Is procurement to blame for corruption business practices in low cost countries?
The Rio Tinto bribes-for-secrets case has become a landmark for corruption and risk management; exposing business practices many of us consider highly unethical. Commenting the story for CNN (Wake-up call for foreign firms in China); risk management consultant Peter Humphrey points out several lessons that can be learned from the case: • First, corrupt practices must be strictly monitored and curbed in order to avoid trouble both with Chinese law and home-country anti-bribery law. • Second, companies clearly need to gather business intelligence and competitor intelligence but they must do so through legal and ethical means and not through bribes. • A closely-related lesson for multinationals is what we have learned about the interests that China considers “strategic”. Now, we’re all aware that corruption is wide-spread in China (as it unfortunately is in many parts of the developing world) the question is how we should deal with the fact. SIDA – the Swedish International Development Co
Related Questions
- Doesn’t the game create a negative image of business practices in Third World Countries and how do people from Third World Countries feel about this negative image?
- Is procurement to blame for corruption business practices in low cost countries?
- What are the main differences in business practices in different countries?
