Under the Counter

Under-the-counter refers to illegal payments made for scarce merchandise or services, usually in excess of the stated price. These payments are a form of bribery and extortion.
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Definition

Under the counter refers to unauthorized, often illegal, transactions where payments are made secretly or unofficially for goods or services. These payments typically exceed the stated price and can involve bribes, extortion, or other forms of corruption.

Examples

  1. Medical Services: In some countries, patients may pay doctors or hospital staff under the counter to receive better or quicker medical treatment.
  2. Permits and Licenses: Individuals or businesses might pay government officials under the counter to expedite the approval of permits and licenses.
  3. Goods during Shortages: During periods when certain goods are scarce, suppliers might accept under-the-counter payments to provide these goods to specific customers.

Frequently Asked Questions (FAQs)

What constitutes an under-the-counter payment?

An under-the-counter payment is any financial exchange made unofficially and secretly, usually to circumvent official channels and obtain a scarce or highly demanded good or service.

No, under-the-counter paying is illegal as it usually involves bribery, extortion, and other corrupt behaviors.

What are the consequences of making under-the-counter payments?

Consequences can include criminal charges, fines, damage to reputation, and possible imprisonment for both the payer and the receiver.

How can under-the-counter transactions be prevented?

Stricter regulations, transparent processes, and vigilant enforcement by authorities can help in preventing under-the-counter transactions. Encouraging ethical behavior in both the public and private sectors is also crucial.

  1. Bribery: The act of giving or receiving something of value in exchange for some kind of influence or action in return, which is unethical or illegal.

  2. Extortion: The practice of obtaining something, especially money, through force or threats.

  3. Corruption: Dishonest or fraudulent conduct by those in power, typically involving bribery.

  4. Black Market: An illegal traffic or trade in officially controlled or scarce commodities.

  5. Kickback: A percentage of income given to a person in a position of power or influence as payment for having made the income possible.

Online References

Suggested Books for Further Studies

  • Rose-Ackerman, Susan. Corruption and Government: Causes, Consequences, and Reform. Cambridge University Press, 1999.
  • Heidenheimer, Arnold J., and Michael Johnston. Political Corruption: Concepts and Contexts. Transaction Publishers, 2002.
  • Klitgaard, Robert. Controlling Corruption. University of California Press, 1988.

Fundamentals of “Under the Counter”: Business Ethics Basics Quiz

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