The International Dimension

Most larger companies have international links and associated business ventures. One dilemma is that
standards set for domestic business may not be appropriate when dealing with overseas business. It is a
well known fact that many countries encourage some form of facilitation from large corporations from
developed economies. Transparency International (TI) publishes an International Bribe Payers Index
each year which lists the countries in order of propensity to require bribes from overseas companies. TI
defines corruption as the abuse of public power for private gain and has listed the forces that encourage
bribery. The changes and developments contributed to an increase in corruption by foreign companies
of senior officials in the past five years—in order of significance:

• public tolerance of corruption

• deterioration of the rule of law
• immunity of high public office
• inadequate controls over money laundering
• Low public salaries
• worsening public procurement practices
• increased secrecy in government
• Privatization of state assets
• increased globalization and competition
• changes in political party funding
• increased financial liberalization
• restrictions on the media