Corporate America could coach the International Olympic Committee on how to protect itself against bribery, according to a UC Davis professor who researches white-collar crime and business ethics.
Michael W. Maher, also an associate dean of the Graduate School of Management, says the allegations of bribery against Salt Lake City's bid committee are much like those leveled at U.S. industry in the 1970s when major corporations were accused of bribing foreign government officials.
He says cities bidding to host the Olympics and American companies doing business in certain foreign countries face the same issues. "What is the line between small gratuities, lavish hospitality, contributions to decision-makers' favorite charities and bribes?"
"What might be considered unethical in one country could be standard practice in another," Maher adds. "The IOC must be the constant."
Following the enactment of the Foreign Corrupt Practices Act in 1977, many companies adopted additional internal controls, trained decision makers about proper conduct, provided ombudspersons for whistle-blowers and expanded audit staffs.
Maher says the IOC should:
* define in its policies not only improper payments and gifts but also the sanctions for paying and receiving bribes;
* provide training for IOC members and staff regarding such policies and require them to sign a code of conduct;
* establish a standing committee to commission audits and review information provided by whistle-blowers;
* and mandate bid committees to establish an outside review panel to recommend internal controls and detect improper payments.
Maher has published on the economics of bribery, changes to companies' internal controls implemented in the wake of the 1970s scandals and the response of auditors when they learn their clients have paid bribes.
Media Resources
Julia Ann Easley, General news (emphasis: business, K-12 outreach, education, law, government and student affairs), 530-752-8248, jaeasley@ucdavis.edu