Do Chinese Guanxi and Brazilian Jeito Violate the FCPA?
Clearly the FCPA is directly in conflict with business cultures where the exchange of favors and the bending of rules is part of the normal business process involving government officials or politicians. In countries such as China and Brazil, where “Guanxi” and “Jeito” are necessary in order to survive there is a range from the most minimum to the more extreme exchange of favors or payment to facilitate the conduct of business. Some of the more extreme payments are considered to be corruption even in these countries. However, the economics of the entire business system and compensation structure is based on Guanxi and Jeito. There is no alternative. The FCPA was written based on our contract-based method of accomplishing business dealings; not on the relationship-based style that is prevalent in developing countries. It supports a system where business is professional and functions on the success of the embodied business terms and conditions, and not dependent on personal relationships
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