The New Nation - Internet Edition

Nation Business Report

Companies based in emerging economic giants including China, India and Russia are perceived to routinely engage in bribery when doing business abroad, the Berln-based graft watchdog Transparency International says.

The 2008 Bribe Payers Index said, released on Tuesday, ranks the likelihood of firms from 22 top exporting countries to bribe abroad.

These 22 countries account for approximately 75 per cent of total foreign direct investment outflows and export goods worldwide.

Belgium and Canada shared first place in the 2008 BPI with a score of 8.8 out of a very clean 10, indicating that the firms in the countries are seen as least likely to bribe abroad. On the other hand, Russia ranked last with a score of 5.9, just below China (6.5), Mexico (6.6) and India (6.8).

The Index, last published in 2006, is based on responses of 2,742 senior business executives working in 26 countries.

The BPI also showed public works and construction companies to be the most corruption-prone when dealing with the public sector, and most likely to exert undue influence on the policies, decisions and practices of governments.

"The BPI provides evidence that a number of companies from major exporting countries still use bribery to win business abroad, despite awareness of its damaging impact on corporate reputations and ordinary communities," said TI chair Huguette Labelle.

He said the governments should redouble their efforts to enforce existing laws and regulations on foreign bribery and for companies to adopt effective anti-bribery programmes.

Bribe Payers Index once again stresses that corruption is a global problem demanding global approach," Iftekharuzzaman, executive director of Transparency International, Bangladesh, said.

He said it was disappointing that companies from developed societies continue to engage in bribery in developing countries taking advantage of weak institutions, laws and enforcement.