does Bribery help or hurt Essay

879 Words Jan 19th, 2014 4 Pages
Bribery in the business world is a very polemical term, where it involves the corruption between the private sector and the government. The article “Does bribery help or hurt firm growth around the world?” by Jessie Qi Zhou & Mike W. Peng provides a good review and examination of how bribery plays a role in the growing process of a firm and what implications or consequences it can bring. The article brings two important points of view; the first one is focus on what levels the firms have to use bribery in order to obtain benefits (which depends in what country the firm is located), the second point is in what degree bribery will benefit or injured the development of the company. These points are very accurate in the sense the article …show more content…
Those rivals may not have to fear the possible legal consequences, if they hail from countries with more permissive standards. Second, the Policy uncertainty is one of the key to show how it is important to have well structure political strategy to regulate and control emerging economies. Also the authors state that “business regulations are often subject to constant change”, creating a complex situation for businesses to implement a long-term planning. As respond for that kind of complexity, bribery may be the most reliable tool to speed and facilitate important information from government in order to be prepared for any new incoming event before other firms. Third, the Legal system quality is the procedures where the government can effective monitor and prevent government officials to be involved in any type of corruption. But again, the authors mention another important principle - the importance of transparency. Bribery is often observed in a government where the check and balance system is weak.
Second, it really looks like that bribery will always be a benefit for the firm as long no one finds out. But the article expresses a different point of view which I totally agree; perhaps bribery is not the best solution for every company. Going back to example of Wal-Mart, the company could be well established and developed in the United States; but when approaching other markets for example Mexico,…