COMMERCIAL BRIBERY

1
COMMERCIAL BRIBERY

• THE ACT OF INFLUENCING OR ATTEMPTING TO INFLUENCE
  THE ACTIONS OF AN EMPLOYEE SUCH AS A PURCHASING
  AGENT OR BUYER BY GIVING THE EMPLOYEE A GIFT OF
  SOME SORT WITHOUT KNOWLEDGE OF THE EMPLOYER
• No general Federal statute
• Unfair method of competition (FTC)
• Generally controlled by state law
• Federal employees, employees of Federal
  contractors
• Conspiracy, Tax Evasion

2
LEGAL AND ETHICAL ASPECTS OF MARKETING

• Marketers are governed by the same laws s all
  others
• Variety of Jurisdictions
• Geographical Jurisdictions
• International Laws
• National Laws
• Regional /State Laws
• Local Laws
• Functional Jurisdictions
• ? result in a variety of laws and
  regulations
• Both thou shalt and thou shalt not laws
• Benson P. Shapiro, 1984

3
LEGAL AND ETHICAL ASPECTS OF MARKETING

• Penalties Civil, Criminal, or both
• Can involve
• per se violations (act itself illegal)
• rule of reason violation (proof of damage
  to competition or customer)
• While laws and regulations are developed to
  protect customers or the competitive environment,
  they can protect and enhance the competing
  companies

4
LEGAL AND ETHICAL ASPECTS OF MARKETING

• PRICING
• DISTRIBUTION
• COMMUNICATION
• PRODUCT POLICY
• MERGERS AND ACQUISITIONS

5
LEGAL AND ETHICAL ASPECTS OF MARKETING

• TYPICAL DILEMMAS
• Problems due to ignorance conflict
• (1) IGNORANCE
• when in doubt, ask a lawyer
• (2) CONFLICT
• Trade-off Risk vs. Opportunity
• Differing amounts of goodness
• ETHICAL CONCERNS
• Power implies responsibility
• There are rights and wrongs in business
• Important not to compromise standards

6
SIX SUGGESTIONS

• Have low personal fixed costs retain freedom to
  leave job if necessary
• Choose your associates well
• Avoid the (appearance and reality) of ethical
  compromise (or people of integrity may avoid you)
• Set basic standards dont compromise even in
  relatively small ways
• Keep a sense of humor and perspective
• Have fun and enjoy the process of personal
  development