Corruption, business globally.

At one point or another anyone who pursues business internationally is going to encounter corruption - it's just a matter of time. If the business opportunities being pursued happen to be in developing countries, economies in transition or communist states, then the likelihood and extent of such encounters will be all the greater. This is not to say that corruption does not occur in the western developed economies, it does, but it is less commonplace, less glaring and relatively far less costly than in other parts of the world.

The most commonly encountered forms of corruption are typically low cost. You may be required to pay some unexpected charge or fee by a customs official for reasons that are unclear or highly questionable. You may be overcharged for a service provided by a government department. A minor government clerk or official may require some fee, gift or favour in order to provide necessary documents, appointments, approvals, etc. uncommon. You may even be accused of a minor offence as a means of extracting payment from you in order to get the matter dropped.

On other occasions you may find that you can't get what you need through government or regular business channels. However, you are informed of, or otherwise become aware of, other possible options. This could range from something as simple as being assisted by people with connections to dealing with the underground economy and petty lawbreakers.

At the far end of the corruption scale lie big-dollar dealings with bribed officials, corrupt politicians and organized crime. In some countries these three elements work together.

There is nothing new about this. Twenty-five years ago it was common knowledge that any foreigners who wanted to pursue lucrative business opportunities in Nicaragua would have to buy their way into the good books of the Samoza government.

The history or root cause behind foreign corruption varies. In some countries it is long-standing practice for government workers and politicians to make such additional monies as perks of office. In other instances the sting may be something akin to a crime of opportunity.

It's also important to recognize that the term businessman doesn't always have the same connotation abroad as it does here, and often with good reason. Bribery of government officials by businessmen is a practice found in numerous developing countries.

In the recently Commonwealth of Independent States republics a fair number of the first generation of business people came from the underground economy, organized crime or were opportunists from the old regime who were in a position to take advantage of newly arising business opportunities. Did someone say business ethics? As a foreign businessperson, you might occasionally get tarred with the same brush of contempt applied by the locals to such people.

So where does this leave the Canadian businessperson looking for new opportunities abroad? Corruption, minor and major, is a possible dimension of going global that has to be recognized. Know where you are going, their history, their culture, their politics, the economic situation and their business environment. Find out what are the cultural norms such as gifts, the use of local intermediaries and the payment of commissions. The economic development commission and our trade commissioner service can give you a fairly good assessment and some sound advice about such matters. So can numerous other sources. It also wouldn't hurt to get some informed legal council around these issues.

Once you have all of this under your belt, you will need to look into your own company's views and policies on what is acceptable business behaviour and practices in reference to the pursuit of business abroad. In doing this, legal considerations are always a factor, as are economic, but very often it comes down to a personal call by the people directly involved as to where they draw the line on dos and don'ts.

Graham Clayton, economist and general manager, international, of Confederation College.