When a Gift Becomes a Bribe

In the 1980s, I conducted the first survey of international business gift customs. My research included an examination of what separates a business/government gift from a bribe. Little had been written previously about either subject, so the study and pocket-sized book became the source of guidance for corporations and governments. The U.S. Chief of Protocol's office contacted me about appropriate gifts, including ones for the state department and the President. The subject had a light how-to-not-offend (Don't give a clock in China) aspect and a very serious what's-a-bribe side as well .

During an international finance conference in Zurich shortly after the study was completed, several financiers were talking with me about the Foreign Corrupt Practices Act of 1977 (amended in 1988 and 1994). When one of them told me: "Your country is hypocritical about gift practices and bribery," there were general nods of agreement. After I asked him to be more specific, he explained that the FCPA ties the hands of those who worry about such things, but it doesn't stop those who don't. He added remarks to this effect: "There's always a way -- and your country finds those ways, too. Yet, you look down your noses at us and make us appear unethical."

I defended the U.S. and its bribery laws, saying "There must be efforts to limit bribery internationally for both moral and business reasons. " And "The U.S. was simply taking a lead by placing limitations on its own businesspersons," I argued, "not suggesting that other countries were comparatively unethical." My challenger nodded and smiled, satisfied that his point had been well taken by those gathered around us. Until the advent of the latest government bribery scandals, I'd nearly forgotten his expression of veiled contempt for laws that are so easily broken and spuriously applied.

There is a point at which gifts no longer reciprocate for courtesy or kindness and become strategic - incurring some obligation or invoking a favor - or ulterior motive gifts - obvious bribes. Distinguishing between gifts and bribes is difficult at times, but critical to avoiding abuses in government. The Lobbying Disclosure Act of 1995 was never adequate to the task. You could drive a truck through the loopholes. Russ Feingold's proposed reforms still allow lobbyists to unduly shape decisions by members of Congress. The amounts are lessened and there is more reporting of what might be suspect activities, but clever lobbyists will get around these rules as well. Trips can still be paid for by outside interests. Just make sure they don't call themselves "lobbyists" and that no one who does is on the plane.

Truly laughable is the "cooling off period" during which former legislative and executive branch employees must wait before becoming lobbyists themselves. The Feingold bill would change it from one year to an onerous two years. It should be changed to NEVER! Surely these people can find jobs that don't prey upon the connections they made while they were supposedly representing us. This is just more nest feathering by people who should be above such things. It's some Senators and Congressmen purposely using government office to finagle their way into high-paying jobs and others acting their shoe size rather than their age.

It is hypocritical for the U.S. government to pass and enforce FCPA standards around the world, while the stench of massive domestic bribery surrounds high government officials. It's time for a huge gift tag sale on the Capitol mall. Can you imagine members of Congress and the White House staff running about grabbing paintings off the walls and tossing sculptures out the windows? We'd have another massive boon for charities -- Superbowl tickets for Big Brothers of America and "fact-finding mission" plane tickets to Paris for the Salvation Army.

Instead of such a thorough cleaning of our governmental house, reporters are now telling us lobbyists will keep a low profile for a few months, while the Abramoff scandal passes beyond media attention. Then they can go back to finding ways to pay off the people we vote into office. You have to wonder what ever happened to persuasion as a means of influence - using your brain, not your wallet?

"I'm not an attorney," as Condoleezza Rice said on Meet the Press - but there ought to be far stricter laws against this kind of thing. The Feingold bill is a good start, but that's all it is. If you can buy Congress, why bother with votes? The whole thing is hypocritical. Some poor kid in D.C. who takes a loaf of bread off a shelf could be going to jail, but the fat cats up the street are mincing words so they can still have luxurious vacations.

If I again meet the man from Zurich, I will have little to say in our defense and, no doubt, he will righteously -- and rightly -- smile.

See additional gift/bribe info