Gift versus Bribe

Ø 1) Is the topic of the title actual for your country?

Your company has sent you to an African country to conduct business. You think you’ve clinched the deal, but then your contact asks you for a “gift” of money to ensure that the deal goes through. Do you say “Sorry, I don’t give bribes” and stomp away in a huff? Or do you give him what he asks for but feel guilty that you are violating busi­ness ethics to do so?

Deciding how to handle such situations requires knowledge of the customs in the country in which you are doing business. Most non-Western countries, es­pecially in Africa and Asia, have strong traditions built around exchanges of gifts. The savvy businessperson who can tap into these traditions will not only clinch today’s deal but establish long-term business relation­ships - without compromising integrity.

American businesses that operate in non-Western countries need to be aware of three traditions underlying modern business dealings in those countries: the inner circle, the future-favors system, and the gift exchange.

In developing nations, people tend to see them­selves as belonging to an inner circle that consists of relatives, friends, and close colleagues. All those in the inner circle are devoted to mutual protection and prosperity. Everyone else is an “outsider, ” a stranger whose motives are to be questioned. Obviously, peo­ple prefer to conduct business with “insiders” - with those they know and trust.

In a system of future favors, a gift or service obli­gates the recipient to return the favor at some future time - with interest. And once the favor is returned, the original giver becomes obligated to repay this greater favor. And so the system of obligations be­comes a lifelong relationship, one that can provide access to the inner circle and that can serve as the basis of business dealings.

A third cultural tradition, intertwined with the fu­ture-favors system, is the practice of gift giving. Giving or receiving a gift can be much more than a gesture of friendship - it can be the first in a long-term se­quence of gift exchanges. As expert Jeffrey A. Fadiman has noted, “The gifts are simply catalysts. Under ideal circumstances the process should be un­ending, with visits, gifts, gestures, and services flow­ing back and forth among participants throughout their lives.” By participating in the traditional exchange of gifts and favors and becoming part of an inner circle, American businesspeople can build trust, gain greater access to local markets and expertise, and minimize risk in a foreign environment.

The difficult part in getting into local gift-giving traditions is learning how to distinguish gifts from bribes. If your African contact asks you for money, is he engaging in extortion, or is he encouraging you to enter into the future-favors system? One way to tell is from the size of the request - the smaller the amount, the less likely it is to be a bribe. Another way to tell is by whom the money is to be paid to. If it is supposed to go to a third party - especially someone in power - it is more likely to be a bribe.

Many large American corporations have devel­oped clever and useful strategies for handling re­quests for payoffs. Instead of making private pay­ments to individuals, they offer donations to build hospitals and schools, they provide engineering or other expert services for public works, or they donate jobs, all with the goal of creating goodwill in the host nation. Furthermore, they gain a reputation for pro­viding social services instead of paying bribes, and the foreign officials who arrange the donation gain in prestige.

With the appropriate knowledge and strategies, Western businesspeople can have successful dealings in non-Western countries without compromising their ethics. At the local level, gift giving serves an impor­tant traditional function and can be seen as a cour­tesy and not as a bribe. At wider levels, companies can circumvent questionable payoffs by providing important social services that benefit everyone and that establish long-term trusting relationships.

Ø 2) Outline the difference of giving or receiving a gift in different countries.

Ø 3) Make up an outline of the text in writing.