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HP's Moscow Offices Raided In Bribery Probe
FrankPoole writes "Hewlett-Packard's Moscow offices were raided Wednesday as part of a bribery investigation by Russian and German authorities. The news was first reported by The Wall Street Journal [currently paywalled; Reuters also covered it], which wrote that HP is suspected of allegedly paying out nearly $11 million in bribes to secure a major Russian government contract several years ago via a German subsidiary. Ironically, the contract was with the Prosecutor General's office of the Russian Federation, which will now play a role in investigating HP. While HP knew of the investigation as far back as December, the company did not disclose the information in any SEC filings. Instead, in its most recent quarterly report, HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'"
They didn't pay enough.
If someone says he and his monkey have nothing to hide, they almost certainly do.
HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations
Thank god they specified foreign nations, cause in the US that'd be wrong
Yeah. Would you choose a neurosurgeon who pokes around people's brains in his spare time? I wouldn't.
Indeed. In 3rd-world countries you must bribe if you want to compete because your competitors are bribing.
Table-ized A.I.
In many other nations, the distinction between the laws on paper and accepted practices is much greater than it is in the United States (except maybe in Chicago or Philadelphia...). For instance, in most of the US, if you try to bribe a cop to get out of a traffic ticket, you're going to jail most of the time. In Mexico, the bribe -- la mordida -- is pretty much expected, and you're more likely to go to jail if you DON'T offer it, even though bribery is illegal in Mexico. So HP actually has a point here.
Looks like HP made the mistake of dealing with a dishonest politician... defined as one who won't stay bought.
It was Fiorina at the time.
If you link from /. it is paywalled. As always, if you link from Google, it is all free. Just paste WSJ headline into Google, and go:
http://www.google.com/search?q=H-P+Executives+Face+Bribery+Probes
First hit is the article in full.
Funny how Google is a better front end to WSJ than WSJ itself. Maybe WSJ is shooting itslef in the foot with this policy. (Same with Mercury News and others)
don't cut it off www.mgmbill.org
In many other nations, the distinction between the laws on paper and accepted practices is much greater than it is in the United States
Too bad for US corps, we have this law here called The Foreign Corrupt Practices Act that makes it illegal to bribe foreign officials.
When information is power, privacy is freedom.
While i didnt RTFA, but just to focus in on one aspect of the summary,
"HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'"
While they may have been wrong in this situation, the statement itself is very true; After spending some time in china for instance, bribery is certainly prevalent. Also when we examine the US system, with lobbyists and contributions... is it really that different?
Instead, in its most recent quarterly report, HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'
Apparently they didn't read their own Ethics & Compliance materials. As a former HP employee, I can tell you that every year the employees are required to take an online course in Ethics and Compliance. Part of those materials mentions that HP won't participate in any activities that are expected practice in other countries, but forbidden in the US. The specific example of bribery was included. Furthermore, simply knowing that a partner or subsidiary is doing something unethical on behalf of HP is forbidden. The act of a business partner bribing a customer to secure a contract for HP was one of the examples. In fact, there were even videos with actors portraying these situations. Then again, maybe the training materials grew out of this specific case.
I hope these individuals are dealt with with the verocity China sets forth on individuals breaking laws of this caliber.
It amazes me how ethical behavior has taken a back seat to profits (see: Massey Energy, Maydoff, and the cause of that... oh what was that thing... uh, oh yea, global recession).
How many of you were awstruck when Google pulled out of China? I was taken aback. Shocked that I was shocked. And I asked myself why that is?At the threat of losing a huge financial opportunity, I was amazed that a company didn't take it lying down. They said 'F you' and threatened them back.
That's the way it should be and the world needs more of it.
Respect +10, Google.
I think that punishing the people who accept bribes is more important than punishing those who bribe. It's not really fair, but if the financial climate requires bribery then obviously something is wrong. Punishing business interests for trying to succeed could lead to lowering the incentive to do business within the region. But by making sure that no one wants to accept a bribe, then you change the business climate. People accepting bribes are the real criminals.
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Which effectively prevents a US corp from doing business in many countries if held to, including Mexico, Russia, China, etc. It is not more meant to be obeyed than the laws against bribery in the nations where bribery is the de facto method of doing business. It's just a hammer for somebody to use if you piss off somebody. You go to China but you can't do business unless you pay the bribes but if you (or the person you paid the bribes to) ever piss off the wrong person in government, then they'll hit you with those bribes they demanded. Then the US government will go "gosh, we can't support that", and the hit you with their hammer too as a form of appeasement to various parties. Just like many of the laws in the US and the powers passed after 9-11, they expect you to break something, simply because they want to have something to use against you if they need the excuse.
Those dealing with such countries are stuck between a rock and a hard place. If they don't bribe they won't suceed, if they do bribe and someone decides to make an example of them for whatever reason then they may end up doing time.
And that, ladies and gentlemen, is why corruption destroys national economies. Investors and multinationals understand this fact, and only the most desperate or stupid choose to do business in such an environment.
Russia has been hanging foreign and domestic corporations out to dry for a decade using the corruption catch-22. NTV, Yukos... I'll go out on a limb and say that any foreign corporation doing business in Russia is insane. Sorry, my Russian Slashdot friends, you're great people, but your government is a business deathtrap.
http://www.reuters.com/article/idUSTRE62E1SU20100315
"My recommendation is: 'Maybe you should reconsider doing business in Russia,'" she said. "I am considerably more optimistic about Nigeria than I am about Russia on this issue."