HP's Moscow Offices Raided In Bribery Probe 106
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.'"
Bribes are an everyday part of business at times. (Score:5, Insightful)
"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?
Re:Bribes are an everyday part of business at time (Score:2, Insightful)
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.
Re:Bribes are an everyday part of business at time (Score:3, Insightful)
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 [reuters.com]
"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."