LEGAL ENVIRONMENT PAPER Essay Example | Topics and Well Written Essays - 3000 words

LEGAL ENVIRONMENT PAPER - Essay Example For example, paying a government functionary in the home country a tip in order to facilitate licensing can be interpreted as bribery and subject to legal consequences or sanctions. In some foreign countries such payments are standard procedures of facilitating and expediting work, and failure to conform to such practices can often produce costly delays and probably significant losses. When there is a conflict between practices abroad and ethical and legal norms in the home country, the question that can arise is whether one should impose one’s ethical standard and values in a foreign country. Shouldn’t firms acknowledge ethical deviations for the sake of cultural sensitivity so as to avoid offending the officials and residents of the host country in the course of conducting its business? But first before going further let us attempt to define some terms and perhaps illustrate some basic concepts. The situation described above gives rise to some questions about corruption and bribery. Corruption, as defined by Joseph Nye more than 30 years ago, refers to the misuse of authority or a position of authority for some self-interested purpose (Nichols, P.M. (1997). And self-interest is not limited to pecuniary gain but may also include enhanced status, benefits to family and social circle, or any other perceived benefit. A bribe is a transaction which occurs when a good or service is transferred â€Å"across a technologically separable boundary.† (ibid). In bribery, the parties exchange benefits in an extra-legal setting, and, in most cases, the benefits conferred by the bribe giver is a quid pro quo for the benefit expected by the bribe giver.. The benefit may be anything of value to the bribe taker, made in the expectation of preferential treatment. From the economic and utilitarian perspective, bribery is objectionable because it distorts markets and