When Should Organizations Be Liable for Transnational Bribery?

Abstract

When should organizations, as opposed to individuals, be the targets of sanctions for transnational bribery? The OECD paradigm calls for the net of liability to be cast widely, not only over individual perpetrators but also over the organizations they represent, and perhaps also over companies that own, merge with, or acquire those entities. There have even been moves to sanction states whose officials have solicited or accepted bribes, including by barring recovery of compensation from the bribe payer. Organizational liability is typically justified as a way to induce private regulation, which is presumed to be relatively effective and efficient. However, the effectiveness of self-regulation is contingent on factors such as the presence of complementary legal institutions and expertise. There are also questions about its expense and legitimacy.