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MGT1FOM Assignment 2 Litreture Review

The Olympic Movement, Ethics and Coruption

Tyler Sandiford 16116532

It almost seems that since there has been human interaction there has been corruption, or has there? This paper will delve into the different levels of corruption between individuals, corporations and countries of different cultures (ref 6,3,2). The reason for this investigation is that it appears that even a seemingly simple concept like corruption has its grey areas and in turn can possibly have its benefits to both companies and culture. This paper will also try to define scenarios which illustrate the possible positives to corporate corruption while comparing them to their negative counter arguments to decide whether or not it should still have its place in human business interactions. The idea of corruption is one of unfamiliarity for most, yet it seems it is still quite strong throughout most of the world (ref 8) and it seems that different cultures nurture the reactions to corruption, how it is initiated, observed and dealt with in different regions (ref 11, 5, 2,4 ). It is important to note that for the ease of writing this paper I will focus on bribery as its main indicator to corruption as this act can encompass other unethical or amoral activates such as lying, stealing or cheating and the way an organization or community deals with any of these acts should be quite similar to how it would deal with other unlawful activities. To deal with the problem first of all we need to know what it is that we are looking for, corruption and furthermore bribery in this case can come in a great number of forms. Bribery is defined in a few ways but for all intensive preposes it is the giving, receiving or soliciting of something of value for the purpose of influencing the action of an official in the fulfilment of their duties , understandably in western culture we may think of the bribe as the characterized briefcase of money for certain favours perhaps a business contract or maybe the okay of development plans etc. but across the world bribery comes in a spectrum of activities which depending on your cultural environment will determine your response.

Partly the reason why bribery can be so different is the different settings, environments and uses of it simply looking at west versus east we say a large difference in their base, while the west is very rule based allowing for everyone to be treated equal in the eyes of the law which calls for social conformity most simply because the penalty for a crime carries the same weight for all members of society while in the east were the power of leagel rules are not nessisarily enforced as rigorously throughout their entirety a respect of authority weather it is police, governments, managers, or elder family members is what keeps people in line (ref) and with this it follows onto relationship based business in the east such as china which tends to do business only with friends or trusted associates in general for a chinese corperation to do business with another corperation their should be an existing relationship or something which demonstrates that there will be a long term relationship. the act of building these long term relationships is called Guanxi which is more a dedicated personal bond (ref) this bond is very strong and can take time to build the chiese like to do business this way because people are less likely to break deals between parties as this would fracter even destroy the relationship which had taken so long to build. While gifts and favours are natural among friends and in guanxi also supposedly natural between business associates the line between constructive and destructive gestures blurs further as depending on the gesture it could also be a relationship breaker by some a large donation of money is acceptable and can show commitment to the fulfilment of business dealings while on the other hand it could be showing a sign of disrespect as a show of cheapness in the relationship and trying to shortcut proceedings but again offering a different gift or even no gift at all could harbour the same result (ref), it is this kind of second guessing which can make cross cultural deals difficult to inisiatie (start) and maintain when coming from overseas.

Things are not too much similar on the west side of things for example a firm looking to sign a new manufacturing contract need to look at the numbers of the potentials to pick the best option if he picked a friends, it would not be fair to the other options even though there might be intangible benefits such as a great amount of trust and loyalty between the firms (ref), the subject of this choice being unfair is further highlighted if the friends firm isnt as high a proformer as another potential firm While the general culture can have a large bearing on a firms behaviours and levels of corruptness another rather major contributing factor is the state of the legle and political arrangement in a country. Its been showen that even the most moral a company doing business in an amoral socity will undertake some kinds of cuorrupt practices (ref stats) and furthermore it will do so again if it had been caught before and the reason is because in this sort of environment these sorts of actions are almost the onl and the reason is because in this sort of environment these kinds of actions are almost the only way to do business. An example of this is Celtel International a wireless service provider with owners Dr Mo Ibrahim and Terry Rhodes who decided that in 1998 they would look into business opportunities in sub-saharan Africa prompted by the fact that Ibrahim was from sudan there decision was to be clean in there business dealings and in fact put up a great effort against the corruption such as waiting extended periods of time for shipments to make there way through customs to avoid grease payments to officials but even with there determination there came a point when major operations were haulted and some bribery was undertaken (ref) Furthermore duing business in the middle east can also present moral hurdles or in many cases brick walls, turkey is a place where bribery is almost a routine occurrence from getting people or shipments into the country to getting liceses and permits for expansions and general business procedures from police to government decicions can be bought for less than $500 (ref).

These are more extream circomstances of quasi-westurn culture but none the less these case can show almost nessisary firm corruption (although with determination can sometimes be avoided) on a different point in many arab countries getting in close with the families of power or the sheikh of the region and paying them favors of respect monetary or otherwise can make business dealings in those regons run much smoother which is not to dissimilar from the guanxi chinese relationship practice (ref). In the perivious examples we looked at unfavourable but near unavoidable corruption of even possibly morally correct firms but what can be done to help these extream situations as well as correct amoral firms in the more accomidating environments like America, Europe or austrlaia where corruption is still around even growing even though its not nessisary. Well the answer is the enforcements of measures both internally to firms as well as externally in governments. Firstly the education of an international standard of ethics needs to be developed, taught and enforced/monitored a large problem at the moment is that there are many different individual codes of ethics not quite one per company (ref toward business model) (thats actually an overstatement as many lower level business dont bother developing anything different from basic cultural norms) the development of one consis internationally accepted code of ethics would put everyone on the same page although it is a monstrously hugh task many of the forbes 1000 have quite extensive codes of ethics which detail the appropriate procedture with dealling with corruption additionally these companys in many cases actively teach the code and offer assistance to there employees in following and living the code with additional services such as 24 hour hotlines where individual situations can be addressed although these systems tend to be underutilized. Another tool which can be utilized is the legal system, obviously in more extreme environments the appropriate structuring and enforcements will most likly need to made to make so that the law is a strong enough tool but even so such action can take near immediate

action in more stable situations like America and Europe. Such action has been taken by the british by introducing the UKs Bribery act in 2010 which has been described as the toughest anticorruption legislation in the world with penalties including; up to 10 years imprisonment, uncapped fines, potential property confiscation and disqualification of directors of involved organizations. In the end at this point in time bribery, corruption and other amoral inter-human activities are still an everyday occurrence at least somewhere in the world but it is not quite as black and white as that in some cultures degrees of bribery or gift giving is still culturally accepted and should continue to be so it is the line separating these two which must be clarified through the use of appropriate ethics teachings, laws to guide business dealings and suitable government systems to enforce them that even if there are educated amoral firms still they well eventually need to conform.