The payment of bribes violates the U.S. Foreign Corruption Practices Act, which forbids payment of bribes by U.S. companies to secure contracts abroad. Companies in violation of this law can be prosecuted in the United States. Also, IBM takes a rigorous stance toward ethical issues. Allowing the practice of bribery would send the wrong message to its employees. Mature ethical development requires that managers remain committed to their organization’s values, regardless of what is going on around them.

Should IBM allow its foreign divisions to pay bribes if all other companies are doing so?