Journal of Business Ethics

, Volume 37, Issue 4, pp 385–405

The Role of the OECD and EU Conventions in Combating Bribery of Foreign Public Officials

  • Carl Pacini
  • Judyth A. Swingen
  • Hudson Rogers
Article

Abstract

The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (the OECD Convention) obligates signatory nations to make bribery of foreign public officials a criminal act on an extraterritorial basis. The purposes of this article are to describe the nature and consequences of bribery, outline the major provisions of the OECD Convention, and analyze its role in promoting transparency and accountability in international business. While the OECD Convention is not expected to totally eliminate the seeking or taking of bribes, there are hopes that a uniform set of rules will curtail corrupt behavior, as long as those rules are both enforceable and enforced.

bribery corruption EU Convention Foreign Corruption Practices Act international business OECD Convention 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adler, M.: 2000, ‘Finland Cleanest Country, Nigeria Most Corrupt in Survey’, Agence France-Press (13 September), 4–5.Google Scholar
  2. Almond, M. and S. Syfert: 1997, ‘Beyond Compliance: Corruption, Corporate Responsibility and Ethical Standards in the New Global Economy’, North Carolina Journal of International Law and Commercial Regulation 22, 389–447.Google Scholar
  3. Andrews, E.: 1997, ‘29 Nations Agree to Outlaw Bribery’, The New York Times (21 November), A1.Google Scholar
  4. Anonymous: 1995, ‘Following the Money: Prosecutors Attempt to Trace Roh's Slush Fund’, Asiaweek (1 September), 39.Google Scholar
  5. Anonymous: 1999, ‘A Global War on Bribery’, Economist (16 January), 22.Google Scholar
  6. Anonymous: 2000, ‘Argentina Energy Repsol-YPF Denies Bribing Argentine Politicians’, EFE News Service (22 September).Google Scholar
  7. Baker, C. R. and P. Wallage: 2000, ‘The Future of Financial Reporting in Europe: Its Role in Corporate Governance’, International Journal of Accounting 35(2), 173–187.Google Scholar
  8. Bohlen, C.: 1995, ‘Bribery as a Way of Life in Italy’, The New York Times (10 December), 21.Google Scholar
  9. Borrus, A.: 1995, ‘A World of Greased Palms’, Business Week (6 November), 36–38.Google Scholar
  10. Buscaglia, E.: 1996, ‘Corruption and Judicial Reform in Latin America’, Policy Studies 17, 273–294.Google Scholar
  11. Butler, K.: 2000, ‘Arms and Building Trades Lead the Worldwide Boom in Corruption’, The Independent (London) (11 January), 15.Google Scholar
  12. Carlson, J.: 2000, ‘Money Laundering and Corruption: Two Sides of the Same Coin', in No Longer Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 127–136.Google Scholar
  13. Cartier-Bresson, J.: 2000, ‘The Causes and Consequences of Corruption: Economic Analyses and Lessons Learnt', in No Longer Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 11–28.Google Scholar
  14. Cateora, P. R. and J. L. Graham: 1999, International Marketing, 10th ed. (Irwin McGraw-Hill, New York).Google Scholar
  15. Corr, C. and J. Lawler.: 1999, ‘Damned If You Do, Damned If You Don't? The OECD Convention and the Globalization of Anti-Bribery Measures’, Vanderbilt Journal of Transnational Law 32, 1249–1344.Google Scholar
  16. Drozdiak, W.: 1999, ‘Scandals Threaten Kohl's Legacy: Charges of Bribery in Party Beset Ex-German Leader’, The New York Times (27 November), A16.Google Scholar
  17. Earle, B.: 1996, ‘The United States Foreign Corrupt Practices Act and the OECD Anti-Bribery Recommendation: When Moral Suasion Won't Work, Follow the Money Argument’, Dickinson Journal of International Law 14, 207–224.Google Scholar
  18. Edmonson, G., S. Sansoni, K. Miller and L. Bernier: 1995, ‘Europe's New Morality’, Business Week (18 December), 26–30.Google Scholar
  19. European Union: 1996, ‘Green Paper on the Role, the Position, and the Liability of the Statutory Auditor Within the European Union’, Official Journal of the European Communities (28 September), C321.Google Scholar
  20. Gantz, D.: 1998, ‘Globalizing Sanctions Against Foreign Bribery: The Emergence of a New International Legal Consensus’, Northwestern Journal of International Law & Business 18, 457–497.Google Scholar
  21. George, B. K., K. Lacey and J. Birmele: 2000, ‘The 1998 OECD Convention: An Impetus for Worldwide Changes in Attitudes Towards Corruption in Business Transactions’, American Business Law Journal 37, 485–525.Google Scholar
  22. Glynn, P., S. Kobrin and M. Naim: 1997, ‘The Globalization of Corruption', in K. Elliott (ed.), Corruption and the Global Economy (Institute for International Economics, Washington, DC), pp. 7–30.Google Scholar
  23. Goering, L.: 1996, ‘Corruption a Hurdle Democracy Can't Jump’, The Ottawa Citizen (28 November), A10.Google Scholar
  24. Gray, C. and W. Jarosz: 1995, ‘Law and the Regulation of Foreign Direct Investment: The Experience from Central and Eastern Europe’, Columbia Journal of Transnational Law 33, 1–40.Google Scholar
  25. Hamra, W.: 2000, ‘Bribery in International Business Transactions and the OECD Convention: Benefits and Limitations’, Business Economics 35, 33–48.Google Scholar
  26. Harsch, E.: 1993, ‘Accumulators and Democrats: Challenging State Corruption in Africa’, Journal of Modern African Studies 31, 31–48.Google Scholar
  27. Huntington, S. F. P.: 1968, Political Order in Changing Societies (Yale University Press, New Haven).Google Scholar
  28. Kaufman, D.: 1998, ‘Research on Corruption: Critical Empirical Issues', in Arvin Jain (ed.), Economics of Corruption (Kluwer Academic Publishers, Boston), pp. 129–176.Google Scholar
  29. Leff, N.: 1964, ‘Economic Development Through Bureaucratic Corruption’, American Behavioral Scientist, 8–14.Google Scholar
  30. Mauro, P.: 1995, ‘Corruption and Growth’, Quarterly Journal of Economics 112, 681–712.Google Scholar
  31. Mauro, P.: 1997, ‘The Effects of Corruption on Growth, Investment, and Government Expenditure', in K. Elliott (ed.), Corruption and the Global Economy (Institute for International Economics, Washington, DC), pp. 83–108.Google Scholar
  32. Miller, L.: 2000, ‘No More "This for That?" The Effect of the OECD Convention on Bribery of Foreign Public Officials in International Business Transactions’, Cardozo Journal of International and Comparative Law 8, 139–160.Google Scholar
  33. Millet-Einbinder, M.: 2000, ‘No More Tax Breaks for Bribes', in No More Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 67–76.Google Scholar
  34. Moss, N.: 1997, ‘Who Bribes Wins’, The European (11 December), 26–27.Google Scholar
  35. Nakarmi, L.: 1995, ‘The Slush Fund That is Shaking Up Seoul’, Business Week (November), 60–61.Google Scholar
  36. Nathan, S.: 1999, ‘U.S.: Tie Loans to Corruption: Weigh Bribery in Aid Decisions’, U.S.A. Today (17 February), 3B.Google Scholar
  37. Nichols, P. M.: 1999, ‘Are Extraterritorial Restrictions on Bribery a Viable and Desirable International Policy Goal Under the Global Conditions of the Late Twentieth Century? Increasing Global Security By Controlling Transnational Bribery’, Michigan Journal of International Law 20, 451–476.Google Scholar
  38. OECD: 2000a, 'What is the OECD?' (Organization for Economic Cooperation and Development) http://www.oecd.org/about/general/index.htm/ visited December 18, 2000.Google Scholar
  39. OECD: 2000b, 'Recommendation of the Council on the Tax Deductibility of Bribes to Foreign Officials', (Organization for Economic Cooperation and Development) http://www.oecd.org/daf/ cmis/bribery/bribrecm.htm/ visited December 18, 2000.Google Scholar
  40. Oldenburg, P.: 1987, ‘Middlemen in Third-World Corruption: Implication of an Indian Case’, World Politics 39, 508–537.Google Scholar
  41. Omestad, T.: 1997, ‘Bye-bye to Bribes: The Industrial World Takes Aim at Official Corruption’, U.S. News and World Report (22 December), 39–43.Google Scholar
  42. Pieth, M.: 2000, ‘From Ideal to Reality: Making the New Global Standard Stick', in No Longer Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 51–65.Google Scholar
  43. Posadas, A.: 2000, ‘Combating Corruption Under International Law’, Duke Journal of Comparative and International Law 10, 346–414.Google Scholar
  44. Pricewaterhouse Coopers: 2001, The Opacity Index (Pricewaterhouse Coopers, New York).Google Scholar
  45. Quinones, E.: 2000, ‘The Promise and the Reality: Monitoring Compliance with the Convention', in No Longer Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 101–109.Google Scholar
  46. Quinones, E.: 2001, ‘Implementing the Anti-Bribery Convention: An Update from the OECD', in R. Hodess and J. Banfield (eds.), Global Corruption Report 2001 (Transparency International, Berlin), pp. 197–203.Google Scholar
  47. Rose-Ackerman, S.: 1997a, ‘Corruption as an International Policy Problem: Overview and Recommendations', in K. Elliott (ed.), Corruption and the Global Economy (Institute for International Economics, Washington, DC), pp. 175–233.Google Scholar
  48. Rose-Ackerman, S.: 1997b, ‘The Political Economy of Corruption', in K. Elliott (ed.), Corruption and the Global Economy (Institute for International Economics, Washington, DC), pp. 31–60.Google Scholar
  49. Rose-Ackerman, S.: 1999, Corruption and Government: Causes, Consequences, and Reform (Cambridge University Press, Cambridge).Google Scholar
  50. Sacerdoti, G.: 2000, ‘To Bribe or Not to Bribe?’ in K. Elliott (ed.), No Longer Business As Usual (Organization for Economic Cooperation and Development, Paris), pp. 29–50.Google Scholar
  51. Schollhammer, H.: 1977, ‘Ethics in an International Business Context’, MSU Business Topics (Spring), 53–63.Google Scholar
  52. Sergueva, V.: 2000, ‘Corruption Sours Day-to-Day Life in Bulgaria’, Agence France-Presse (9 November), 3–4.Google Scholar
  53. Shleifer, A. and R. Vishny: 1993, ‘Corruption’, Quarterly Journal of Economics 108, 599–617.Google Scholar
  54. Transparency International: 2001, 'The Global Coalition Against Corruption,' 2000.htm/ visited December 18, 2000 and November 27, 2001.Google Scholar
  55. Von Waldersee, K.: 1995, ‘Inquiry into Airbus Bribery Allegations Picks Up Speed’, The Guardian (London) (19 December), 17.Google Scholar
  56. Walsh, J.: 1998, ‘A World War on Bribery: The Costs of Corruption Have Reached Earth-Shaking Proportions Prompting Herculean International Efforts to Clear Out the Muck’, Time (22 June), 16.Google Scholar
  57. Wei, S. J.: 1997, ‘How Taxing is Corruption on International Investors?’ NBER Working Paper, No.6030.Google Scholar
  58. Williams, J. and M. Beare: 1999, ‘The Business of Bribery: Globalization, Economic Liberalization, and the 'Problem" of Socialization’, Crime, Law and Social Change 32, 115–146.Google Scholar
  59. Zagaris, B. and S. L. Ohri: 1999, ‘The Emergence of an International Enforcement Regime on Transnational Corruption in the Americas’, Law and Policy in International Business 30 (Supplement), 53–93.Google Scholar

Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Carl Pacini
    • 1
  • Judyth A. Swingen
    • 2
  • Hudson Rogers
    • 3
  1. 1.College of BusinessFlorida Gulf Coast UniversityFt. MyersU.S.A.
  2. 2.University of Arkansas at Little RockU.S.A.
  3. 3.College of BusinessFlorida Gulf Coast UniversityFt. MyersU.S.A.

Personalised recommendations