Methods of bribery in multinational corporations
| DOI | https://doi.org/10.1108/JFC-05-2018-0049 |
| Published date | 07 October 2019 |
| Date | 07 October 2019 |
| Pages | 1078-1084 |
| Author | Fabian Maximilian Johannes Teichmann |
Methods of bribery in
multinational corporations
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –This paper aims to investigate how bribery is conducted in multinational corporations. In
particular,sources of funding and methods of transferring bribes are investigated.
Design/methodology/approach –In all, 100 interviewswere conducted with criminals and white-collar
crime preventionexperts, and responses were subjected to qualitative contentanalysis.
Findings –The interviews and survey revealed concrete techniques for creating funds for bribery and
transferring bribes to counterparties. The results indicate that the compliance mechanisms aimed at
preventingbribery in multinational corporationscan be easily circumvented.
Research limitations/implications –This study’sfindings were limited to the perspectives of 100
interviewees. Hence, it is possiblethat a study with a larger sample conducted in different countries or at a
differenttime could have yielded different results.
Practical implications –Identifying the concrete methods of funding and transferring bribes should
provide both compliance officers and legislators with valuable insights into criminal activity. By better
understanding the specific steps taken by criminals, compliance officers should be able to more effectively
combat bribery.
Originality/value –Whereas the prior literature has focused on the organizations and mechanisms
involved in combating bribery, this paper instead explores how criminals avoid detection by taking into
accountexisting compliance mechanisms and criminal perspectives.
Keywords Compliance, Corporations, Anti-bribery policies, Bribery, White-Collar crime,
Criminals
Paper type Research paper
Introduction
Bribery continues to be a challengefor multinational corporations. Even though it has been
outlawed owing to its multiple negative consequences, bribery continues to be common in
many parts of the world. Hence, multinational corporations frequently have to deal with
their employees being asked for bribes. This leads to a real dilemma for multinational
corporations. On the one hand, they need to comply with the applicable laws in their home
countries. On the other hand, they need to do business in countries in which bribery is
widespread and often expected.
However, there are many good reasonsbribery has been outlawed. Bribery is commonly
associated with an inefficientuse of resources, unfair income redistribution, and secessionist
responses. In addition, it endangers private property rights and can be considered a
significant barrier to attracting foreign direct investment. It is hence often considered an
obstacle to development. Governments all around the world have passed laws against
bribery.
Consequently, multinational corporations are obliged to fight this phenomenon in order
to avoid being penalized by law enforcement agencies. Most multinational corporations
have developed and implemented strict anti-bribery policies and compliance mechanisms;
however, bribery continues to exist in many firms. To eliminate bribery in multinational
JFC
26,4
1078
Journalof Financial Crime
Vol.26 No. 4, 2019
pp. 1078-1084
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2018-0049
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