do so. For example, in China, where bribery and corruption are a norm in the public and private sectors, Avon Products Inc, the world's largest cosmetics merchant, launched an internal anti-corruption investigation after reports Rumors of corruption surfaced. In 2005, several hundred thousand dollars in questionable payments were made to Chinese officials and third-party consultants. Avon's actions violated the Foreign Corrupt Practices Act (FCPA) which prohibits U.S. companies from paying bribes to foreign officials. Under the FCPA, it is improper to provide dinners and entertainment to government officials, but in China it is an essential practice for managing their “guanxi.” It could have been more difficult for Avon...... middle of paper ...... g countries and foreign investment will boost their economy and benefit them. However, if all foreign companies do not meet local standards, the country will be forced to accept global standards or will be left behind in globalization. Countries like the UK and US have the FCPA which prohibits companies operating overseas from bribing local officials, but they have failed to bring legal action against the companies. The United Nations' International Labor Organization (ILO) was created to ensure ethical practices globally, but nations are only bound to its standards if they choose to adhere to its conventions. The ILO is a good standard for businesses to adhere to, but it is not applicable to all local standards. The FCPA and ILO must do more to ensure the same ethical standards are applied globally and to discourage bribery and corruption..