Corruption Perceptions Index (CPI) scores for 47 countries reported by Transparency International were used to ascertain determinants of bribe taking in international business. Two sets of independent variables – economic and cultural – were used in a multiple regression analysis. Results indicate that bribe taking was more likely to be prevalent in countries with low per capita income and lower disparities in income distribution. Cultural factors such as high power distance and high masculinity in a country were also likely to (...) be associated with high level of bribe taking. Both economic and cultural factors were important explanatory factors of bribery. Implications of the findings for combating bribery are discussed. (shrink)

This study examines attitudes toward bribery in international business and whether such attitudes differ between men and women. Results of surveys of adults studying for careers in international business indicate ambivalent and nuanced attitudes over bribe giving/taking with significant differences by sex with respect to specific hypothetical situations, suggesting a gender gap on matters of bribery. It is recommended that academic curriculum and management development programs stress ethics and legality and focus on the Foreign Corrupt Practices Act and similar antibribery (...) laws so that aspiring managers are properly trained to recognize and manage the challenges prevalent in conducting business internationally. (shrink)

Various advocacy groups and primarily domestic-focused firms in developed countries have been pushing governments to include a "social clause" in trade treaties with less developed countries. Such a clause is designed to link trading access to markets in developed countries with improvements in working conditions in poor nations. The implications of such a clause for internationally-focused firms and how managers can effectively deal with human rights issues in their foreign operations are examined. Various constituencies in this debate are identified and (...) an integrated response system on the part of firms is presented. It is suggested that the best policy for firms to adopt would be to acknowledge the relevance of the social clause in today's global economy and work closely with the various advocacy groups to ensure continuing public support while avoiding overly restrictive clauses in international trading agreements. (shrink)

The Valdez Principles have been formulated to guide and evaluate corporate conduct towards the environment. While at first glance the code appears to impose enormous new responsibilities on firms, a closer analysis indicates that existing regulations and business practices already require businesses to meet many of the environmental goals sought by its proponents. Likely corporate response to the code is examined against this background and with reference to the experience with other voluntary codes of conduct. It would appear that compliance (...) with the code will yield minimal benefits and non-compliance will impose minimum costs for the environmentally-responsible firm. (shrink)

Various advocacy groups and primarily domestic-focused firms in developed countries have been pushing governments to include a "social clause" in trade treaties with less developed countries. Such a clause is designed to link trading access to markets in developed countries with improvements in working conditions in poor nations. The implications of such a clause for internationally-focused firms and how managers can effectively deal with human rights issues in their foreign operations are examined. Various constituencies in this debate are identified and (...) an integrated response system on the part of firms is presented. It is suggested that the best policy for firms to adopt would be to acknowledge the relevance of the social clause in today''s global economy and work closely with the various advocacy groups to ensure continuing public support while avoiding overly restrictive clauses in international trading agreements. (shrink)