Reference no: EM131508153

Question: Is It a Bribe or a Gift?

The Corruption of Foreign Public Officials Act prohibits Canadian firms from making payments to foreign government officials with the aim of gaining or maintaining business. But payments are acceptable if they don't violate local laws. For instance, payments to officers working for foreign corporations are legal. Many countries don't have such legal guidelines. Bribery is a common way of doing business in many underdeveloped countries. Government jobs there often don't pay very well, so it's tempting for officials to supplement their income with bribes. In addition, in many countries, the penalties for demanding and receiving bribes are few or nonexistent. You are a Canadian who works for a large European multinational computer manufacturer.

You are currently working to sell a $5 million system to a government agency in Nigeria. The Nigerian official who heads up the team that will decide who gets this contract has asked you for a payment of $20 000. He says this payment will not guarantee you get the order, but without it he cannot be very encouraging. Your company's policy is very flexible on the issue of "gifts" to facilitate sales. Your boss says that it's OK to pay the $20 000, but only if you can be relatively assured of the order. You are not sure what you should do. The Nigerian official has told you specifically that any payment to him is not to be mentioned to anyone else on the Nigerian team. You know for certain that three other companies are also negotiating, but it's unconfirmed whether two of those companies have turned down the payment request. What would you do?