Costs and Benefits of Bribery
Engaging in bribery is a controversial practice that is considered as a crime in most developed countries. However, it has its costs and benefits to a business which contribute to its classification as a crime by many countries while still being practiced by many. The costs of bribery to a business include dropping of the employee`s morale when a company bribes its way to top. This is one of the major cost of bribery on a business which according to the Serafeim, employees are subject to morale reduction when a firm is involved in legal issues. In most cases, a firm identify of bribery practices is placed at the focus of the authority and subjected to screening which makes the employees uncomfortable. Low …show more content…
According to Schubert and Miller (2008), Reinhard Siekaczek led Siemens to committing both bribery and recording keeping criminal acts that were against the provisions of the FCPA. According to Schubert ad Miller (2008), Siemens spent more than $40million for four years since 2002 to 2006 to finance bribes. The most famous bribery cases by Siemens include the payment of a $12.7million bribe to Nigerian government officials for contracts and $40million bribe to Argentina for a $1billion contract among