NCJ Number
47138
Date Published
1978
Length
11 pages
Annotation
THE COMMON USE OF BRIBES BY AMERICAN CORPORATIONS CONDUCTING BUSINESS ABROAD, ESPECIALLY WITH THE GOVERNMENTS OF DEVELOPING NATIONS, IS EXAMINED IN LIGHT OF THE 'POST-WATERGATE MORALITY.'
Abstract
AMERICAN BUSINESS ACTIVITIES ABROAD GENERATE 15 PERCENT OF THE NATION'S GROSS NATIONAL PRODUCT, 30 PERCENT OF THE TOTAL PROFITS OF THE NATION'S CORPORATIONS, AND AN ESTIMATED 10 MILLION AMERICAN JOBS. IN LARGE MEASURE THE PRESERVATION OF THE COUNTRY'S FRAGILE ECONOMIC STABILITY DEPENDS UPON PROFITS FROM FOREIGN INVESTMENT AND DOLLARS EARNED OVERSEAS. THE ROLE OF BRIBERY IN THIS FRAMEWORK OF AMERICAN INVESTMENT AND SALES ABROAD IS EXAMINED. THE ORDINARY BUSINESS SELLS TO PRIVATE CONCERNS, AND IS GENERALLY NOT ENMESHED IN THE SORT OF HIGH-LEVEL PAYOFFS THAT HAVE RECENTLY ERUPTED IN SCANDALS CONCERNING LOCKHEED, NORTHROP, EXXON, GULF, AND UNITED BRANDS. THE SIDE INDUCEMENTS ORDINARY BUSINESSES EMPLOY ARE NO DIFFERENT FROM THOSE THAT ARE PART OF THE DAILY PRACTICE IN ALMOST EVERY FIELD OF BUSINESS IN THE U.S. IN GENERAL THE LARGER THE COMPANY REPRESENTED THE LARGER THE DEAL; THE LARGER THE DEAL, THEN THE MORE LIKELY A FOREIGN GOVERNMENT'S INVOLVEMENT. LARGE-SCALE BRIBES ARE, AS A RULE, MOST OFTEN SOLICITED BY AND PAID TO OFFICIALS RESPONSIBLE FOR THE CONTROL OF MARKETS AND THE ALLOCATION OF NATURAL RESOURCES. THE REASONS MULTINATIONAL CORPORATIONS (GENERALLY A EUPHEMISM FOR AMERICAN-BASED CORPORATIONS WITH SUBSTANTIAL OVERSEAS OPERATIONS) ENGAGE IN BRIBERY GO DEEP INTO THE HISTORY AND STRUCTURE OF LANDS IN WHICH THEY OPERATE. IN AFRICA, ASIA, SOUTH AMERICA, AND THE MIDDLE EAST THE SALES OF GOODS AND SERVICES IS GOVERNED BY INTRICATE TRIBAL AND OLIGARCHIC ARRANGEMENTS OF SOCIAL CONNECTION, FAMILY RELATIONS, AND RECIPROCAL OBLIGATIONS, LUBRICATED BY MANY FORMS OF TRIBUTE, INCLUDING CURRENCY. THE RESPONSIBILITY FOR SUCH PRACTICES MUST ALSO BE SHARED BY THE U.S. GOVERNMENT, WHICH NOT ONLY ENCOURAGED INVESTMENT IN COUNTRIES WHOSE ETHICAL STANDARDS DIFFER FROM ITS OWN, BUT ALSO IN MANY RESPECTS SET THE PATTERN FOR THE GRAFT UNDER CENSURE TODAY. UNITED STATES INTELLIGENCE AGENCIES HAVE REGULARLY DEALT IN BRIBERY AND PAYOFFS AS TOOLS FOR STRENGTHENING AMERICAN INFLUENCE ABROAD. THE SENATE SUBCOMMITTEE ON MULTINATIONAL CORPORATIONS IS URGING LEGISLATION WITH PROVISIONS RANGING FROM COMPULSORY DISCLOSURE OF SUCH BRIBERY PAYMENTS, TO CRIMINAL PROSECUTION, TO A REQUIREMENT THAT THE STATE DEPARTMENT KEEP WATCH ON AMERICAN BUSINESS PEOPLE ABROAD AND REPORT ALL SUSPICIOUS ACTIVITIES TO APPROPRIATE U.S. AUTHORITIES. AT PRESENT, THE ONLY VIABLE AVENUE OF CONTROL ARE INTERNAL REVENUE SERVICE INVESTIGATIONS OF CORPORATIONS IMPROPERLY DEDUCTING PAYOFFS ON THEIR TAX RETURNS. NO REFERENCE MATERIAL IS CITED. (KBL)