Comments on: how to anonymously report bribe demands http://www.chinalawandbusiness.com/2008/08/05/how-to-anonymously-report-bribe-demands/ A China law blog covering issues in Chinese law, business, and society Wed, 07 Jan 2009 03:08:53 +0000 http://wordpress.org/?v=2.3.2 By: T Chow http://www.chinalawandbusiness.com/2008/08/05/how-to-anonymously-report-bribe-demands/#comment-1059 T Chow Sun, 17 Aug 2008 08:08:09 +0000 http://www.chinalawandbusiness.com/2008/08/05/how-to-anonymously-report-bribe-demands/#comment-1059 Richard, I definitely understand the reality of bribes and that's how business is done in much of the world outside of the US and EU. (I personally place a high value on legal compliance, but then again, I am a lawyer by trade.) As a lawyer, the least I can do for any client is similar to the Fortune 500 VP: sound the alarm and hope that it gets heard. Either way though, I cannot ultimately force any client to comply with the FCPA or any such anti-bribery law. That is always a client's choice... for better or worse. Tom Richard,

I definitely understand the reality of bribes and that’s how business is done in much of the world outside of the US and EU. (I personally place a high value on legal compliance, but then again, I am a lawyer by trade.) As a lawyer, the least I can do for any client is similar to the Fortune 500 VP: sound the alarm and hope that it gets heard. Either way though, I cannot ultimately force any client to comply with the FCPA or any such anti-bribery law. That is always a client’s choice… for better or worse.

Tom

]]> By: Richard Kuslan, Editor, Asiabizblog, www.asiabizblog.com http://www.chinalawandbusiness.com/2008/08/05/how-to-anonymously-report-bribe-demands/#comment-1038 Richard Kuslan, Editor, Asiabizblog, www.asiabizblog.com Thu, 14 Aug 2008 20:52:11 +0000 http://www.chinalawandbusiness.com/2008/08/05/how-to-anonymously-report-bribe-demands/#comment-1038 I'm not sure I agree that clean and straight is best for business, but that's the law as it stands and we must abide by it in the US and the EU. Frankly, I don't believe it should be law. It is an extra hurdle we must jump without the benefit of the bribe, but the bribe must be made by someone. The payoff s usually pushed, unsaid, onto the local distributor, who, by now, should know better than raise the issue with American or EU sales managers. A Fortune 500 Vice-President I knew xeroxed and distributed to his team any and all FCPA-related articles he got his hands on. He would write sanctimoniously at the top, "Careful, team! Let us not fall into this trap! Stand up straight and honorably!" etc. He was known as a cost cutter, not a business developer. His fear was the fines and more likely the personal liability. Finance guys such as he hold every marketing penny hostage unless they see an immediate direct benefit that can be derived from its expense. This gent knew a bribe would grease the wheels and hoped you did it, but having covered his backside with reams of leaflets, he was, he believed, covered. Of course, were you to come back from Corrupt Country #19 without a deal in your pocket, you were in for it and blamed for what was, essentially, his lack of leadership. I’m not sure I agree that clean and straight is best for business, but that’s the law as it stands and we must abide by it in the US and the EU. Frankly, I don’t believe it should be law. It is an extra hurdle we must jump without the benefit of the bribe, but the bribe must be made by someone. The payoff s usually pushed, unsaid, onto the local distributor, who, by now, should know better than raise the issue with American or EU sales managers.

A Fortune 500 Vice-President I knew xeroxed and distributed to his team any and all FCPA-related articles he got his hands on. He would write sanctimoniously at the top, “Careful, team! Let us not fall into this trap! Stand up straight and honorably!” etc.

He was known as a cost cutter, not a business developer. His fear was the fines and more likely the personal liability. Finance guys such as he hold every marketing penny hostage unless they see an immediate direct benefit that can be derived from its expense. This gent knew a bribe would grease the wheels and hoped you did it, but having covered his backside with reams of leaflets, he was, he believed, covered.

Of course, were you to come back from Corrupt Country #19 without a deal in your pocket, you were in for it and blamed for what was, essentially, his lack of leadership.

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