Reasons a corporation would engage in bribery
Bribery is a form of payment, promise or development made by a party to a person in authority in order to influence a decision. Corporations engage in bribery in order to gain favors like, obtaining operational licenses locally or internationally, get contracts, avoidance of paying government taxes. For example, Marubeni Corporation paid bribes to Indonesia government officials in the aim of obtaining a contract of power supply.
Why corruption should it be outlawed
Corruption should be legalized because it create an environment that is not friendly to both the government and small companies. Corruption leads to reduced revenue collection and dominance of the big company in the economy. The corporations will bribe to escape taxes and obtain all favor’s in terms of contracts obtaining of licenses. for example good year company payed bribes to police, local authorities and the tax authorities. Therefore, if they found themselves on wrong side of the law, the knew that they were protected. Injustice to small companies always prevail in a corrupt economy because they don’t have the cash to bribe.
How gifts can turn in to bribery
In the economy giving and accepting gifts can open doors to many opportunities through increasing the business relationship and practice. For example. When a supplier decides to treat an employee with dinner, then they will definitely share what they do and what they supplier. It will help the government official to remember the supplier when they are inviting for quotation. However if they have a meal and plan how the supplier will get some contracts, then the meal will be termed as a bribe.