INTRODUCTION

The word bribery carries with it different meanings, depending upon the values and practices of the country involved. In the West, bribery of governmental officials is viewed as economically inefficient, politically destabilizing, morally corrupt, and, of course, illegal. In other countries, bribery has been endemic – a necessary evil in accomplishing business goals. By 1977, the United States viewed bribery as no longer acceptable in the global marketplace. The U.S. Foreign Corrupt Practices Act, which came on the heels of the Watergate and Lockheed scandals in the United States, made illegal the bribery of foreign officials to obtain or retain business. Yet, the United States stood alone in its efforts.

The effects of anti-bribery statutes are mixed. On the one hand, they provide an effective shield to a company against bribery attempts or threats; that is, the company can argue that bribes are illegal in its home country. Such illegality could potentially subject the officer or employee to criminal punishment, as well as embarrass the host country's government. On the other hand, unless parallel prohibitions are in place for foreign competitors, the prohibition places the company at a competitive disadvantage. At least one study suggested that U.S. companies lost almost $45 billion in contracts as a result of the prohibition.