TOPICS: Bribes, Business Ethics, global
SUMMARY: Among the issues discussed at the Group of 20 nations summit last week in St. Petersburg, Russia, was corruption. The anti-graft working group at the summit said the body adopted guiding principles on enforcing foreign bribery offenses, and governments agreed to prevent corrupt officials from entering member countries. In a progress report, the working group said it endorsed the non-binding "G20 Guiding Principles on Enforcement of the Foreign Bribery Offense" and "Guiding Principles to Combat Solicitation," both of which it said identify measures that have been successful at enforcing anti-foreign bribery law. "We will promote these principles in our national governments, and with our business communities," the progress report said. In addition, a 27-page declaration (pdf) issued by the G-20 said it established a network to "share information and cooperate" to deny corrupt officials entry into a member country.
CLASSROOM APPLICATION: G-20 nations are the largest economies, including 19 countries and the European Union. This group has adopted foreign bribery enforcement principles based on cooperation and the exchange of information. In addition, there is an agreement to deny corrupt officials entry into a member country. Bribery involves offering something (usually money) in order to gain an illicit advantage. While bribery is defined as a non-lawful act, it is often a grey area when government officials are given small gifts or promotional items. The guiding principles have been developed to provide rules that each of the country agrees will diminish bribery and corruption.
QUESTIONS:
1. Why do you think the world's largest economies feel that bribery is such an important issue that there needs to be cooperation and agreed-upon principles to prevent this type of misconduct?
2. Why do you think the G-20's agreement to exchange tax information will be a major advancement in the battle against tax evasion?
3. What are the advantages of international cooperation in preventing corruption?