The bribery scandal that erupted with the firing of Swedish furniture giant Ikea`s top two managers in Russia has shone a spotlight on how foreign companies struggle to deal with the all-pervasive problem of corruption.
Per Kaufmann, Ikea`s general director for Russia and Eastern Europe, and Stefan Gross, director for Ikea`s shopping mall business in Russia, allowed bribes to be paid via a contractor to solve an electricity supply problem at its store in St. Petersburg, the company said in a statement after a Swedish tabloid newspaper broke the story, claiming it had e-mails detailing the bribes.
For Ikea, which has publicly stated time and time again that it has a zero-tolerance policy towards corruption, the news has come as a body blow to its clean-cut reputation.
How to reconcile tough anti-bribery corporate policies back home with the corrupt rules of the game in Russia is a nigh-impossible task, said anti-corruption experts.
"For foreign companies, the corruption risks in Russia can outweigh potential profits," said Kirill Kabanov, a former Federal Security Service official who heads the National Anti-Corruption Committee. "But they are also worried that zero tolerance to corruption will get them into a situation of unfair competition with those who agree to give bribes."
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