Decision Point: Should You Pay a Bribe?

When you come into work on Tuesday, you check your email. You see that you have an email from the plant manager in Taiwan.

Plant Manager Subject: Problem with Permit

We have a serious problem here. We applied for a permit to expand the manufacturing facility several weeks ago. I called the Building Department to find out the status and was told that there is a problem with the paperwork, and they don't know when they will be able to issue the permit. It may be weeks, or even months.

If we don't get this permit soon, the monsoon season will be here, and construction will be delayed until November.

I spoke to one building inspector here, and he said he'd put a rush on the permit if we paid him $1,000. You know as well as I do that it's a bribe, but we need to get construction started. What do you want me to do?

You know that the Foreign Corrupt Practices Act (FCPA) prohibits U.S. firms from paying bribes to foreign officials. But you need that permit or construction will be delayed for months. What are you going to do?

Select an option from the choices below and click Submit.

a. Tell the plant manager to have a third party who isn't an employee make the payment to the customs official. That will keep your company's hands clean but you'll still be able to get the permit and start construction.

b. The law is the law. Tell your plant manager that she should not pay the bribe because it is against the law.

c. Tell the plant manager to make the payment and bury the expense in another account. It's a chance you have to take if you're going to get construction started before the monsoon season. Besides, companies in other countries don't have to abide by the FCPA, so it puts U.S. companies at a decided disadvantage.