Healy the James R. Williston Professor and Senior Associate Dean for Res. Iearch saw a unique opportunity to examine an elephant in the room in the business world. The Unit Nations estimates that roughly a trillion dollars in bribes is paid annually worldwide. This increases the cost of investment in developing countries by at least percent. And yet companies are mostly silent on the subject. First they feel strong pressure to perform. Second internal controls within their companies are not that strong. And finally their companies allow them to rationalize their behavior.
The thing that struck me
How little information there is on corruption because no one wants to talk about it says Healy author of the multimia case Fighting Corruption at Siemens. In part that s because it s illegal—no one wants to admit they were breaking the law. But there is also another unspoken Czech Republic Email List reason for the silence he says the sense that it is just the cost of doing business a necessary evil that must be borne if companies want to seriously contend for contracts in developing countries where the rule of law isn t as well enforc. In both anecdotal and empirical research however Healy has found that corruption may not be as necessary as it is perceiv to be. In fact at the end of the day bribes may hurt a company s bottom line—and not just after being caught.
The Cost Of Doing Business Siemens
Had move aggressively into developing countries following World War II when a German company was persona non grata to most of the Western world. Paying bribes to India Whatsapp Number officials in a country became a regular business practice firmly entrench in corporate culture— and not against the law in Germany until . and permissive culture both play a role in the future bribery scandal. There are three elements that lead individuals in companies to get involv in corruption says Healy.
