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CORRUPTION AND ITS REMEDY
Etymologically the word “corruption” comes from the Latin verb “corruptus” (to break)
it literally means “a broken object”. Conceptually corruption is a form of behaviour which
departs from ethics, morality, tradition, law and civic virtue.
The classic definition views corruption as the use of one’s public position for illegitimate private gains. Abuse of power and personal gain can occur both in public and private domains and often in collusion with individuals from these sectors.
The adopted definition is the following: “Corruption is the behaviour of private individuals or public officials who deviate from set responsibilities and use their position of power in order to serve private ends and secure private gains”.
Corruption is the offering, giving, receiving or soliciting of anything of value to influence the action of a public official in the business process, in contract execution or
just in the interest of an individual. Thus it is clear that corruption is the abuse of public office for private interest.
The problem of corruption is as acute today as ever. During a research carried out by TRANSCRIME on corruption in the EU countries some main patterns of corruption and different patterns of criminal responses to it were outlined:
- systematic corruption (Italy, France, Spain and Belgium);
- emerging systematic corruption (Germany and Greece);
- sporadic corruption (Ireland, Austria and Portugal);
- casual corruption (Finland, Denmark, Sweden).
The differences in definition of corruption take on various forms depending on cultural and social context of each country. It is important to study the cultural background in order to discover the constant elements of corruption and thus to take the effective measures. For instance, referring to “corruption prone environment” in Italy we usually talk about a phenomenon that is deeply rooted in the cultural tradition of Italian society as corrupt activities are practiced and accepted by normal citizens.
Corruption is not manifested in one single form: it typically takes at least three broad forms.
Petty administrative or bureaucratic corruption.
Many corrupt acts are isolated transactions by individual public officials who abuse their office, for example, by demanding bribes or kickbacks, diverting public funds or awarding favors in return for personal considerations.
Grand corruption.
The theft or misuse of vast amounts of public resources by state officials – usually members of, or associated with, the political or administrative elite – constitutes grand corruption.
State capture / influence peddling.
Collusion by private actors with public officials or politicians for their mutual private
benefit is referred to as state capture. That is, the private sector “captures” the state legislative, executive and judicial apparatus for its own purposes. State capture coexists with the conventional (and opposite) view of corruption, in which public officials extort or, otherwise, exploit the private sector for private interests.
With reference to legal responses the main criteria used for this analysis were:
a) the definition of the crime corruption;
b) the distinction between passive and active corruption;
c) the definition of passive and active subjects involved in the crime of corruption;
d) sanctions.
The penal codes of countries envisage various levels of corruption crimes according to the position held by the actor. Another distinction is related to the nature of the corruption act, to the functional role of the actor.
Corruption is a collusive agreement between one person illegally offering or promising an advantage and another person receiving this advantage. There are substantial differences in the legislations of countries concerning the abuse of a public function by “passive actors” (the beneficiary of a bribe) and the behaviour of the “active actors”.
The range of sanctions envisaged by penal codes of the corruption crime varies from pecuniary sanctions, incarceration, confiscation of illicite proceeds, dismissal from work.
Some countries adopt more severe penalties in the case of aggravating circumstances.
So what can policymakers do to combat corruption?
Experience strongly suggests that the answer lies in taking an indirect approach and starting with the root causes. To understand why, it is helpful to look at a model that divides countries into three categories – “high”, “medium”, and “low” – reflecting the incidence of corruption. The model also assumes that countries with “high” corruption have a “low” quality of governance, those with “medium” corruption have “fair” governance and those with “low” corruption have “good” governance. And if corruption is about governance and governance is about the exercise of state power then efforts to combat corruption demand strong leadership and ownership and they are to be successful and sustainable.
It is also important to focus on strategies that should be adopted to fight corruption internationally through shared experience with international and national experts and practitioners. The UN’s Global Programme against Corruption (GPAC) was launched by the United Nations Office on Drugs and Crime Prevention. Although different from country to country corruption tends to include the following behaviours: conflict of interest, embezzlement, fraud, bribery, political corruption, nepotism, secretarisme and extortion.
A key factor to be identified and monitored by the Global Trends Study is the public confidence in the state and in its anti-corruption agencies. Without the necessary level of trust the public’s involvement in the fight against corruption cannot be effective since anti-corruption measures, such as public complaints systems, will not be seen as reliable.
Vacabulary notes
to depart from ethics - отступать от этики
civic virtue - гражданская добродетель
illegitimate gains - незаконная прибыль / выгода
to view corruption - рассматривать коррупцию
to abuse power - злоупотреблять властью
collusion - тайный сговор
to deviate from sth. - отступать от чего-либо
to secure - обеспечивать
to solicit - выпрашивать
domain - сфера, территория
casual - случайный, нерегулярный
to take on forms - принимать формы
background - фон
to take preventive measures - принимать привитивные меры
prone - склонность
to be rooted in traditions - уходить корнями в традиции
to accept - принимать
transaction - сделка
to demand - требовать
kickback - возвращение части гонорара / откат
to divert - отводить, отклонять
capture - захват
peddling - мелкая торговля
mutual - общий, совместный
benefit - выгода, прибыль, польза
to extort - вымогать
legal response - юридический, правовой ответ
distinction - отличие, различие
pedal codes - уголовный кодекс
to envisage - рассматривать
to hold the position - занимать положение / пост
to offer an advantage - предлагать преимущество /пользу
substantial - важный
beneficiary - лицо, пользующееся благодеянием
to vary - менять, изменять
pecuniary sanctions - денежные санкции, штрафы
incarceration - заключение в тюрьму
aggravating circumstances - отягчающие обстоятельства
cause - причина
to assume - допускать
the exercise of power - осуществление власти
sustainable - стойкий
nepotism - кумовство
embezzlement - хищение
confidence - доверие
complain - жалоба
to be reliable - быть надежным
to accept, gain, incarceration, to manifest, response, pecuniary sanctions,
various, to vary.
to adopt, to dismiss from work, to emerge, to secure, severe penalties.
to view corruption as the use of one’s public position
to abuse power for private interest
to deviate from set responsibilities
in collusion with individuals
to secure private gains
to solicit anything of value
to carry out research on corruption
to outline patterns of criminal responses
to take background into consideration
to accept casual corruption
to practice grand corruption
to divert public funds
to award favours in return for private benefit
to extort bribes
with reference to legal responses
to envisage substantial differences
to depart________ethics, morality, law and civic virtue
to influence the behaviour of public officials_______business
contract execution or just private interest
a research carried_______by TRANSCRIME_______corruption
corruption takes_______various forms depending_______cultural traditions
referring_______corruption phenomenon that is rooted_______cultural traditions
collusions________private actors_______public officials
according________the position held_______the actor
sanctions vary_______pecuniary ones_______imprisonment
the adopted strategies to fight corruption_______shared experience
the public confidence_______the state and its anti-corruption agencies
- Grand corruption
- Petty corruption
- Passive actor
- Active actor
- What activities are considered to be corrupt?
- What is the adopted definition of corruption?
- What patterns of corruption were outlined after the research carried out
by TRANSCRIME in the EU countries?
- Why do definitions of corruption vary from country to country?
- What three broad forms does corruption manifest?
- What are the criteria used for the analysis of corruption with reference
to legal responces?
- What sanctions are envisaged by penal codes for corruption crimes?
corruption crimes in different countries:
CORRUPT ACTIONS AND INTERNATIONAL LEGAL RESPONSES
The criminal acts represent the two faces of the same coin since corruption
crimes involve more than one actor and presuppose both “active” and “passive”
participants. Their corruption acts are linked with mutually beneficial interest or gain.
The benefits resulting from corruption need not necessarily be of an economic nature
but can also be of an abstract nature such as improved career prospects, speeding up
of paper work, etc.
The penal codes of the UK and Germany in the case of the passive receipt
of a bribe by a public official in order to speed up a service for which he / she is
competent the penalty of a fine is envisages.
On the other hand, a public official who authorizes getting a license, although this is
not under his / her competence, is committing an offence.
In Austria, Denmark, Finland, Germany, the Netherland this passive corruption involving
abuse of the public function is punished with a high penalty since the beneficiary of
the bribe holds a public office and therefore represents the state institution. The Italian
Article 319 cited below says about the punishment for an Act that is Contrary to Official Duties: “The public official who has omitted or delayed an act of his / her
office, who has committed an act that is contrary to his / her duty is punishable with
two or five years of imprisonment”. The same sanctions are envisaged for both the corrupter and the corrupted person in Italy, Finland, Greece, Sweden and Portugal.
The authorities can confiscate illicit proceeds, in some cases inflict disciplinary measures. If the profits gained from corruption cannot be found the Romanian penal law imposes the payment of a sum equivalent to the benefit received on behalf of the corruption person.
The Netherland and Portugal inflict the mildest sanctions for corruption crimes with three and six months of imprisonment. In the Russian Federation alongside the confiscation of illicit proceeds, conspicuous parts of the condemned person’s patrimony are requisitioned.
The Netherland and Denmark do not punish active corruption if this does not induce the public official to abuse his / her duties.
On the other hand Germany punishes this type of active corruption with maximum of two years of imprisonment while for corruption involving abuse of official duties – with the term from three months to five years of imprisonment.
In Austria a circumstance is aggravated if the bribe exceeds 25.000 Austrian shillings, while in Finland an “outstanding” amount of money must be involved.
Denmark, for example, tolerate the payment of small sums for anniversaries.
In some countries recidivist behaviour, the involvement of conspicuous sums of money, the corruption of experts, provocation, extortion and the particular role held by the passive actor are considered aggravating circumstances.
Only Denmark and Sweden have laws that prohibit corruption in the private sector. This is positive and should be imitated by the other states in order to encourage a greater sense of morality and correctness among operators.
of “advantage”.
prohibiting corruption in the private sector?
each of the following words:
phenomenon – phenomena
analysis - analyses
criterion - criteria
securing, to inflict, punished, aggravating, to presuppose,
to deviate, preventive, to abuse, set responsibilities,
to impose, contrary to, to encourage.
1. A corruption crime_____________”passive” and “active” actors.
2. A public official representing the state institution must not_________
his / her duties.
3. If the public official omits, delays or commits the acts____________
his / her duty the official is____________.
4. _____________private gains public officials____________from the___
___________and use their position of power to serve their interests.
5. Penal laws of world countries____________different sanctions for corruption.
6. The involvement of_____________circumstances gives the right___________
more severe sanctions for the abuse of power.
7. International experience can_____________to take the necessary___________
measures to combat corruption.
WHAT DRIVES CORRUPTION?
Although corruption varies from country to country it is possible to identify
some key drivers based on in-depth studies. Some case studies examining the root
causes of corruption in different countries identify the following key corruption
drivers:
The legitimacy of the state as the guardian of the “public interest” is contested. In
highly corrupt countries there is little public acceptance of the notion that the role
of the state is to rise above private interests to protect the broader public interest.
The line between what is “public” and what is “private” is blurred so that abuse
of public office for private gain is a routine occurrence.
The rule of law is weakly embedded. Public sector corruption thrives where laws
apply to some but not to others and where enforcement of the law is often used
as a device for furthering private interests rather than protecting the public interest.
The independence of the judiciary – a pillar of the rule of law – is usually deeply
compromised in highly corrupt countries.
Institutions of accountability are ineffective. In societies where the level of public
Sector corruption is relatively low one normally finds strong institutions of accoun-
tability that control abuses of power by public officials.
The commitment of national leaders to combating corruption is weak. Widespread
corruption occurs in the public sector when national authorities are either unwilling
or unable to address it forcefully. In this case it is reasonable to suspect that it
touches the highest levels of government and that many senior office holders are
not motivated to fight it.
Diven the difficulty of detecting and combating corruption it may be advisable
to attempt reforms that assume some governance capacity such as trying to make
civil servants more accountable for results, bringing government decisions closer to
citizens through decentralization, simplifying procedures and reducing discretion for
simple government tasks such as distribution of licenses and permits.
with the following: It’s a real fact that…., It’s true because…., It might
be so…., I have no objection…., Quite correct…., I don’t agree…., It’s
not so…., On the contrary.
1.In corrupt countries public accept the notion that the state pays more
attention to protection of public interests than private ones.
2.The difference of the notions what is “private” and what is “public” is
obvious for citizens.
3.The rules of law are strongly embedded where the judiciary is independent.
4.Enforcement of law is used to further private interests rather than to protect
private interests.
5.Public sector corruption thrives where laws are applied to everybody who is
Involved into it.
6.Strong institutions of accountability that control abuses of power provide low
level of public sector sector corruption.
7.It is well known that national authorities do their best to address the problem
forcefully and are very successful in detecting corruption.
8.To combat corruption it is advisable to make civil servants accountable of
transparency for results, bring government decisions close and clear to citizens
through decentralization and simplifying all possible procedures.
14. Complete the phrases according to the model: “It is advisable to make govern-
ment operations transparent for citizens” using the content of the read above text.
It’s important…., It’s necessary…, It’s effective…., It’s obvious…., It’s possible….,
It’s illegitimate…., It’s desirable…., It’s significant….
15. Translate the questions into English and give your answers:
1.Какие общие ключевые движущие причины были вскрыты в результате
изучения случаев коррупции в разных странах?
2.На страже чьих интересов должно стоять законодательство государства?
3.Трудно ли различать понятия “частный” и “общественный”? Почему, как
Вы думаете?
4. Какие меры необходимо предпринять в борьбе с коррупцией?
5. Какова роль правительства официальных лиц в борьбе с коррупцией
16. Read the article attentively and write the resume following a few
Tips for Writing Resumes given below.
ANTI-CORRUPTION: UNSHACKLING
ECONOMIC DEVELOPMENT
By Nancy Zucker Boswell, Managing Director, Transparency International (TI) USA,
and Peter Richardson, adviser to TI’s international secretariat
Corruption saps a country’s economy by hampering tax collection, wasting
resources, deterring private investment, discouraging entrepreneurship and
undermining the enforcement of important regulations, says Peter Richardson,
an Adviser to Transparency International and a former director of Transparency
International USA. He says it also disproportionately harms the poor because it
skews economic planning against investments in social services and because the
poor can least afford to bribe.
“The eligibility requirement of a demonstrated commitment to limit corruption
and promote good governance can be a major step toward changing the incentive
system for development assistance,” says Nancy Zucker Boswell, TI-USA’s mana-
ging director. “It will send an important signal that there will be added costs to
not addressing corruption – ineligibility for assistance.” Boswell and Richardson
argue that the policy changes should start with preventive measures such as civil
service reform where needed and ensuring transparency of all laws and regulations.
They add that countries need to implement a criminal law system where there
“independent prosecutors to bring cases and a competent and independent judiciary
to impose sentences.”
There is a global consensus that corruption in government and business inhibits econo-
mic growth and can perpetuate poverty. Because financial resources are fungible and
corruption drains them, economic assistance to countries that have not demonstrated a
commitment to reducing corruption is unlikely to lead to sustainable development.
This conclusion has led bilateral and multilateral development assistance agencies to
reconsider the criteria for aid recipients and to move toward a greater emphasis on
good governance.
Countries must show by their actions that they are serious about reducing corruption.
Such a “demonstrated commitment” is necessary to establish that countries have the
requisite determination to spur their own economic development and poverty reduction
and to ensure that the intended benefits of such economic assistance will not be dis-
sipated.
CORRUPTION IMPAIRS DEVELOPMENT
Efforts to quantify the economic loss due to corruption are necessarily speculative,
but numerous independent estimates have been made. In an estimate by the World
Bank, which the Organization for Economic Cooperation and Development (OECD)
considers conservative, the annual cost of corruption was calculated at more than
$80 billion worldwide – more than the total of all economic assistance.
Large bribes sap a country,s economy, and small bribes - for example, “facilitation”
payments to speed up routine government actions – disproportionately harm the poor.
Where corruption is pervasive it deters the best people from entering government
service, making corruption self-sustaining; and it provides an incentive for those
who have joined the civil service to pursue personal enrichment rather than the
public good. This reduces respect for the law, can facilitate crime and generates cynicism which feeds the expectation that extortion is inevitable and bribery nece-
ssary.
Tax collection becomes more difficult in highly corrupt environments, making higher
tax rates a necessity to obtain required revenue. This can create an incentive for ca-
pital flight.
Pervasive corruption can erode political stability, deterring private foreign and domestic
investment. Even where stability is not a factor, the high likelihood of extortion dis-
courages such investment.
Corruption is not the sole cause of countries’ persistent poverty. Poor natural resource
endowments, poor economic management, poor education systems, inadequate infrastructure, poor incentives for farmers and business, poor administration, and the
shortage of savings and capital for investment often contribute. But large-scale corrupt-
tion invariably impairs development.
WHAT CAN BE DONE ABOUT IT?
While it is unlikely to be totally eliminated, large-scale or pervasive corruption is not
inevitable in any country. Movements over time in country rankings on the Transpa –
rency International Corruption Perception Index illustrate that corruption can be tackled.
Given the scope of the problem, a holistic approach and a long-term perspective to
anti-corruption reform are essential. Making such an approach operational requires leaders
with the political will and a broad mandate from civil society, including the private sec-
tor. The participation of all these stakeholders – government, civil society, and the private
sector – is essential.
Within many countries, these groups have set priorities, identified targets of opportunity,
built sustained pressure, and monitored the progress of reform.
Diverse conditions, which exist from one country to another, make it impossible to pre-
scribe a universally applicable menu of necessary reforms or any standard sequence for
introducing them. Nevertheless, the most urgent reform starts with instituting preventive
measures.
The most critical preventive measure is to publish in an accessible manner all laws,
regulations, administrative and judicial decisions, procurement, campaign finance and
other routine information. It should provide opportunities for public participation and
transparency in the decision-making process before actions are taken.
Preventive measures should also include instituting codes of conduct and conflict-of-
Interest standards for public officials. Higher-ranking officials should publicly disclose
their assets on a periodic basis in order to minimize opportunities for illicit enrichment.
Beyond the preventive measures, there is a role for criminal law provided there are
independent prosecutors to bring cases and a competent and independent judiciary to
impose sentences.
Additional public sector reforms will also include: civil service reform, providing com-
pensation that permits a reasonable standard of living, strict rules, broad publication and
public oversight to promote transparency and accountability in public-sector procurement.
No anti-corruption strategy will be successful without the participation of the private
sector. Companies should establish and maintain an effective system of internal controls,
books and records that accurately reflect their transactions and disposition of assets. As
a general matter, all professionals, such as accountants, auditors and attorneys, should
have and enforce standards and codes of ethics and an effective accreditation process.
Obviously, carrying out such an ambitious range of reforms can be complex and will
require a long-term commitment. It will require technical and financial capacity and,
above all, political will.
CONCLUSION
The requirement for a demonstrated commitment to limit corruption and promote good
governance will be a major step towards changing the incentive system for development
assistance. In countries that do meet the requirement, assistance can help promote reform
because it requires governments, businesses and civil society to work together in a const-
mic development and the productive use of assistance. Realizing this potential will re-
quire field-based assessments of the state of corruption in a country and the effective-
ness of projects, and careful attention to auditing and accountability to ensure that funds are used as intended. These promises have a profound impact on future success in com-
bating corruption.
A few tips for writing resumes
When making a resume it may be of some help to keep to the following scheme.
1.Give some basic information about the article:
- The title of the article is………
- The article is headlined…….
- The author of the paper is….(is not mentioned)
- The paper was published in……
2.State in one or two sentences the main idea of the article:
- The paper raises the problem concerning……
- The paper deals with / touches upon / is concerned with the problem of….
- The review paper includes information concerning…….
- The main / chief purpose / aim of the paper is…….:
a) to give the reader some information on……
b) to determine…..
c) to examine certain problems connected with / related to / linked with…..
d) to provide the reader with some materials on…….
3.Consider the problems mentioned in more detail:
- In particular the author claims / stresses / underlines / emphasizes /
lays a special emphasis on / points to the problems of / points out that/
describes…..in more detail / considers / asseses the role of / reckons / states/
highlights…..in more detail
- The author attaches the primary importance to the problem of…..
- The author draws the attention of the reader to the problem of…..
- As far as the problem of…..is concerned…
- According to the author
4.Express the main idea but more powerfully:
- In conclusion……
- The author comes to the conclusion that…..
The author arrives at the conclusion that….
- The evidence given suggested offered provided by the author reveals…..
17. Oral work:
1. Comment on the statement: Corruption is the abuse of public office
for private interests.
2. Speak about existing patterns and forms of corruption.
3. Comment on different causes of corruption.
4. Make up a dialogue discussing legal punishment of corruption crimes.
5. Discuss measures taken by state governments in combating corruption.
6. Speak about your approach to the problem of corruption.
BRIBERY – AN INEVITABLE EVIL?
Preparation:
What, do you think, all these words and phrases have in common?
payments be classified in anyway?
_____________________________________________________________
Students taking business courses are sometimes a little surprised to find that lec-
tures on business ethics are included in their syllabuses of study. They often do not
realize that, later in their careers, they may be tempted to bend their principles to
get what they want; perhaps also they are not fully aware that bribery in various
forms is on the increase in many countries, and in some, this type of corruption has
been a way of life for centuries.
In dealing with the topics of business ethics, some lecturers ask students how they
would act in the following situation: suppose you were head of a soft-drink company
and you want to break into a certain overseas market where the growth potential for
your company is likely to be very great, indeed. During negotiations with government
officials of this country the Minister of Trade makes it clear to you that if you offer
him a substantial bribe you will find it much easier to get an important license for
your goods, and you are also likely to avoid “bureaucratic delays”, as he puts it. Now
the question is: do you pay up or stand by your principles.
It is easy to talk about having high moral standards, but, in practice, what would
one really do in such a situation? Some time ago the British car manufacturer, British
Leyland, was accused of operating a “slush fund” and of other questionable practices
such as paying agents and purchasers with padded commissions, offering discounts and
making payments to numbered bank accounts in Switzerland.
The company rejected these allegations and they were later withdrawn. Nevertheless, at
this time, there were people in the motor industry in Britain who were prepared to say
in private: “Look, we’re in a wheeling-dealing business. Every year we’re selling more
than a 1.000 million worth of cars abroad. If we spend a few million greasing the
palms of some of the buyers, who’s hurt? If we didn’t do it, someone else would”.
It is difficult to resist the impression that bribery and other questionable payments
are on the increase. Indeed, they seem to have become a fact of commercial life. To
take just one example, the US Chrysler Corporation disclosed that it made questionable
payments of more than $ 2,5 million between 1971 and 1976. Other US companies
made the revelation that they also had made dubious payments of one kind or another
- bribes, facilitating payments, extra discounts, etc.
For discussion purposes we can divide these payments into three broad categories.
The first category consists of substantial payments made for political purposes or
to secure major contracts. For example, the US ITT corporation (International Telephone
and Telegraph) offered a large sum of money in support of a US presidential candidate
in one of Eastern countries. This same company, it was revealed, was ready to finance
efforts to overthrow the Marxist government of Chile whose President was Salvadore
Allende. In this category we may also include large payments made to ruling families
or their close advisers in order to secure arms sales or major construction contracts.
In a court case involving an arms deal with Iran, a witness claimed that $ 1 million
had been paid by a British company to a “go-between” who helped clinch a deal for
the supply of tanks to this country. Other countries have also been known to put
pressure on foreign companies to make donations to party funds.
The second category covers payments made to obtain quicker official approval of
some project: to speed up the wheels of bureaucracy. An interesting example of this
kind of payment is provided by the story of a sales manager who had been trying
for some months to sell road machinery to the Minister of Works of a Caribbean
country. Discovering that the Minister was a bibliophile, he bought a rare addition of
a book, slipped $ 20.000 within its pages, then presented it to the Minister. This man
examined the contents, then said: “I understand there is a two-volume edition of this
work”. The sales manager who was quick-witted replied: “My company cannot afford
a two-volume edition, sir, but we could offer you a copy with an appendix”. A short
time later the deal was approved.
The third category involves payments made in countries where it is traditional to
pay people to facilitate the passage of a business deal. Some Middle East and Far
Eastern countries would be included on this list.
A common type in this category is the “facilitating payment” – usually a smaller sum
of money - made to certain customs officials to clear cargoes. The payment may be made by a foreign company to ensure a tender is put on a selective contract list or
the company may pay so that an import license for essential equipment is approved.
Is it possible to formulate a code of rules for companies which would outlaw
bribery in all its forms? The international Chambers of Commerce (ICC) favours a
code of conduct which would ban the giving and seeking bribes. This code would
try to distinguish between commissions paid for real services and padded fees.
A council has been proposed to administer the code.
Unfortunately, opinions differ among members of the ICC concerning how to
enforce the code. The British members would like the system to have enough teeth
to make companies behave themselves. The French delegates think it is the business
of governments to make and to impose law; the job of a business community like
the ICC is to say what is right and wrong, but not to impose anything.
In a well-known British newspaper a writer argued that “industry is caught in
a web of bribery” and that everyone is “on the take”. This is probably an exaggera-
tion. However, today’s businessman, selling in overseas markets, will frequently meet
situations where it is difficult to square his business interests with his moral consci-
ence.
Vacabulary notes
to bend one’s principles - отклоняться от принципов
to be aware of something - сознавать что-либо
to increase - увеличиваться / расти
to break into a market - пробираться на рынок
to offer a bribe / a discount - предлагать взятку / скидку
to avoid bureaucratic delays - избегать бюрократических проволочек
to stand by one’s principles - придерживаться принципов
to be accused of questionable practices - обвинять в сомнительных действиях
to grease the palm - дать взятку / “подмазать”
to facilitate the passage of a deal - способствовать прохождению сделки
to secure contracts - обеспечивать (охранять) контракты
to reveal - обнаруживать /показывать
to clinch a deal - заключать сделку
to make donations - делать денежные пожертвования
to speed up the wheels of bureaucracy - ускорить прохождение бюрократии
to obtain approval of a project - добиваться одобрения проекта
to approve a deal - одобрить сделку
to formulate a code of rules - формулировать свод правил
to outlaw bribery - объявить взяточничество вне закона
to favour a code of conduct - поддерживать свод правил поведения
to ban the giving and seeking of bribes - запретить дачу и вымогательство взяток
to impose law - налагать обязательства по закону
to soften up an official - смягчить сопротивление чиновника
padded fees - раздутые вознаграждения /гонорары
to enforce the code - принуждать к исполнению свода законов
- to be aware_______bribery
- to break________an overseas market
- to get a license_______goods
- to stand________principles
- to be accused________a “slash” fund
- to divide payments________categories
- to make donations________funds
- to soften________a government official
1.Dealing with the topic of business ethics students become fully aware that
bribery in various forms is on the increase in many countries.
2.The offered bribe to a government official can help businessmen to avoid
bureaucratic delays and to settle the problems easier.
3.A company that plans to break into a certain market promising the growth
of profit is ready to spend millions greasing the palms of officials.
4.Manufacturers and businessmen financing official approval of their projects
speed up the wheels of bureaucracy and obtain the provided positive effect.
5.Facilitating the passage of a business deal a softened up official puts it on
a selective list and controls speeding up its passage.
6.Large payments made to support certain political purposes (elections, for
example) are also considered as bribes.
7.There must be a code of rules and commitions concerning how to enforce
the code and outlaw bribery.
- stand by your principles
- “slash” fund
- to grease the palm
- to clinch a deal
1.What information did students get to know taking courses on business ethics?
2.What purpose did the lecturers have in asking students the questions about
the soft-drinks company and the British car manufacturer – British Leyland?
3.What situation in commercial life do these examples manifest?
4.What three categories are these payments or bribes divided into?
5.What political purposes does financial support usually cover? Give examples
to illustrate it.
6.What are payments or bribes of the second category made for?
7. What cases does the third category of bribes involve?
8. What steps do the International Chambers of Commerce (ICC) recommend
to take to fight with bribes?
9. Could you explain the difference of opinions existing within the ICC
concerning how to enforce the code?
of the Complex Subject with the infinitive:
1.People are known to bend their principles to get what they want.
2.Bribery is reported to be increasing at present in many countries.
3.Businessmen are likely to avoid “bureaucratic delays” greasing the
palms of officials.
4.Bribery seems to have become a fact of commercial life.
5.Substantial payments often happen to support political purposes.
6.Dubious payments turn out to speed up official approval of some project.
7.Bribes are certain to facilitate the passage of a business deal.
8.A code of rules is sure to outlaw questionable payments and bribes.
each blank space:
1.In many countries it is common to pay someone to ease the passage of
a business_________.
2.For a company__________into international markets for the first time
the___________to use bribery is very great, indeed.
3.In many cases the company will have to pay inflated__________to an
agent or make other such payments if an order is to be__________.
4.Later, there will be the routine handout to make sure the consignment
of goods is___________through customs.
5.Although an international business community like the ICC can give
guidelines to companies, it cannot___________bribery by its own efforts.
6.It is up to governments in those countries where bribery is___________
to help stamp out this___________by bringing in laws against corruption
and making sure these are___________laws. 1
the word in italics:
Ethics
1.Giving a bribe to secure a contract would be considered___________by
an honest businessman.
2.When working under pressure someone might find it hard to do what
is_____________correct.
Corrupt
3._______________can in some countries become the normal ingredient of
an aggressive sales policy.
4.Some officials will under no circumstances accept bribes. They are__________.
5.He was charged with____________accepting unauthorized payments.
Moral
6.It is easy to___________when one has never been in a position to be
Tempted.
7.She is a person of very high____________.
8.One must inevitably question the_____________of his action.
9.To offer money for corrupt purposes is______________.
10.Having no sense of what is right or wrong, he is in fact totally___________.
20
Approve
11.Securing official____________for the import of goods can be costly
in some countries.
12.Tenders for contracts have to be submitted in the____________form.
13.Many authorities express public____________of bribery, yet do little
to try to stamp it out.
14.The goods will be sent to you on_____________.
a) What is important when somebody wants to succeed in business?
- it is essential to learn the art of giving bribes
- to break into a market
b) What is important to know about the ways of doing honest business?
- to compromise businessman’s personal ethics for the sake of his/her
company’s interests
- to have high moral principles
9. Role play:
You are a lawyer of a company which markets cars in Russia and over-
seas. You have recently learnt, to your surprise, that the sales department of
the company has been operating a “slush fund”. From this fund secret payments
have been made to individuals setting up deals or who have, however indirectly,
contributed to the winning of a contract. You are worried and much upset to
learn about the existence of this fund, especially since the frequency and size
of such payments seem to have increased greatly in the last two years.
Accordingly, you call the Marketing Manager of the company to give him a
piece of your mind and tell him that these questionable payments must cease
immediately. To your surprise he / she does not agree with you……..
Make up a dialogue between the lawyer of the company and the Marketing
Manager.
- Which is worse, in your opinion, to offer or to accept a bribe? Why?
- Which, do you think, are the most corrupt countries in the world?
- Which, do you think, are the least corrupt countries? Give your reasons.
Britain is seen as more corrupt than seven other European countries including
Germany according to an authoritative annual league table released by the Berlin-
based Transparency International group. Transparency International is a private group
set up in 1997 to fight corruption and bases its information on seven international
surveys of business people, political analysts and the public.
The cleanest countries were Denmark, Finland and Sweden, which moved New
Zealand from the top position. Britain came relatively low, in 14-th position, its
image apparently damaged by stories of sleaze. It was overtaken by Germany,
although the Germans still tolerate companies which hand out bribes to foreign
contractors.
Germany has been under pressure, especially from the United States, to plug legal
loopholes which allow German businessmen to write off bribes abroad against tax.
Yet, both Britain and even the United States, which has strict legal barriers against
international bribery, are behind the Germans. In part, this is, probably, because of
the nature of the survey which does not track such areas as company-to-company
bribery.
The most corrupt countries are regarded such as Nigeria, followed by Bolivia,
Colombia and Russia. The chairman of Transparency International, Peter Eigen, issued
a warning against focusing on Third World corruption.
“Corruption is perceived to be greatest there but I urge the public to recognize that
a large share of the corruption is the product of multinational corporations, headquar-
tered in the developing world and the countries in transition”. The Third World, in
other words, would be less corrupt if developed states stopped offering bribes.
Belgium, for example, is now regarded as more corrupt than Mediterranean nations
such as Portugal, Spain and Greece.
“Every day that the poor scores in the Corruption Perception Index are not being dealt with means more impoverishment, less education and less healthcare”, said P.Eigen.
Money was diverted from development into over-priced contracts.
A study by Harvard associate professor Shang-Jin Wei found that a rise in cor-
ruption levels had the same effect on foreign investments as raising the marginal tax
rate by more than 20 percent. Awareness is a first step to fighting or reducing cor-
ruption”, he said.
From Roger Boyes in Bonn. The Times.
Resumes” (consult page 14)
HOW TO GREASE A PALM
The Economist December 23-rd 2006
Corruption has its own elaborate etiquette
Give people power and discretion, and whether they are grand viziers or border
guards, some will use their position to enrich themselves.
For most people in the world, though, the worry is not that corruption may slow
down their country’s GDP growth. It is that their daily lives are pervaded by end-,
less hassles, big and small.
In a testament to most people’s basic decency, bribe-takers and bribe-payers have
developed an elaborate theatre of dissimulation. Even in countries where corruption
is so common as to be unremarkable and unprosecutable – and even when the trans-
action happens far from snooping eyes – a bribe is almost always dressed up as some
other kind of exchange. Though most of the world is plagued by corruption, even
serial offenders try to conceal it.
One manifestation of this is linguistic.
Surprisingly few people say: “You are going to have to pay me if you want to get
that done”. Instead, they use a wide variety of euphemisms.
A term, used in India, is “speed money”: paying it can get essential business permits
issued considerably faster.
Some type of euphemism dresses up a dodgy payment as a friendly favour done by
the bribe-payer. Nigerian policemen, for example, are known to ask for “a little some-
thing for the weekend”. A young Canadian was offered to resolve his difficulty with
some chai, which means both “tea” and “bribe”.
Along with the obscurantist language, bribe-taking culture around the world of-
ten involves the avoidance of physically handing the money from one person to an-
other. One obvious reason is to avoid detection, which is why bribes are known as
“envelopes” in countries from China to Greece. But avoidance of a direct handover
is common even where there is no chance of detection. There will always be some
officials who will take money right from a bribe-payer’s hands, but most seem to
prefer to find some way to hide the money from view. A bribe to a border guard
may be folded into a passport. A sweetener to a traffic cop is often placed in the
ticket-book that is handed to the driver.
Yet corrupt practices in America and western Europe are nothing like as
pervasive as in other parts of the world. There is no single cultural factor that
inclines a society towards corruption, but economic factors play a big part. Most
clearly, poverty and bribery go together.
But which causes which? Mr. Wolfowitz’s crusade at the World Bank is
based on the idea that corrupt countries fail to develop. But several countries in
Asia have grown rapidly at a time when cronyism was common, including Indone-
sia and South Korea in their time. Today’s most conspicuous example is China with
its explosive growth. Polls consistently show that corruption is the top complaint of
ordinary Chinese. From time to time the Chinese government executes particularly
egregious offenders, to no apparent avail. And yet foreign investors cannot pile into
the country fast enough. Although most economists agree that corruption slows deve-
lopment, a corrupt country is nevertheless capable of rapid growth. Countries may be
corrupt because they are poor, and not the other way round.
Jakob Svensson, an economist at Stockholm University, has cut through cultu-
ral stereotypes to search for hard data on corrupt economies. Among the factors he
has found that correlation with corruption is the overall education level of the adult
population. One more factor is openness to imports (measured by imports as a pro-
portion of GDP), which is linked with opportunities for smuggling. Another is free-
dom of the press on the hypothesis that independent journalists will expose, and
thereby curtail, corruption. Mr. Svensson found clear correlations between all these variables and the overall level of corruption. Corruption thus offers the confirmation
that where there is a lot of government, there is a lot of bribery: “the government is best which governs least”.
Калинина Э. Н.
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