This question is from Chapter 5 of the Textbook called International Management

Question

This question is from Chapter 5 of the Textbook called International Management by Fred Luthans (9th edition):

Last week on the forum there was some discussion of bribery. Bribery is an acceptable practice in many countries and unacceptable (and illegal) in other countries. When there are opposing perspectives on an issue, it can be difficult for the MNC to create an effect strategy for an issue of this sort. I'd like us to have a conversation about bribery this week. We can use this example to look at the difficulties associated with "managing across cultures" (this week's chapter).

I'm providing a link here about bribery that might give you some background, but we don't need to limit our conversation to China since this is a problem with many countries. http://www.bloomberg.com/news/2013-11-21/china-s-bribery-culture-poses-risks-for-multinationals.html

I'll start us off simply and we'll see where the conversation develops this week. What would you advise an MNC to do if they are trying to do business in a country that is perfectly comfortable with bribery? Feel free to use any of the typologies from the chapter to help with your answer.

Explanation / Answer

Bribery is a scial issue that generated parallel source of income and create a black market for earning money. It is a serious threat for a multi national business. Some nations have firm stand against bribery and considered as courruption ( eg: US, UK) while in some nations like Singapore, China ( predominante countries for logistics and manufacturing hub) is very lenient and acceptable for bribery.

Thus bribery practise creat high level of ambiguity in terms of cultutral social and business perspective.

What would you advise an MNC to do if they are trying to do business in a country that is perfectly comfortable with bribery

Bribery acts can be avoided by creating an open or transprent business channel, that will reduce the chance for bribery.Make contractual agreement with the companies clearly statng the consequences of bribery and guide them how to eliminate that from the process. Appoint anti bribery team in every milestone of contract and in place of bribery add more values through better work practise and incentives to the employees for thier quality of service. Motivate the employees, who are loyal in multinational linkages so that they will understand the ethics in business and gradually they become straightforward. They can earn through incentive schemes through their quality of work and value addition given to the business through transparent way. Align with the government in bribery act and seek the support from them to make this anti bribery campaigning more effective. Add posters in offices against the issues causing because of bribery and stop them frm doing so. Thus make a healthy work culture where they gradually realise bribery is a crime. They can motivate and develop their subordinate to get rid of such acts and finally turn out to get a future work place and multinational linkages where no more bribery is found.

One of the main cause of bribery is umatching salary for the employees according to their life standards and industrial standards. Thus propose a study to understand the wage revision, whereever it is required and generate the revenue accordingly to pay them in a better way.

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