by Bob Schmidt

Created on: April 23, 2008

Dealing with corruption in other countries when involved in international trade is an area that requires study, and intelligent decision making. Several guidelines that might be helpful are investigated below, and may help those faced with this question.

Rules of the road:

Corruption is not always easy to avoid. Within some countries, if a local agent is not hired to represent one's interests, business is not going to happen. The reality is that these local folks require a slush fund from which local "arrangements" are made. This concept of paying-off the right people is part of what moves business in a surprising number of countries.

Ethics:

Dealing with corruption requires an examination of one's ethical flexibility. There is the reality that many countries view bribes as part of the art of doing business. Not only is it accepted, it is expected. "Greasing the skids" is commonplace at international levels, and competing successfully may depend upon it. Naturally, the cost of bribes is considered in cost estimates of transactions that will include the expected gratuities.

Even though many western businesses operate in what they view as an ethical manner, in many countries our concept of ethics is quite foreign to them. Just as we all have different viewpoints on morality, we also have different viewpoints on ethics.

Analyzing Risk:

No business person can afford to not be aware of legal issues as they relate to corruption. What is corrupt is not always illegal. Careful study of international law, and legal business practices are a must in the tricky world of international business.

Hasty Decisions:

Before making decisions based upon individual judgments of corruption, consider the norms for the country involved. Occasionally, our own strict views of morality complicate the issue at hand. It would be a shame to judge someone as being corrupt, when our own preconceived ideas may be the source of that judgment. This is a slippery slope when it comes to business, and should be navigated very carefully.

At the end of the day, we are only in total control of our own morality. Someone else's corruption may be visible, but not something within our control. That becomes the moment of truth for all of us. Sometimes we must accept the cultural norms of others, even though we find it distasteful.

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