Monday, January 25, 2010

Is it okay to pay a bribe if...

One of the talks at the TED India conference in Mysore was by a woman called Sunitha Krishnan. She basically founded an NGO to fight sexual slavery.

(The link to that talk is below and definitely worth watching.
http://www.ted.com/talks/sunitha_krishnan_tedindia.html?awesm=on.ted.com_252W&utm_medium=on.ted.com-SunithaKrishnan&utm_source=topsy.com&utm_content=site-custom)

When Krishnan’s talk was over, and the standing ovation subsided, a woman in the audience stood up and said that she would donate US$10,000 to Krishnan’s organisation if ten other people would make the same commitment. Within moments, 10 other hands were raised. These weren’t empty promises. Krishnan says in her interview that she has received around US$200,000 so far, but because she “did not bribe an income tax official”, has been asked to pay taxes of around half that amount. Go figure.

But it got me thinking - why doesn't she just pay the bribe? By paying say $10,000 in bribes, she'd have $190,000 for her NGO, versus $100,000 by not paying the bribe. I'm sure that extra $90,000 would go a long way. It may save 10 children from the sex trade.

I know that in principal a bribe is wrong but what's worse: paying a $10,000 bribe and potentially doing 'more good' or losing $90,000 to taxes and potentially doing 'less good'?

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