Institute for Business Ethics and Social Responsibility ? Is bribing ...

Question to Ask the Prof: If it is the norm to bribe public officials when doing business in? a foreign country and it is hard to get anything done if you don?t, is it unethical to offer bribes?

A (Professor Barbato): Corruption and bribery distort the marketplace so that the most deserving actors don?t gain what they deserve.? This is unfair and unethical, and it results in suboptimal outcomes in the aggregate. ?However, we must remember that business ethics is a practical endeavor, and cannot solely rest on lofty principles that deny the realities of the world in which we behave.? For instance, there are societies where bribery is part of the game, so to speak.? In other words, if you don?t bribe, then you can?t participate, and everyone knows that and everyone accepts that.? This would be like bluffing in poker.? It may not seem very honest, but everyone understands that it is part of the game.? However, business should not simply accept the status quo, it must also be an ethical leader in trying to change the status quo.? So honest businesses should participate in such an economy, but they should also take the lead in trying to change these economies into more honest and fair economies.? They should not use the excuse that ?everyone does it? to free themselves of all their ethical obligations.? So, like so many cases of business ethics, the answer is to be practical and principled at the same time.

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One more word about bribery.? Some societies use gifts to reinforce cooperation and loyalty; two values that lead to higher ethical behaviors.? Without a certain level of cooperation and loyalty, it is hard for businesses in some societies to arrive at optimal levels of productivity.? Although these gifts may seem like bribes that have the goal of corrupting, they can actually be seen as gifts with the goal of enhancing trust and cooperation.? Once again, business must be both ethical and practical in situation like these.

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