"suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressedcontent does not materially affect the overall learning experience. Cengage Learning reserves theright to remove additional content at any time if subsequent rights restrictions require it.Case 18: Managing the Risks of Global Bribery in Business 607the bottom half of the population living in poverty. A country perceived as lacking ethicalintegrity experiences reduced tourism and lowered regard from the rest of the world. There is anobvious relationship between the level of corruption in a country and its socioeconomic standing.Countries with high levels of bribery and corruption are also more likely to have especiallydamaging environmental incidents. In other words, bribes constitute an ethical lapse thatovershadows environmental interests. People engaging in bribery are looking to increase wealthand/or gain a competitive advantage in the marketplace. These are the same people that areunlikely to spend extra resources to protect the environment. Furthermore, places with highlevels of corruption often have dictatorial and hierarchical types of government where there islittle balance of power in government and few consequences for ignoring environmentalinitiatives. Beyond the natural environment, bribery also hurts businesses and the individualsthey deal with. When companies are disadvantaged by unfair competition from bribery, wealthdistribution becomes more polarized in the marketplace and companies may be forced to lay offworkers. The World Bank’s conservative estimate of the annual worldwide cost of bribery is $1trillion. Combating bribery and corruption includes implementing and enforcing stiff antibriberyregulations. Government, industry, and society must take a strong normative stand against thepractice of bribery. Complacency toward bribery eventually leads to diffusion of responsibility,where the practice becomes prevalent and acceptable. Instilling descriptive values against briberyis only successful if a normative stance against the practice is followed. A world without briberywould mean a more competitive and ethical marketplace for companies and individuals.Widespread corruption abroad imposes enormous costs on international business and causesdamage to business as a whole. It undermines the integrity and effectiveness of governments, while simultaneously creating hardships for small- and medium-sized enterprises seeking toparticipate in the global economy. A culture of corruption raises the cost of penetrating foreignmarkets and undermines predictability and business confidence. Overall, with the advent of theU.S. FCPA and U.K. Bribery Act, the potential implications for engaging in bribery havebecome stricter and more costly. However, there will always be some who attempt to find waysaround the law. To support organizational compliance, top government officials must havestrong market oversight by championing ethics training programs, enacting effective complianceand reporting mechanisms, and providing competitive structures that benefit the entities actingethically. Unfair advantages in the marketplace that result from bribery inflict harm on a widerange of stakeholders. Reducing bribery strengthens political, economic, and social institutions,perpetuates a higher quality of life, and moves society toward a sustainable future.TABLE 2 Ten Countries Most Likely to Use Bribery in Business1. Russia 6. Argentina2. China 7. Saudi Arabia3. Mexico 8. Turkey4. Indonesia 9. India5. United Arab Emirates 10. TaiwanSource: Associated Press, “The 10 Countries Most Likely to Use Bribery in Business,”Huffington Post, November 2, 2011, http://www.huffingtonpost. com/2011/11/02/bribery- business-countries-most-likely_n_1071452.html#slide=449030 (accessed February 23, 2015).BK-CHE-FERRELL_11E-150190-Case 18.indd 607 11/11/15 3:40 PM "