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Analysis of commercial bribery and its harm Abstract Moral failure phenomenon has more and more in the economic field these problems will not only seriously affect people s economic activities but also affect social emotions limit people s development in an all round way and caused great pressure on the environment The commercial body needs engaged in commercial activities pay attention to the business ethics have a good business reputation set up the correct values of business ethics in order to make them in business economic tide of healthy and long term development down Commercial bribery is one of the main factors that disrupt business ethics it serious damage of the economic order the huge risk the world economic development Key Word Moral Intelligence Commercial bribery Daimler AG Business Ethics Introduction Commercial bribery has customers as the goal through the unfair way exclude competitors privately and limits competitors trading opportunities Give them can affect other affairs related to ACTS of unfair competition property or other benefits it is a kind of bribery but different from other forms of bribery Commercial bribery is a cancer in the market economy system is the world common enemy Commercial bribery trodden down since the 1980s of the world s fair According to the World Bank sampling survey the global business bribes total amount more than 2 trillion dollars each year In recent years the German Mercedes Benz the United States Depp and some international well known large enterprises and enterprise group suspected of commercial bribery cause alert the world commercial bribery Many countries and international organizations have taken action or laws and rules of the industry regulating the business transaction or execute special activities to curb commercial bribery The leaders of the organization to become a moral leader in the era of globalization it is necessary to keep in mind as a business leadership is actually a moral educator you and your business to teach people than the church schools and families are more powerful and in depth and thus error behavior affect deeper Let your group of employees in your workplace to learn what is right and what is wrong and learned that the sustainable wrong is not sustainable 1 Business Ethics and commercial bribery Years ago people generally believe that IQ is the only factor in a person s success followed by the discovery of emotional intelligence so that people understand the importance of emotional management is more important than human ingenuity But emotional intelligence is obviously not a panacea Doug Lai Nike is the first to apply the concept of emotional intelligence that one of the people in business management back in the early 90s of the last century Lai Nike had already begun to help the development of the giant enterprises of the Express Group employees EQ and until 1995 the years Daniel Goldman the famous Emotional Intelligence was published Doug Lai Nike in the consultation process and study and found that EQ can make a high degree of self control and interpersonal skills but emotional intelligence is value neutral in most cases it can not help people distinguish between on with the wrong people to avoid doing something wrong Enron followed by a large number of financial scandals is a high emotional intelligence does not enable businesses to avoid Enron Arthur Andersen as an error and this error in the event of enterprises may produce serious or even devastating consequences Thus the EQ does not necessarily lead to success or not enough to guarantee a sustained long term success Lai Nike and his collaborators Fred Kiel another more basic things Moral Intelligence After years of research it is the core of a successful long term business The Nick and Kiel think Moral Intelligence is from the perspective of the universal principles to distinguish between right and wrong capacity and the ability to follow the moral compass German business is a core element of the personal business success Emotional intelligence is important but only emotional intelligence is not enough Back in the mid 90s of last century the Express Group in emotional intelligence training project found that a common characteristic of the best financial advisers is highly confident adverse conditions will not be overwhelming and most important are able to adhere to the action in accordance with the core principles and values This makes them feel very reliable and customers are very willing to entrust the business to them Other consultants even in emotional intelligence training learn to a high degree of interpersonal skills and emotional self control if you can not follow the core ethical principles and values but also will not get the trust of customers and business commissioned Mitsubishi Motors in recent years reluctant to bear the social responsibility product defects also led to a serious decline in sales Lai Nike and Kiel explained by a large number of cases good supplier in Germany not only for personal success lay the foundation but also makes the enterprise has a good reputation and get more business opportunities and better financial performance and the ability to support the long term business development Moreover this competitive advantage is not that your competitors by imitating quickly catching up Moral capacity is both successful entrepreneurs successful management of enterprise internal conditions Start ups have to face from the challenges of integrity responsibility compassion and forgiveness And due to the large number of small enterprises moral influence some ways greater than large organizations thus entrepreneurs more attention to itself and its own corporate culture of the German business Entrepreneurs in particular should pay attention to the following five issues the establishment of a business can help others choose partners wisely stick to your core values the employment shares your values employees your employees and your organization first Commercial bribery is very typical of unethical behavior Commercial bribery refers to the operators of the property or other means to engage in bribery to sell goods or buy goods services or accept the services of acts of unfair competition Commercial bribery is a typical act of unfair competition and is also a long history of acts of unfair competition In every country this behavior exists Such acts harm the legitimate rights and interests of other operators disrupt social and economic order to increase the social worship of money is one of the social enchants at the same time the behavior also seriously damages the interests of consumers so countries laws to stop such acts The code of conduct to combat extortion and bribery in international business transactions as amended in 1999 by the International Chamber of Commerce Will take bribes and racketeering defined as distortion of an important factor in the international trade In many parts of the world racketeering and bribery scandal is a important factor caused the government to collapse If you allow spread this kind of circumstance it will harm the development prospect of the hope of formation after the cold war Free trade must be fair competition the lack of free competition in the trade is harmful to the government and enterprise Exposure of the Daimler commercial bribery case in 2004 illustrates the issue Daimler AG headquarters in Stuttgart Germany is the world s second largest luxury car maker the world s largest commercial vehicle manufacturer Mercedes Benz Mercedes Benz Vans Daimler Trucks and Daimler Financial services company s four business units March 23 2010 U S Department of Justice accused Daimler violating bribery law The U S Justice Department said Daimler bribery in 22 countries to provide benefits to foreign officials to win business contracts According to the prosecution of the U S government in the 1998 2008 periods Daimler and marketing their own products in more than 20 countries under various names bribe a total of over 56 million U S dollars April 1 2010 the German car giant Daimler agreed to pay fines totaling 185 million to the U S government to quell the legal proceedings of the United States a number of government departments of their bribery case The U S Securities and Exchange Commission said in a statement Daimler has agreed to departments to pay 91 4 million in fines The day of the U S Department of Justice also said that Daimler and its three subsidiaries agreed to pay a fine of 93 6 million on more than criminal charges to the Justice Department In addition to the self smashing signs the Daimler with commercial bribery upset the market in the global rules of the game and caused great harm to the fair business environment Daimler would like to have a competitive advantage for large multinational competitors in terms of if bribery back door then other opponents almost lost any opportunity Daimler completely justified becoming the target of public criticism and subject to severe penalties this warning to those who attempt to take orders by bad investment multinationals 2 Characteristics of commercial bribery What we call the commercial bribery is a commercial trading opportunities for the purpose of the affairs of the commission promotion expenses sales promotion costs labor cost repayment of all kinds of cost provide the name of the benefits of tourism at home and abroad directly or indirectly or accept cash physical and other benefits of an act of unfair competition Commercial bribery has the following characteristics a The operator is the subject of commercial bribery including the legal person of goods or services for profit other economic organizations and individuals Either performance for operators in order to sell goods to the bribery where the persons concerned including the staff of state organs and also include other operators or individuals introduces a bribe in order to sell or purchase goods for the operators or individuals can also be expressed b The object of commercial bribery often operators counterparty and have a decisive role and significant impact on commodity turnover c Must be subjective intent its purpose is to get the transaction opportunities or more interests and exclude the honest peer competitors If the purpose of the bribe is not a sale or purchase of goods such as private in order to solve the banks to release a prisoner and bribery are not commercial bribery d Performance objective for violation of state laws and regulations on finance accounting and the Independent Commission regulations the secret payment of property or other compensation and has a lot of concealment 3 Distinguish between legitimate the promotional behavior with commercial bribery In business activities included behavior often happens If this behavior does not impose restrictions may become acts of unfair competition Restrictive provisions of many countries included acts if bundled excessive unfair competition behavior We generally allow small advertising gifts presented in line with commercial practice presented in accordance with the commercial management of a number of small gift as a promotions business practices can allow but the amount is not excessive To correctly distinguish the legitimate the promotional behavior with commercial bribery boundaries we must understand the law comes behavior characteristics The so called bonus is in commercial transactions business incidental to other units or individuals free of charge to gift a certain amount of cash and in kind behavior Comes with behavior in the presence of two legal relationships one of the trading relationship and the second is a gift relationship The trading relationship is the primary relationship gift relationship from relations The purpose of the gift is to make the main transaction more attractive and thus the deal The main of bonus behavior is operators and their trading partners or customers Customers divided into the other party operators and ordinary consumers two categories Therefore depending on the nature of the transaction object comes bundled into operators to other operators and operators of consumers comes two The Bundled behavior is open to the public Comes as a commercial transaction the gift is not specific to the transaction object as long as the operators of the deal the operators will soon be giving any gifts open a transaction object Bonus behavior have more diversity characteristics 4 Harm of commercial bribery Commercial bribery negative influence on the development of commodity economy on the one hand the development of commodity economy the promotion of productivity of the liberation of the great social economy with an unprecedented speed rapid prosperity On the other hand the commodity economy in a historical stage of the production development will spontaneously produce the history of social evils Commercial bribery is accompanied by the development of commodity economy the existence of a social phenomenon is obviously negative negative influence economic development behavior Commercial bribery has become a cancer growth in economic and social structure It destroyed the rules of the fair competition in the market and the market order serious national construction and intensifies social contradictions and even affects stable political economic and social life it has become a public nuisance The commercial bribery fundamentally distort the essence of fair competition so that the law of value can not play a normal role hinder the operation of the market mechanism the market competition becomes a vicious game of bribery interpersonal relationship not only hinder the market mechanism and competition law normal operation to destroy the market order but also destroy the integrity of the operating company interfere with the normal play of the victims of the market mechanism and healthy economic development Commercial bribery make enterprise at a competitive disadvantage affects the production technology progress and product quality improvement and hindered the healthy development of the economy But in reality the face of this potential rule the enterprise itself often can t afford to fight only yield to potential rule in order to avoid competition lost market opportunities and share Limit the commercial bribery is the most direct purpose that is you want to get a legitimate competition rather than business interests The appearance of commercial bribery is unfair briber side balance of tilt affairs Resources and labor to side of the briber is not reasonable This will inevitably become the obstruction to play normal market mechanism thus affecting the reasonable allocation of social resources and technology production schedule Commercial bribery has become a hotbed of breeding for corruption bribery and other economic crime The economy has become in recent years due to the existence of commercial bribery enterprise executives procurement supply and sales personnel and government officials use work will accept bribery misappropriation of funds corruption of business environment the corrosion of the cadres affect social stability and unity of the crime in the field of a prominent problem In China s senior official bribery crimes mainly is the economic crime the vast majority of participating in commercial bribery Therefore against commercial bribery is against corruption This is a new anti corruption battlefield Commercial bribery is direct damage to the healthy development of the global economy Disrupt the global economic integration to promote the reasonable and effective allocation of resources in the market principle However some enterprises in order to legitimate commercial interests don t abide by the rules of the game and destroy the normal economic order hinder the progress of science and technology and industrial development Commercial bribery distorted the essence of market competition The principle of fair competition in the market is to maximize customer delivered value the customer delivered value is the difference between total customer value and total cost legal market share Enterprise through the bribery way to get a victory for the radically distorts the essence of market competition greatly hurt other competition participants enthusiasm finally fall into a vicious circle bribes to win instead of quality win 5 The approach of the international of commercial bribery FCPA the United States is currently the most important regulatory corporate foreign bribery law enacted in 1977 designed to limit the behavior of individual U S companies to bribe foreign government officials and the accounting system of the listed companies in the United States made requirements For corporations and other business entities crime punishable by fines of up to 200 million U S dollars natural person will be punishable by a fine of up to 100 000 dollars and five years imprisonment Moreover in accordance with the provisions of the selective penalty law the amount of fine may be higher than the more actual fine may be twice the bribery conspiracy interests Since the 1990 s the international community to take a series of legal documents and strengthens international cooperation law of commercial bribery The United Nations convention against corruption declare against corruption and bribery in the international commercial trade organization for economic cooperation and development of anti bribery convention to prohibit foreign government officials in the international commercial trade the international chamber of commerce against international racketeering and bribery criterion the Organization of American States anti corruption convention the Council of Europe s anti corruption organization of the state laws and regulations The OECD take effect in 1999 banning convention against commercial bribery of foreign government officials in the international business transaction request signatories will get
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