Example of Kickback

What are Kickbacks?

An unlawful payment used to cover preferential treatment or any other kind of inappropriate service obtained is known as a kickback. Money, gifts, credits, or anything else of value can be used as kickbacks. Kickbacks are a corrupt practice that makes it difficult for employees or public officials to make impartial judgments. A common term used to describe kickbacks is ‘bribery’....

Implications of Kickbacks

1. Variety of Forms: Kickbacks come in a variety of shapes and sizes, but they always involve some kind of collaboration between two parties. For instance, even when they are aware that the invoice for products is inflated, the accountant for a company or government agency may nevertheless authorize it. The bookkeeper may then receive a portion of the difference from the goods seller (or some other type of payment)....

Example of Kickback

A construction company, XYZ Inc., is bidding on a government contract to build a new hospital. A government official Mr. Smith is the responsible person for reviewing bids, and he has the authority to choose the winning contractor. Company XYZ Inc. offers official Smith a hefty bribe (kickback) in exchange for awarding them the contract for the hospital, regardless of whether their bid is the most competitive. This kickback could be a cash payment, a luxury vacation, or even a promise of a future job after they leave office. If official Mr. Smith accepts the kickback and awards the contract to Company XYZ Inc., even if their bid is inferior, it’s a clear example of a kickback scheme....

Different Forms of Kickbacks

Some common forms of kickbacks are:...

Conclusion

Kickbacks are a type of bribery that damage trust, sabotage honest competition, and negatively affect many facets of society. Kickbacks are unethical payments or perks given in return for special treatment; they usually have the effect of swaying judgments that ought to be made on the basis of objective standards or merit. Kickbacks are prohibited and can have serious repercussions for the person offering and receiving the bribe....

Kickbacks- FAQs

What are the negative effects of kickbacks?...