Is It Rational to Pay Bribes?

business_ethics_highlights_2Bribery is unethical. But if it makes rational, economic sense to do it, then the ethical argument faces an uphill battle. The blog entry below suggests that while it sometimes seems like bribery might be rational — after all, it gets you to “yes,” right? — that appearance might be deceiving. >>>

LINK: The Microeconomic Perspective on Bribery Incentives (by Michael Volkov @ Corruption, Crime & Compliance Blog)

The bottom line for companies is that saying no to bribery makes ethical and rational economic sense. Of course, there are situations where companies find that individual actions may justify bribery in their mind. It is estimated that at least one third of all global companies frequently pay bribes. Increased enforcement of anti-corruption laws creates additional costs for companies to weigh in the bribery calculation. For that reason, enhanced enforcement as promoted by the OECD foreign bribery convention is a positive force for reducing corruption in many important OECD countries…..

What do you think?


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One comment

  1. Scott Killingsworth

    The decision to pay a bribe is often infected with gross irrationality… http://complianceandethics.org/the-irrational-calculator-sales-at-the-crossroads-of-compliance/

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