U.S. probes Uber for possible bribery law violations
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Re: U.S. probes Uber for possible bribery law violations
#2So, potentially stupid question but here goes...with a new CEO coming in, what impact will this have on the company in the short-term? Did they foresee this probe coming or is this something that they will have to scramble to react to?
I mean it sounds like they may have expected this investigation with the handling of obtaining medical records, but wow.
Re: U.S. probes Uber for possible bribery law violations
#3So, potentially stupid question but here goes...with a new CEO coming in, what impact will this have on the company in the short-term? Did they foresee this probe coming or is this something that they will have to scramble to react to? I mean it sounds like they may have expected this investigation with the handling of obtaining medical records, but wow.
> Did they foresee this probe coming or is this something that they will have to scramble to react to?
It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of the illegal behavior, they may save for a fund that would pay for costs of being caught.
The math isn't just about money in vs money out, either. The best consider the effect on the brand, cost of a PR campaign, potential legal changes, lobbying fees(to make currently illegal behavior legal), the likelihood of getting caught in the first place, and a lot of other stuff that I'm probably not thinking about.
It's not right, but when shareholders demand exponential growth, the owners and managers will do what is necessary to make that happen.
Re: U.S. probes Uber for possible bribery law violations
#4So, potentially stupid question but here goes...with a new CEO coming in, what impact will this have on the company in the short-term? Did they foresee this probe coming or is this something that they will have to scramble to react to? I mean it sounds like they may have expected this investigation with the handling of obtaining medical records, but wow.
> Did they foresee this probe coming or is this something that they will have to scramble to react to? It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of th…
Come on -- the case in question is in India. Bribes are a way of life there. You literally cannot do business there without paying bribes. Nobody had to tell anyone to pay the bribe; if they're anything like every other company I've worked with over there, they have an official slush fund for this stuff. You just do it.
Now, it's pretty abhorrent that they doxed a rape victim; and that behavior is reason enough to investigate IMO. But the bribery part? Literally everyone does it because you have to if you want anything to get done there as a foreigner / foreign company.
Re: U.S. probes Uber for possible bribery law violations
#5Earlier quoted context omitted.
> Did they foresee this probe coming or is this something that they will have to scramble to react to? It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of th…
Come on -- the case in question is in India. Bribes are a way of life there. You literally cannot do business there without paying bribes. Nobody had to tell anyone to pay the bribe; if they're anything like every other company I've worked with over there, they have an official slush fund for this stuff. You just do it. Now, it's pretty abhorrent that they doxed a rape victim; and that behavior is reason enough to in…
That's correct - and it definitely affects the math involved. It would be way more expensive in many ways to be involved in bribery in a larger country like Canada, to the point that the illegal activity likely wouldn't be worth the potential cost. But in India, the cost of such illegal activity is very different, thus is more likely to be worth it.
Re: U.S. probes Uber for possible bribery law violations
#6Earlier quoted context omitted.
> Did they foresee this probe coming or is this something that they will have to scramble to react to? It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of th…
Come on -- the case in question is in India. Bribes are a way of life there. You literally cannot do business there without paying bribes. Nobody had to tell anyone to pay the bribe; if they're anything like every other company I've worked with over there, they have an official slush fund for this stuff. You just do it. Now, it's pretty abhorrent that they doxed a rape victim; and that behavior is reason enough to in…
I don't know about the US, but in Australia, our foreign bribery laws explicitly exempt "facilitation payments", i.e. bribes that are customarily paid to grease the wheels of bureaucracy and get routine government actions done.
However, that certainly wouldn't cover anything like this alleged rape doxxing, and it also wouldn't cover bribes intended to secure new business, which are presumably extremely common in countries like India.
Re: U.S. probes Uber for possible bribery law violations
#7Earlier quoted context omitted.
> Did they foresee this probe coming or is this something that they will have to scramble to react to? It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of th…
Come on -- the case in question is in India. Bribes are a way of life there. You literally cannot do business there without paying bribes. Nobody had to tell anyone to pay the bribe; if they're anything like every other company I've worked with over there, they have an official slush fund for this stuff. You just do it. Now, it's pretty abhorrent that they doxed a rape victim; and that behavior is reason enough to in…
Except in this case (if this is what happened??) they're paying a bribe to do something you shouldn't be able to do anyway. This isn't paying a bribe to conduct standard business, they're paying a bribe to access someone's medical records. I don't see how that is anymore acceptable if you're doing it in India than in any Western country.
Re: U.S. probes Uber for possible bribery law violations
#8So, potentially stupid question but here goes...with a new CEO coming in, what impact will this have on the company in the short-term? Did they foresee this probe coming or is this something that they will have to scramble to react to? I mean it sounds like they may have expected this investigation with the handling of obtaining medical records, but wow.
> Did they foresee this probe coming or is this something that they will have to scramble to react to? It depends entirely on whether or not this was a top-down decision. The most efficiently run companies consider the likely returns on illegal activity and the potential ramifications of getting caught. If the math works out in favor of the illegal behavior, they'll go ahead and do that. Depending on the nature of th…
The best run companies transform top-down decisions into bottom-up ones, helpfully protecting executives from consequences. How it works is through setting high expectations in a "get it done" culture, and then carefully cultivating strategic ignorance about illegal activity that's positive value.
Re: U.S. probes Uber for possible bribery law violations
#9Earlier quoted context omitted.
Come on -- the case in question is in India. Bribes are a way of life there. You literally cannot do business there without paying bribes. Nobody had to tell anyone to pay the bribe; if they're anything like every other company I've worked with over there, they have an official slush fund for this stuff. You just do it. Now, it's pretty abhorrent that they doxed a rape victim; and that behavior is reason enough to in…
I don't know about the US, but in Australia, our foreign bribery laws explicitly exempt "facilitation payments", i.e. bribes that are customarily paid to grease the wheels of bureaucracy and get routine government actions done. However, that certainly wouldn't cover anything like this alleged rape doxxing, and it also wouldn't cover bribes intended to secure new business, which are presumably extremely common in coun…
The FCPA similarly differentiates. However the practical problem is that running a defense based on whether a certain activity was a facilitation payment (to secure the performance of a "routine government action") means you essentially have to admit that the potentially unlawful activity actually took place, and you move onto generally very treacherous ground. For that reason most companies don't go that route.
In any case as others have noted it's not relevant here because getting someone's medical records isn't a service that you're entitled to.
Re: U.S. probes Uber for possible bribery law violations
#10Oh wow. FCPA violations. One of the key rules of American business is that you do not dance around with the FCPA [0]. (I suspect many new startup managers are not familiar with the FCPA but you can bet their investors are.) Violations of the FCPA do not just result in fines, they result in actual jail time for whomever did the bribing, whether they be individual low-level employees, contractors, or CEOs.
That said, the FCPA explicitly allows small "greasing" bribes that encourage low-level bureaucrats to expedite some action they would have taken anyway -- when such greasing payments are legal in the country in question. Obtaining the medical records of a rape victim certainly does not fall within this exception.
[0] https://en.wikipedia.org/wiki/Foreign_Corrupt_Practices_Act