What Is a Bribe?
A bribe is an illegal act involving the exchange of something of value, such as money, with the purpose of influencing the behavior of public officials.
Key Takeaways
- A bribe occurs when one entity illegally offers money or something else of value to sway or influence some decision or process.
- Bribes are often made to escape legal actions or circumvent rules or regulations.
- The United States, along with most countries, expressly prohibits bribes; they are considered both illegal and unethical.
How Bribes Work
Under Section 201 of Title 18 of the U.S. Code, bribery includes indirectly influencing any official act by corruptly giving, offering, or promising anything of value to a public official. Bribes are often made with money through offering, giving, receiving, or soliciting special favors to public officials such as judges or heads of regulatory agencies to elude convictions or unfavorable court rulings, oras an incentive for the payee to alter or overlook pertinent regulations that would otherwise restrict the payer.
Bribes and kickbacks, a particular form of bribery, are always illegal. Bribes that take the form of kickbacks to insurance or securities customers are known as rebating and can result in disciplinary actions by regulatory authorities.
Types and Scales of Bribery
Bribes occur in many forms, ranging from minor transactions between individuals to major deals between corporations or governments. Bribes can also be masked as tips, gifts, favors, donations, or other forms of legal exchanges.There is no universal definition or classification system for bribery, as some nations approve of and legalize certain transactions that are illegal elsewhere.
For example, in the United States, it is illegal to offer payment to a police officer to avoid a penalty for a violation.However, in some countries, bribery has become normalized or expected behavior, even if it's technically illegal.In another case, it is considered bribery in some nations for political campaigns to receive cash donations.In the United States, this act is not illegal, provided the donation is made within specific limits, and according to certain guidelines.Bribery can occur between individuals, firms, industries, and nations.
Although bribes are most commonly associated with professional sports and politics, it is also a growing problem for other sectors, such as within the healthcare and pharmaceutical sectors.In the medical and pharmaceutical industries, some pharmaceutical corporations offer bribes to practitioners to choose their drugs over others, or to bypass certain regulatory standards.
Despite the differences in definitions and classifications, the concept of bribery is widely considered a growing global problem.According to the World Bank, corporations and individuals pay more than $1trillion in bribes every year.
In the U.S., lobbying is legal, while bribery is not. Bribery is an effort to unethically buy power, while lobbying is an effort to influence political will—but admittedly, the distinction between the two can be fuzzy at times.
Tax Treatment of Bribes
The United States prohibits bribes as being recorded for tax purposes because they stifle the democratic process, encourage unethical behavior, and conflict with the principles of freedom and equality.Although most developed nations have practices similar to the United States, some developing and a few developed nations allow bribes to be tax deductible.
To prevent bribery, the OECD Council established the Anti-Bribery Convention, which seeks to eliminate corruption in developing nations by introducing sanctions against bribery in certain international business transactions of companies based in member countries.
As an expert in the field of corruption, ethics, and legal frameworks, my extensive knowledge allows me to delve into the intricate details of the concepts discussed in the article. I have a deep understanding of the legal and ethical dimensions surrounding bribery, drawing on a wealth of information up to my last training cut-off in January 2022.
Now, let's break down the key concepts discussed in the article:
Bribery Definition and Illegal Nature:
The article rightly defines bribery as an illegal act involving the exchange of something of value, such as money, with the purpose of influencing the behavior of public officials. This definition aligns with legal frameworks, particularly under Section 201 of Title 18 of the U.S. Code. Bribes are used to sway decisions or processes, often to escape legal actions or circumvent rules and regulations.
Mechanism of Bribery:
The mechanism of bribery involves the corrupt giving, offering, or promising anything of value to a public official. The exchange typically happens with the intent of indirectly influencing an official act. Money is a common medium for bribery, and it can take various forms, including offering, giving, receiving, or soliciting special favors. Bribes can be directed towards judges or heads of regulatory agencies to avoid convictions, alter court rulings, or overlook regulations.
Types and Scales of Bribery:
Bribes come in various forms, from minor transactions between individuals to major deals between corporations or governments. The article rightly points out that bribes can be disguised as tips, gifts, favors, donations, or other legal exchanges. Importantly, there is no universal definition for bribery, and what may be legal in one country can be illegal elsewhere. The article provides examples, such as the varying legality of offering payment to a police officer in different nations.
Bribery in Different Sectors:
The article correctly highlights that bribery is not confined to specific sectors like professional sports or politics. It's a growing problem in sectors such as healthcare and pharmaceuticals. In these industries, pharmaceutical corporations may offer bribes to practitioners to influence drug choices or bypass regulatory standards.
Tax Treatment of Bribes:
The United States prohibits recording bribes for tax purposes, emphasizing that they stifle the democratic process, encourage unethical behavior, and conflict with the principles of freedom and equality. The article notes that while most developed nations have similar practices, some developing and a few developed nations allow bribes to be tax deductible.
International Efforts to Combat Bribery:
The article references the Anti-Bribery Convention established by the OECD Council to eliminate corruption in developing nations. The convention introduces sanctions against bribery in certain international business transactions involving companies based in member countries.
In summary, bribery is a complex issue with legal, ethical, and international dimensions, and my expertise allows me to comprehensively understand and explain these concepts.
