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Payment Types

In: Business and Management

Submitted By anjalibsingh
Words 574
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Ethical acceptability of the three types of payments: Commission, Facilitation payment or Bribe

The payments done to anyone to affect or influence one’s action or decision is labelled under few names like commission, facilitation fee or bribe etc. There is insignificant difference between all these terms. The focus in this paper is on the ethical acceptability of these payments.

The term ‘Bribe’ is generally used when money, gift or something of value is offered to any person to perform something which he is not authorised to do. This is considered as unethical and can also be considered as an offence under the law of corruption which makes it illegal in some countries. The other name ‘Facilitation Fee’ is given to the payment which has been done in various forms to someone who is obligated to perform a duty but offered to facilitate the permission or to hasten the process. Facilitation fee is considered as ethical or unethical based on the kind of work done or the advantage gained through it. Commission or service fee paid is considered acceptable and commonly practiced as it is pre-defined in most of the cases and remains same for all.

There are no set rules or definitions to explain bribery. Local customs and laws often describe its boundary. Expressing moral approval or disapproval of payment done in any form is influenced by different social and cultural norms. For example, a facilitation fee is permissible to charge and pay in United States. It does not fall under Corruption Act whereas it has no exception in United Kingdom and is not acceptable. These payments are also termed as ethical when the amount of fees paid and nature of service taken is transparent and does not over shadow the eligible. When the payment done is illegal, it is clearly unethical. When the briber or bribee is taking an undue advantage or is inappropriately influencing some…...

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