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Monday, November 19, 2018

How Managers Should Respond When Bribes Are Business as Usual


Corporate bribery—that is, the practice of companies paying government officials for preferential treatmentis not only illegal  in dozens of countries. Studies show that it’s also counterproductive resulting in lower profit margins, return on equity, and employee moralecostly delays as players haggle over the size of the kickback; and poverty and poor governance in the markets where they’re paid. Yet, according to the World Bank, roughly one-third of firms around the world use kickbacks, paying an estimated total of $400 billion a year. Since 2006, hundreds of companies  including global brands like NovartisHewlett-Packard, and Rolls Royce — have reached settlements with U.S. authorities on charges of overseas bribery.

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