TOP IC

SOCIAL
11 RESPONSIBILITY
TOWARDS
CONTRACTOR,
SUPPLIERS
AND
GOVERNMENT
 Bribe
It may be any money, good right in
action, property, preferent, privilege,
emolument, object of value, advantage
or merely promise or undertaking
to induce or influence the action,
vote or influence of a person
in an official / public capacity.
Stoping Bribery & Extortion

A form of corruption, is an act implying

money or gift given that alters the
behavior of the recipient.

Black's Law Dictionary defined as the

offering, giving, or soliciting of any item
of value to influence the action of an
official or other person in charge of a
public or legal duty.
Why Bribery is Immoral?

It corrupts the economic system;

It treats people as commodities;
It disturbs the commitment;
It violates the commitment of an
employee to its organization;
It prevents other sellers from receiving
equal entry into the market.
Extortion, Outwrestling, & Exaction

Is a criminal case which occurs when a

person unlawfully obtain either money,
property or services from a person
through coercion.
 CODE OF CONDUCT &
ETHICAL STANDARD for
PUBLIC OFFICIAL &
SECTI
ON
EMPLOYEES
Prohibited Acts &
7 Transactions
 Fighting Fraud &
White-Collar Crime
Fraud
is an internatinoal deception made for
personal gain or damage from another
individual.
 Types of Criminal Fraud
Bankruptcy fraud
Benefit fraud, committing fraud to get goverrnment

benefits
Counterfeiting of currency, documents or valuable things

Confidence tricks, such as the 419 fraud and Spanish

prisoner
Creation of false companies or long firms

False advertising

False insurance claims

Fraud upon the court

Moving scam

Religious fraud

Rigged gambling games such as the shell game

Types of White-Collar Crime
Blackmail
Demand under threat to bodily harm, to
accuse of a crime or to expose secret.
Bank Fraud
To engage in an act or pattern of activity
where the purpose is to defraud a bank of
funds.
Bribery
Anything of value is offered with intend to
influence action, opinions or decisions.
Types of White-Collar Crime
Cellular Phone Fraud
Unauthorized use, tampering or
manipulation of cellular phone or service.
Currency Schemes
The practice on speculating on the future
value of currencies.
Environmental Schemes
Overbilling and fraudulent practices
exercised by corporations which purpose
is to clean up the environment.
Types of White-Collar Crime
Computer Fraud
Where computer hackers steal information
sources contained on computers.
Counterfeiting
When someone copies or imitates an item
w/o having been authorized and passes
the copy off for the original item.
Extortion
When one illegally obtains property from
another by actual or threatened force, fear,
or violence or under cover of official right.
Types of White-Collar Crime
Forgery
When a person passes a false or worthless
instrument w/ the intent to defraud or injure
the recipient.
Health Care Fraud
Where unlicensed health care provider gives
services under the guise of being licensed
and get monetary benefit from it.
Inside Trading
When one uses inside confidential info to
trade in shares of publicly held corporations.
Types of White-Collar Crime
Insurance Fraud
To engage in act or pattern of activity
where one obtain proceeds from an
insurance company through deception.
Investment Scheme
Where unsuspecting victim is contacted by
the actor who promises to provide a large
return on a small ivestment.
Kickback
When a seller of an item pays back a
portion of the purchase price to the buyer.
Types of White-Collar Crime
Money Laundering
Investment or transfer of money from
racketeering, drug transaction or _
embezzlement schemes.
Racketeering
Operation of an illegal business for
personal profit.
Securities Fraud
Artificailly inflating the price of stocks by
brokers so that brokers can purchase a
stock on the rise.
Types of White-Collar Crime
Tax Evasion
When a person commits fraud _ feeling or
payiing taxes.
Telemarketing Fraud
Actors operate out of boiler rooms and
place telephone calls to residences and
corporations where the actor requests a
donation to an alleged charitable
organization.
Types of Whit-Collar Schemes
Advanced Fee Schemes
Actor induces victim to give him some type of
advanced fee in return for future benefits.
Airport Scam
Actor approaches victim in an aiport stating that
the newspaper stand cannot change his one
hundred dollar bill and ask the victim for
change.
Auto Repair
Actor hangs out to repair shop and approaches
victims who leave after getting estimates.
Types of Whit-Collar Schemes
Check Kiting
A bank account is opened w/ good funds and a
rapport is developed with the bank.
Coupon Redemption
Grocery stores a must large amount of
coupons and redeem than to manufacturers
when in fact merchandise was never sold.
Directory Advertising
Actors either impersonates sales person from a
directory company like the yellow pages or
fraudulently sells advertising w/c the victim
never receives.
Types of Whit-Collar Schemes
Fortune Telling
Actors advises victim that the victim is
cursed, then the victim pays fortune teller to
remove curse.
Gypsies
Actors state that the victim's money is
cursed in order to remove the curse.
Home Improvements
After the repair is completed, actors
estimate the victim to pay a price much
greater tha the original estimate.
Types of Whit-Collar Schemes
Inferior Equipment
Actors travel around selling enferior equipment
such as tols at high prices.
Land Fraud
Actors induces victim to purchase tracks of
land in some type of retirement development
w/c does not exist.
Odometer Fraud
Unscupulous used car salesman purchased
used cars & turn back the odometers, for w/c it
is sold at a higher price due to its low mileage.
Types of Whit-Collar Schemes
Police Impersonation
Actors tells victim that his bank is being
operated fraudulent bank officers.
Ponzi
Actors solicit investors in a business venture,
promising extremely high financial return and
dividends in a very short period of duct.
Quick Change
Victim is confused by actors speedy series of
money exchanges & in the end is short
changed.
Types of Whit-Collar Schemes
Utilities Impersonators
Actors wear jumpsuits with name tags. Actors
approaches victim with story about a gas leak
or electrical surge to gain entry to the home.
VCR Scam
Actors purports to sell new VCRs or televisions
at an extremely low cost due to his
connections. Victim pays only to discover that
the box has been filled with rocks.
West African Investment Scams
Actors target businesses & obtain bus. Bank
acct. info. from w/c all funds are later withrawn.
Conflict of interest

Occurs when an individual/organization

is involved in multiple interests, one of
w/c could possibly corrupt the
motivations for an act in the other.

It can only exist if a person or testimony

is entrusted w/ some impartiality; a
modicum of trust is necessary to create
it. The presence of COI is independent
from the execution of impropriety.
most common forms of c.o.i.
Self-dealing, an official who control an org
causes it to enter into a transaction.
Family interest, g/s are purchased from a
relative a firm controlled by a relative.
Gift from friend, who also do business with
the person receiving the gift.
Pump & dump, stock broker “upgrade“
security to put price up then “downgrade“
security to put price up down.
Outside employment, interests of one job
contradict another.
Corporate duty to
pay correct taxes
Taxation
Is a means by the government to
finance their expenditure by imposing
charges on citizens & corporate
entities.

Is an organized mandatory system of

raising money or revenue to finance
government, support existence & carry
out its legitimate objectives.
Corporate duty to
pay correct taxes
Principle of Distributive Justice
There should be a fair distribution of
society benefits and burden.
Distribution of Burden
In taxation, requires proportionate
equality is not a necessarily an equal
share of carrying the burden of taxes.
Two things to be justified:
 Imposing a tax burden

 Determining its distributive impact

Corporate duty to
pay correct taxes
Distributive Justice
Is the chief justification of a progressive
tax system, where poor members of
society pay little & the rich pay more.
Fare Share
Earner in the lower-income bracket should
not be taxed as much as those in the high-
income bracket.
Ability-to-pay Principle
People's taxes should be based upon their
ability to pay.
Corporate duty to
pay correct taxes
Horizontal Equity
People in equal position should pay the
same amount of tax.
Vertical Equity
A tax system should distribute burdens
fairly across people with different
abilities to pay.
Proportional Tax
Takes the same percentage of income
from all people.
Corporate duty to
pay correct taxes
Progressive Tax
Takes a higher percentage of income
as income raises. Rich people not only
pay a large amount of money but larger
fraction of their income.
Regressive Tax
Takes a smaller percentage of income
as income raises. Poor people pay a
larger fraction of the incomes in taxes
than rich people.
Corporate duty to
pay correct taxes
Types of taxes
Individuals pay taxes when they earn
money – income tax.
Consumption taxes when they spend it –
VAT.
Property taxes when they own a home or
land.
Transfer of ownership into vivos or mortis
causa.
State taxes when they die.
Local gov't. collect taxes – community tax.
Corporate duty to
pay correct taxes
Corporate Income Tax
The law treats corporations as if they
have independent ability to pay tax.
Libertarian Philosophy
“The art of taxation is the art of plucking
goose.“ - Jean-Baptiste Colbert
Libertarianism
Defending and preserving the personal
and economic liberty or freedom of
individuals.
Corporate duty to
pay correct taxes
Tax Evasion
Intentional negligence to pay correct taxes.
Three Elements of Tax Evasion
 Intention to cheat

 Knowledge that tax evasion is wrong

 By fraudulent means

Tax Avoidance
When taxpayers exploit legally permissible
alternative methods of assessing taxable
property or income in order to avoid or
reduce tax liability.
Corporate duty to
pay correct taxes
When does manipulation happen vis-a-
vis corporate taxation?
Attractive incentive package – controllers of
some companies are tempted to
manipulate & engage in creative
accounting in order to satisfy the
shareholders' need and oftentimes earns
financial rewards for themselves along the
way either by engaging in acts
commensurate to tax evasion and tax
avoidance.
Corporate duty to
pay correct taxes
The duty to pay taxes
“The duty to pay taxes is derived from the
citizens obligation to contribute their share
to the necessities of the state, who help
they need, by which profit, and w/c also
assumes certain obligations in the citizen's
place and stead.“ - Fr. K.H. Peschke, SVD