Organized Crime In The New Millennium

For example, in 2006, German prosecutors conducted a wide-ranging investigation of
Siemens AG to determine if Siemens employees paid bribes in exchange for business.
In some cases where the system of law is not well-implemented, bribes may be a way
for companies to continue their businesses. In the case, for example, custom officials
may harass a certain firm or production plant, officially stating they are checking for
irregularities, halting production or stalling other normal activities of a firm. The
disruption may cause losses to the firm that exceed the amount of money to pay off the
official. Bribing the officials is a common way to deal with this issue in countries where
there exists no firm system of reporting these semi-illegal activities. A third party, known
as a White Glove, may be involved to act as a clean middleman.
Specialist consultancies have been set up to help multinational companies and small
and medium enterprises with a commitment to anti-corruption to trade more ethically
and benefit from compliance with the law.
Contracts based on or involving the payment or transfer of bribes ("corruption money",
"secret commissions", "pots-de-vin", "kickbacks") are void.
In 2012, The Economist noted:
Bribery would be less of a problem if it wasn't also a solid investment. A new paper by
Raghavendra Rau of Cambridge University and Yan Leung Cheung and Aris Stouraitis
of the Hong Kong Baptist University examines 166 high-profile cases of bribery since
1971, covering payments made in 52 countries by firms listed on 20 different stock
markets. Bribery offered an average return of 10 to 11 times the value of the bung paid
out to win a contract, measured by the jump in stock market value when the contract
was won. America's Department of Justice found similarly high returns in cases it has
prosecuted.
In addition, a survey conducted by auditing firm Ernst & Young (EY) in 2012 found that
15 percent of top financial executives are willing to pay bribes in order to keep or win
business. Another 4 percent said they would be willing to misstate financial
performance. This alarming indifference represents a huge risk to their business, given
their responsibility.
Sport Corruption
Referees and scoring judges may be offered money, gifts, or other compensation to
guarantee a specific outcome in an athletic or other sports competition. A well-known
example of this manner of bribery in the sport would be the 2002 Olympic Winter
Games figure skating scandal, where the French judge in the pairs competition voted for
the Russian skaters in order to secure an advantage for the French skaters in the ice
dancing competition.
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