does Bribery help or hurt

882 words 4 pages
Bribery in the business world is a very polemical term, where it involves the corruption between the private sector and the government. The article “Does bribery help or hurt firm growth around the world?” by Jessie Qi Zhou & Mike W. Peng provides a good review and examination of how bribery plays a role in the growing process of a firm and what implications or consequences it can bring. The article brings two important points of view; the first one is focus on what levels the firms have to use bribery in order to obtain benefits (which depends in what country the firm is located), the second point is in what degree bribery will benefit or injured the development of the company. These points are very accurate in the sense the article …show more content…

The authors state that small firms are not capable or have enough the monetary fund to use bribery as approach to gain benefits, and “they argue that big corporations are more likely to engaging in strategic bribery while the small firms are forced to engage it”. As consequences small firms have the tendency to grow more slowly than usual and the real beneficiaries are the large firms. Also in article use a study that demonstrates bribery has negative effect on small and medium enterprises performance and not be able to compete in a competitive market.
In conclusion, these authors are strongly expressing that bribery is sensitive topic that it has to be approached with carefulness. In regards of the article, the reader can find really good points of how bribery is an element that assists the firm to some benefits where the entity can be ahead of their competitors or be aware ahead of the news regulations from the government. The factors of Financial Market Development, the Policy uncertainty and the Legal system quality play an important part in stimulating the firms to use bribery. And finally how small firms are required by hostile business environment to practice bribery as tactic to survive, although it might affect in negative way the level of performance or their own growth. But it is pretty clear that the level of corruption between the private sector and the government is becoming impossible to control for


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