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by Zarathustra_ 2554 days ago
I will preface this by saying I am not defending Wal-Mart. However, it is somewhat a cost of doing business in many countries. I have spoken with close friends from both Brazil, Mexico, and India, and it is very much part of how business is done there. I have also heard from numerous acquaintances that this is the case in China, including people who did business there. This does perhaps not justify Wal-Mart's behavior, but it provides some context and reminds us that companies (even those the size of Wal-Mart) have few options. Besides, promising to bring jobs to a certain area leads to more tax revenue, which in turn leads to fatter pockets for politicians. We delude ourselves to pretend we are perfect.

However, America has the Foreign Corrupt Practices Act, which does mean this could be more complicated. We recognize that someone else jumping off a bridge does not justify our doing so. And though we still have problems at home, we do try to police them. When a corruption scandal breaks, politicians usually are forced out of office; compared to many other places, this is good.

1 comments

I worked at a place where the anti-bribery training covered corner cases where US law not only allows for bribery but you can write it off as a business expense. I was pretty shocked by this.

> Regarding payments to foreign officials, the act draws a distinction between bribery and facilitation or "grease payments", which may be permissible under the FCPA, but may still violate local laws. The primary distinction is that grease payments or facilitation payments are made to an official to expedite his performance of the routine duties he is already bound to perform.

Interesting, I wasn't aware of that. That seems somewhat like a reasonable loop hole, though I can easily see how it could be abused. I appreciate the information.
I see this happen in Western institutions as well where if you want faster processing you have to pay some extra fee.