Running Head: CASE APPLICATION 1: DIRTY LITTLE SECRET 1
Case Application 1: Dirty Little Secret
May 10, 2016
DIRTY LITTLE SECRET 2
1. What’s your reaction to these events? Are you surprised that bribery is illegal? Why do
you think bribery takes place? Why do you think it needs to be outlawed?
I was not surprised to hear that bribery still plays a role in companies today. Although it
did surprise that it was so widespread before rules were put in place. I am not surprised that
bribery is illegal because it is dishonest, and it gives companies an unfair advantage over
others. However, companies still participate in bribery because it can be a very direct and
successful way to get profits up and the company growing. I think it needs to be outlawed
though, because it corrupts people and builds a very distrustful and unhealthy work
environment.
2. Research whether other countries outlaw bribery?
After doing some research, it looks like many countries are attempting to outlaw bribery.
Corporations are not allowed to bribe government officials, which was a huge part of the
treaty made in 1997. It took years for the US to get other countries to agree to this treaty, but
countries and Europe and Asia have also outlawed bribery as well. I found that about 41
countries have signed an act outlawing bribery in their countries. While this list includes a lot
of big countries, there are clearly a lot of countries who have not outlawed bribery.
3. We’ve said it’s important for managers to be aware of external environmental forces,
especially in global settings. Discuss this statement in light of the events described.
It is important for managers today to understand the history of bribery and how it could
affect their country. While bribery has been reduced, it still plays a major factor in many
international companies today. A manager might become aware, for example, that the CEO
or head of their companies is accepting or giving out bribes. This manager would then
DIRTY LITTLE SECRET 3
probably have to make a very difficult decision on whether or not to report the bribery, with
their job on the line. While this example may be rare, it is important for a manager to be
aware of bribery, and how it could play a role in their company. They should be aware of the
regulations set in place by FCPA so that they can correctly identify bribery and report it.
