There are risks of corruption and bribery
The potential for corruption or bribery in international business could pose a risk to firms. It can happen when companies offer or accept illicit payments for benefits or treatment in return. This could pose significant risks to the company’s reputation as well as its relationships with other stakeholders. If a company is caught engaging in corruption, this could cause damage to its reputation, as well as erode trust among customers and employees.(Transparency International. (2015). This can lead to decreased sales and profits, increased regulation scrutiny, and penalties. A company that engages in corrupt practice in foreign countries may be perceived as using local resources and people in order to gain its own advantage. This could lead to social unrest and harm the company’s reputation, as well as contribute to economic inequality in the host country.Additionally, corruption and bribery can have negative environmental consequences, as they can facilitate the exploitation of natural resources and undermine efforts to promote sustainable development. If a company uses corrupt methods to obtain natural resources it can cause environmental damage and local community harm.(World Bank Group. (2021)) Cont…
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