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Ask HN: How have you dealt with corruption?

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Re: Ask HN: How have you dealt with corruption?

#42
post #23

Earlier quoted context omitted.

Already briefed my partner. Calling him again in a few minutes. Calling the FBI is tricky. I don't have any proof and as a small company, I would prefer not to have a scandal (even with us on the right side of it) be our first introductiion to the rest of the small community. In essence, what I am saying is doing the perfectly right thing would hurt us. I am thinking seriously about anonymously reporting this though.…

Do the country a service and stand up for what is right. You may lose this sale, but you will have your honor and integrity.

Let's outlaw corporate lobbying before we worry about some small-fry with a few-thousand dollar software contract.

Re: Ask HN: How have you dealt with corruption?

#43
Running an IT service business for 7 years, I've run into a number of dubious situations. Heres a couple.

A client introduced me to a salesperson who works for a competitor company. We sat down for coffee, and his opening line was that he has a million dollars of deals in the pipeline (which would have been a very welcome addition to the bottom line), and he was interested in bringing all these customers to my business. Immediately after this, he asked for a very large base salary, which was a bit surprising given the time passed in the interview, but I suppose within general norms.

In any case, I was interested in bringing him on board, but since we're a smaller company, I'm very careful with my hiring decisions. As you all know, a wrong hiring decision can cause all sorts of problems and headaches for a small focused team.

So I started by asking him some more questions about his background, and some typical interview questions. Then he says :

"Actually, I know a good way we can start our relationship. There's a guy at work I really hate - a total prick. What if I were to give you all of his leads before he closes them? I can't give you an introduction or anything of course, but I can give you the client information, and the decision makers names, and you would have to sell them yourself! What do you think?"

I was taken back, and I responded : "Well, I'd need to examine the ethics and legality of that arrangement."

He responded : "Hey - we're all ethical here. This is just a way for us to start collaborating."

I ended the interview, already decided that I wouldn't hire him. If he was offering me this deal after knowing me for 20 minutes, how could I trust him as my salesperson once I hired him?

After this interview, I called a mentor to get his take. His immediate response was "Here's what you do. You call the CEO of the company he works for. Say 'I know we're competitors, but some information directly relevant to your company has come my way.' Meet up with him, and tell him exactly what happened. He'll be fired on the spot."

I didn't end up doing that. The salesperson was not the most moral of people, but he had a family to support, and it's very difficult to find a job in this down-market.

Another unrelated story - a customer manager who was a friend came to me and asked me for a kickback from the project he awarded me. Thinking back, he might not have realised how difficult a situation he put me in. Providing him with any kind of monetary payment would have been a touchy situation for many reasons, so I sat down with him and said something along the lines of :

"Actually, we're already running right against our profit margins for this project. Since you're a friend, I gave you a much bigger discount than I normally would give. I'd end up losing money here if I gave you a finders fee for this particular project. The fee I'd be able to pay probably wouldn't be worth your risk in accepting that kind of fee, or my risk in paying it. But, if you come across any other opportunities in different companies, I regularly provide finders fees for those situations so I'm happy to organise that for you."

By framing any kind of payment as risky, and by telling him we're not making much from this project because of our friendship, he dropped the issue, and everything turned out alright.

In summary - I tend to deal with corruption by avoiding it or deflecting it wherever possible. I don't tend to take the aggressive route of reporting it, or going after people.

Re: Ask HN: How have you dealt with corruption?

#44
post #13
post #2

I've dealt with this when I had to mop up after a predecessor made a habit of taking bungs at a government department. My advice to you is that you should have absolutely nothing to do with this. You should forget the sale now (it's a possibility that it was only entertained in the first place because your associate thought the payoff would be likely). If you can anonymously tip off this person's superior one way or…

Do not tip off the supervisor. Go to the FBI.

The FBI does not care if some low level bureaucrat at (say) the New York City Department of Education offered a pay-for-play deal. Better advice is to take five minutes to Google up the department which handles internal ethics issues in whichever organization it is and contact them. Granted, you don't go to the guy's supervisor.... but you also don't leap immediately to the feds.

Re: Ask HN: How have you dealt with corruption?

#45
post #15

Earlier quoted context omitted.

The dilemma is clearly between the larger good and my selfish interest in not seeing my company hurt. The industry we operate in is very narrow and while losing thus customer alone would hurt us a lot, having someone there say negative things about us could destroy us. I have already written off this customer, because if nothing else, the stress of having to manage a corrupt person while not indulging in corruption i…

IANAL but it might not be a bad idea to take a few minutes and write down who said what and when, while it's still fresh in your mind. Maybe even in some official company record ("captain's log"). Ya never know . . .

I agree. If the situation escalates to the point where you can't avoid legal action (e.g., your contact accuses you of doing something corrupt), it would be useful to have a paper trail for your side of the story.

Re: Ask HN: How have you dealt with corruption?

#46
I've been trying to compose a response to this, describing a similar situation I was involved with. I just can't do it without saying more than is prudent. I was slow to catch on to what was going on but I did the right thing when I did and the guilty weren't punished. I don't mind talking more about it privately. The lesson I learned was that there are a lot of good, honest, and competent people around but there a few who aren't and I wish I hadn't wasted time and frustration with people who were willing to put up with that corrupt few. You've got a tough problem but it sounds like you have good judgment. I hope it works out well for you.

Re: Ask HN: How have you dealt with corruption?

#47

Running an IT service business for 7 years, I've run into a number of dubious situations. Heres a couple. A client introduced me to a salesperson who works for a competitor company. We sat down for coffee, and his opening line was that he has a million dollars of deals in the pipeline (which would have been a very welcome addition to the bottom line), and he was interested in bringing all these customers to my busine…

Thank you for sharing your experiences. They gave me some very useful perspective.

Re: Ask HN: How have you dealt with corruption?

#48
post #11

So, really and truly this government guy hit you up for a bribe? Tonight, write down every detail, sign and date (ideally with witnesses). Tomorrow morning, call the FBI. After speaking with the FBI, unless they advise otherwise, brief your CEO. Only do these things if you are really, really sure the guy actually hit you up for a bribe but if you are - I think you should do these things. -t

Really good advice - write a detailed account of what happened as soon as possible. Be VERY detailed.

Re: Ask HN: How have you dealt with corruption?

#49

I've been trying to compose a response to this, describing a similar situation I was involved with. I just can't do it without saying more than is prudent. I was slow to catch on to what was going on but I did the right thing when I did and the guilty weren't punished. I don't mind talking more about it privately. The lesson I learned was that there are a lot of good, honest, and competent people around but there a f…

I understand not wanting to share specifics. Thanks for sharing your experience, your good wishes and your offer of advice.

At this point I think I am done thinking about this for the day. If I come back to this I will definitely reply to your latest comment to ask for advice. (Wish HN had private messaging).

Re: Ask HN: How have you dealt with corruption?

#50
An effective way to deal with corruption is to make it clear that you don't participate in it.

It only takes for you to fail once and then everybody will know that you are ready to de "business" with them.

Whereas if you make a name for yourself as a clean contractor, you will also attract other kind of customers. Even inside government itself, but from other branches. Government is such a big beast, that there is plenty of honest people inside of it too.

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