Thursday, December 29, 2011

Corporate Corruption

Most of the times, when you hear Filipino talk about corruption, you can almost be always certain they are referring to an elected official or a government agency.

That's why, now and again, you'll hear people proposing the privatization of government in order to lessen corruption and there is some merit to the idea.

Except, of course, that corruption can exist in a corporation just as well.

Demanding kickbacks from suppliers and not paying suppliers while collecting full amounts from clients is just the tip of the iceberg.

Hiding the real earnings of the local subsidiary from the international mother corporation is the bigger game, I suppose.

Of course, this is all too hard to prove.

Suppliers would rather keep quiet and hope to get paid some time in the future.  The international mother corporation, as long as it gets whatever revenues that it expects, won't bother to look into the books of the local company.

Of course, then again, there's all sorts of other ways to keep people quiet.  Black mail and bribery are the most often employed techniques.

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