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Stopping Bribery and OECD Antibribery Convention (Abou-

Alsamh, 2007).
Extortion
In 2003, Transparency International
Philippines identified the Philippine National
I. Is there bribery in the cellular Police (PNP) as the most corrupt agency.
phone industry? People interviewed by Transparency
Alcatel, the French multinational International Philippines admitted to having
company, best known for its wireless and bribed the police to avoid arrests
Internet equipment, has been linked to (www.aljazeera.com).
bribery charges in Costa Rica. The bribery
case involves high ranking government
III. Is the government the closest
officials, particularly in the Costa Rican
partner of business?
Institute of Electricity (ICE), who were
allegedly paid to persuade them to purchase The government (public) is the closest
the country’s cellular telephone network partner of business (private) when it comes
from Alcatel. * (company logo) to good governance, transparency, and
As a result of the corruption scandals, human development.
Costa Rica’s ICE has blacklisted Alcatel The identical objective of business and
(NYSE: ALA) and another company Ericsson government is to bring about a better
from future equipment contracts society and strong republic. This
(Oppenheimer, 2004). partnership, nonetheless, has always been
open to corruption, fraud, bribery, and graft.
II. What is the IMPSA case in the
Philippines?
IV. What is bribery?
In the Philippines, the Argentinian
company Industrias Metallurgicas Bribery is committed when a company
Pescarmona Sociedad Anonima (IMPSA) is or an individual gives a gift or makes a
alleged to have made pay-offs totaling promise to any person in authority for the
US$14 million to secure the US$470 million purpose of influencing that official.
build-rehabilitate-operate-transfer contract A bribe can be in the form of money or
for the Caliraya-Botocan-Kalayaan favor given or promised in order to influence
hydroelectric power plant, which was the judgment or conduct of a person in a
awarded in 2001. The irony is that IMPSA is position of trust.
a member of the World Economic Forum’s
Partnering against Corruption Initiative
(PACI) and Argentina is a signatory to the
V. What is an example of bribery in a * When the grease money is initiated
small scale? by the payer or giver, it is bribery and the
When a thriving store is located in a initiator is a briber who usually is the
building with no loading or unloading business person.
facilities or spaces, the delivery trucks will * When the grease money is initiated
have no choice but to unload stocks in the by the payee or receiver, it is extortion and
main road in front of the building entrance. the initiator is an extortionist.
There is no other way for his store to
Who is more accountable: the
continue doing business, that is, accomplish
entrepreneur who bribes in order to do
the process of loading and unloading, than
business or the government official who
to bribe the MMDA men (somewhere
extorts.
between P500 and P600 per truck). In turn,
these officials can ignore the 10- to 15
minute “artificial” traffic caused by each
VIII. What are the "unhappy
delivery, 2-3 times a day. consequences” of bribery and
extortion?
VI. Is it legal or moral? * Protective walls are constructed
around bribers, thus preventing an
Bribes generally invoke payments to
enterprising newcomer from entering the
someone to pervert the course of business
market.
by taking improper or illegal action.
* Investor’s confidence in the rule of
It is a form of political corruption and
law is undermined, prompting them to build
is generally considered immoral.
a higher political-risk premium into their
* Republic Act No. 3019, or otherwise call as investment calculations.
the Anti-Graft and Corrupt Practices Act is
* Bribery and extortion are a betrayal
the policy of the Philippine Government, in
of public and private trust in which the
line with the principle that a public office is a
damage inflicted goes far beyond the
public trust, to repress certain acts of public
material value of the bribe.
officers and private persons alike which
constitute graft or corrupt practices or which
may lead thereto. IX. Which countries in Asia were most
corrupt from 2005 to 2012?
VII. What is moral accountability of * Philippines was ranked one of the
briber and extortionist? most corrupt countries in Asia based on polls
The intention of both is the same: to of business executives tending to illustrate
unduly influence a business transaction by the fact that poorer countries are more
fraudulent means.
inclined to corruption, fraud, bribery, and
extortion.

X. Can business avoid conflicts of


interests?
* Say no to the giving or receiving of gifts,
payments, entertainment or benefits
whenever this can influence a decision to be
made
* Don’t offer gifts, benefits, or hospitality to
officials during periods when important
decisions are to be made
* Don’t differentiate between giving or
receiving gifts, payments, entertainment or
benefits in your private capacity or as an
employee of your company
* Say no to giving or receiving of gifts,
payments, entertainment or benefits if this
does not take place publicly or is not spoken
about publicly
* Customs regarding tips and fees differ
depending on the culture. Whenever a tip is
customary and this is fair reward for a
genuine service is acceptable

XI. How can social responsibility


blend with culture?
(1) There are universal values.
(2) Don’t confuse bad practice with culture.
(3) Respect culture without sacrificing values
(4) People want those companies with
strong CSR policy.