Although 44 countries have signed up for the Organization for Economic Cooperation and Development (OECD) Anti-Bribery Convention to outlaw bribery and corruption, the problem is still present. Let us consider Greece, which the OECD censored for failing its promise to crack down on corruption. In Greece, the practice of political favoritism and passing “fakelaki,” envelopes stuffed with money, in return for services is as prevalent today as it ever was. Since joining the EU, many scandals have been exposed in Greece. Many consider corruption to be a cause for the country’s €358 billion ($397 billion) debt. From needless jobs to a refusal to give receipts, through tax evasion and then on to high-level bribery, it is estimated that Greek citizens spend hundreds of millions of euros on bribes each year. International companies looking toward Greece are aware that this is often the cost of doing business there. In August 2012, the German group Siemens AG, reached a €330 million ($438 billion) settlement with the Greek government over long-running allegations that Siemens AG used bribery to secure a raft of contracts for the 2004 Athens Olympic Games.

In an earlier case, two managers from a different German company, an industrial firm Ferrostaal, had been convicted of paying bribes in Greece and ordered to pay fines.

Most recently, several Greek politicians are under investigation for allegedly receiving bribes over €50 million from Novartis, the Swiss drug maker, between 2006 and 2015 to promote Novartis products. As of June 2019, the investigations are still ongoing^.

DISCUSSION QUESTIONS

4-1. Discuss your reactions to the events mentioned in the case. Why do you think bribery takes place? Why do you think it needs to be outlawed?
4-2. It is important for managers to be aware of external environmental forces especially in global settings. Discuss this statement in light of the events described in the case.
4-3. What might the managers at Siemens AG have done differently?
4-4. Siemens AG is not the only company linked to bribery. Find at least three other examples and describe them briefly. Research whether other countries outlaw the practice of bribing.