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For awhile the use of facilitation payments to obtain favour (s) has been controversial and this is due to people considering it as being a form of bribery. While Bribery is the corrupt payment or receipt of anything of value in return for official action, facilitation payments involve paying a small sum of money to a public official to ensure they carry out their duties promptly or at all. The purpose of this paper is to review and compare two articles on facilitation payments and corruption in multinational corporations from different perspectives such as their main points, arguments, implications to society, and others. This review will analyse the article “Facilitation payments: culturally acceptable or unacceptably corrupt”, as written by Robert Bailes, and “Corruption and companies: the use of facilitation payments”, written by Antonio Argandona.
Bailes sees facilitation payments in multinational corporations (MNC’S) as a form of corruption. He argues that although there are some claims that there is a distinction between facilitation payments and bribes, this should not be so…
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…from any cultural perspective. Bailes put up strong arguments as to why facilitation payments should be prohibited due to the negative consequences it produces and the adverse effects it has on most multinational corporations. Argandona took a general perception on facilitation payments, noting that in some societies, it is regarded as a way of getting business done more effectively or at all, although he also agrees that facilitation payments may represent a step towards a culture of corruption in a society, hence should not be tolerated.