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Corruption in a Concrete Jungle

Ethisphere

In this article, Matteson Ellis discusses common bribery risks in São Paulo, Brazil. Following the city's July 2013 protests -- initially formed as a response to increased bus fares -- citizens have expressed overwhelming frustration with levels of corruption in the city. A number of factors play into the city's corruption risks, including its size as the largest city in South America as well as its ranking as the 10th richest city in the world. As Ellis notes, "Such economic heft means great opportunity for the business community. It also means pronounced forms of corruption risk." He provides a list of some of the most common forms of corruption that international businesspeople encounter when operating in São Paulo, including public procurement and fierce competition for public contracts; regulatory hurdles and significant ambiguity regarding regulations; commercial bribery's status as a non-criminal offense; and the difficulties surrounding tax payments and proper reporting requirements.