NGO in China 2%
New Report Details Bribery Demands in China
http://www.ethicsworld.org/corporatesocialresponsibility/businessandcorruption.php#ChinaBribery
First report from TRACE International gathering data from its online bribe reporting tool, BRIBEline
One year after its launch, TRACE International has released the first country-specific data from its online tool for reporting bribe demands, the Business Registry for International Bribery and Extortion, or BRIBEline. One hundred and forty-eight anonymous reports about bribery demands in China were filed between July 1, 2007, and June 30, 2008, according to the U.S.-based, non-profit association which offers anti-bribery counsel to multinational corporations.
Of the bribes reported in China during this period, 85 percent were requested by an individual affiliated with the government, including 11 percent by the police, 11 percent by a member of the judiciary, 11 percent by a ruling party official, and 52 percent by other government officials.
Nearly three-quarters of individuals reporting a bribe said they had been asked for bribes more than once. Almost one-fifth of those who reported being asked for bribes multiple times reported that they had been asked more than 100 times. The most commonly requested form of bribe demand was cash or a cash equivalent.
According to Wrage, most international corporations are not well-prepared to respond to demands for non-monetary bribes. "What has been reported this first year is probably just the tip of the iceberg when it comes to representing the amount of bribery which occurs, Wrage said, but we are confident these reports can be used to help companies better understand the kindsof bribe demands they are likely to encounter and from whom."
The reports for the first year also showed that the majority of bribe-demands reported in China are for avoiding a harm or disadvantage, rather than gaining an advantage. More than half of the bribe demands reported were for services or actions to which the person or business was already entitled, including to ensure the timely delivery of services, for avoidance of a harmful action, or for payments due for services already rendered. Only 20 percent of the bribes were requested in exchange for gaining new business; 9 percent for favorable treatment by a judge, government employee or other government official; and 3 percent for exercising influence with or over another government official. Fourteen percent of those reporting characterized the bribe demand as falling in some other (unspecified) category.
"We rolled out BRIBEline as an anonymous, state-of-the-art tool to capture information about actual bribe demands, as they are experienced by people doing business all over the world," said Wrage. "Our experience with this tool in the first year shows us this is a viable way to collect specific information that allows us to better understand the landscape of bribery and extortion in China and elsewhere."
Want to know more about BRIBEline? See EthicsWorld coverage.
Posted 7/18/08
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