Nepotism&Bribery

2. Nepotism
0 Nepotism is favoritism
granted in politics or
business to relatives.
0 Practice of appointing
relatives and friends in one's
organization to positions for
which outsiders might be
better qualified.

3. Nepotism
0 A typical example of an unethical behavior.
0 Most common in Italy.

4. Is Nepotism so Bad?
0 Nowadays, inconsistent legal frameworks and
corruption makes businesses rely on nepotism.
0 “ Nepotism is very bad ” not approved by some
executives.
0 Southwest Airlines encourages nepotism, among
13400 employees 400 are couples.
0 However, by these it can not be said that nepotism is a
good thing

5. Bribery
0 Definition- an act of giving money or gift that alters
the behavior of the recipient.
0 An illegal act and both sides are responsible.

6. Why is bribery wrong?
1. Prevents markets from working
effeciently
2. It prevents open access to all
competitors on equal terms
3. Competitors are prevented from
competing on the merits of their
products or services
4. Often leads to higher prices

7. Can bribery be
justified?
0 Can gifts not be given without any intention to
influence but just as an expression of respect or
friendship?
0 If my competitors are paying bribes, do I have a
choice?
0 How can I hope to suceed in country where it is
common practice to pay bribes and decison makers
expect it, without paying bribes.
0 I may not be able to afford the luxury of staying out of
such markets.

8. Statistical data
0 One person in four has paid a bribe to a public body in the last
year, according to a survey carried out in 95 countries by
Transparency International.
0 The poor record of some African nations on bribery stands out.
Sierra Leone has the highest number of respondents admitting to
having paid a bribe - 84% - and seven out of nine of the countries
with the highest reported bribery rate are in sub-Saharan Africa.
The countries with the lowest reported bribery rate are Denmark,
Finland, Japan and Australia, they all have a bribery rate of 1%.