Dilemma 9:  Sales manager - Answer

It is normally legal to pay staff on performance related bonuses. The theory is that they incentivise a person to work harder (although this theory is extremely questionable, as good people will normally work hard for a fair salary, team spirit and pride).  However, bonuses can be corrupting influences.  A sales manager whose remuneration depends partly on the value of sales made could be under personal financial temptation to use bribery to secure those sales, or to turn a blind eye to a potentially corrupt situation (e.g. a bribe paid through an agent).  Such bribery could implicate not only the sales manager but also you and your company because it could be said that, knowing of the corruption risks of bonuses, you turned a blind eye to those risks.  Extreme caution should be exercised if performance bonuses are used.  They should not be so high as to be a corruption incentive, and they should have balancing factors (e.g. a sales manager should also be rewarded for identifying and avoiding a corrupt situation, and the long term success and profitability of the contract should be just as important to the bonus calculation as the value of the sale).