CASE 18
Managing the Risks of Global Bribery in
Business
CASE NOTES FOR INSTRUCTORS
This case highlights the difficulties with gifts and bribes between businesses on a global scale. Knowing
when a gift can be considered a bribe is important and varies from country to country. Not only is this a
cultural distinction, but it is also one of regulatory concern. Emphasis is placed on the importance of
knowing and understanding the laws and regulations of the countries wherein a company’s business
occurs, and establishing and communicating company ethics policies on this issue.
The Foreign Corrupt Practices Act (FCPA) was established after multiple findings of bribery were
discovered between governments and businesses in the United States. The FCPA prohibits bribes to
foreign officials that encourage preferential treatment and hinder competition. However, it does allow for
facilitation payments, which are usually under $100, in order to help expedite business transactions.
QUESTIONS AND DISCUSSION
1. What are the differences between the provisions of the United States Foreign Corrupt Practices
Act and the United Kingdom Bribery Act?
The FCPA makes it illegal for individuals or entities to make payments to foreign government
officials to assist in securing or retaining business. It does allow for small payments to expedite
routine transactions, known as facilitation payments. While there is no set amount for facilitation
2. Check for more recent situations where companies have been accused of violating the Foreign
Corrupt Practices Act. Why do you think these companies chose to engage in bribery?
The answers to this question will depend on students’ research of the topic as well as their
opinions as to why these companies chose to engage in bribery. Their answers should be
3. Why is it so difficult to determine when a minor gift, entertainment, or incentive constitutes a
bribe?
ADDITIONAL RESOURCES