Unit 7 Coursework Example | Topics and Well Written Essays - 250 words

Unit 7 - Coursework Example In order to look at prevalence and reduction of bribery, we look at the relative benefits and costs of engaging in such practice. If the benefits of engaging in such practices are huge for a party in contrast to the costs, then the firm will likely resort to it as a rational act in line with conducting its business. Otherwise, the behavior will be discouraged as the benefits are perceived to be not worth the trouble, or costs to engaging in it. The benefits to facilitate bribery are huge for both the giver and the receiver of the bribe. The giver or the firm gets favor, maybe from the government agencies or another firm from the private sector. The receiver, maybe the government agencies or other firms, receive a sum of money in return for this favor. The main reason why it is not reduced is because these benefits are greater than the costs to participate in such practice. There are not enough punishments in order to make the benefit seem not worth the price to be paid. Apart from lack of moral integrity in some countries, why should such a beneficial behavior to these parties be discouraged if there are not enough costs to punish them? Therefore, in order to discourage bribery, the cost to parties that participate in such practice should be increased. In what form should the cost come in? The cost should come in the form of fines, as what is included in the US laws for anti-bribery. But aside from it, these costs can come in the form of damage in reputation for the parties that involve in facilitating bribery. What multinational companies and the global community can do is to raise moral awareness on a global scale while condemning such practices. This is to increase the costs to parties who are doing it, the costs in the form of damage in reputation, if the fines are not enough, for being seen as firms who lack integrity in doing business in other countries. The effects to US firms