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Doing Business in Brazil after Operation Car Wash (A)

Published 25 Jun 2018
Reference 6404
Topic Strategy
Region South America
Length 30 page(s)
Summary

The case describes Operation “Lava Jato” (Car Wash) in Brazil, one of largest anti-corruption investigations in the world. Operation Car Wash brought to light the shady relationships between government contractors, political campaign agencies and high-profile politicians in what were known as ‘pay-for-play’ schemes – bribes and campaign contributions paid by major corporations to government officials and political parties in exchange for lucrative government contracts which were over-invoiced to ‘cover the costs’. By March 2018, 123 defendants had been convicted (their cumulative prison sentences amounting to 1,861 years), many from the highest echelons of government and business.

Teaching objectives

The aim is to discuss how doing business in Brazil is being transformed by one of the largest corruption probes in history. More broadly, the case allows instructors to examine institutional changes in emerging markets and their implications for business.

Keywords
  • corruption
  • emerging markets
  • Car Wash
  • Lava-Jato
  • Brazil
  • Sergio Moro
  • Institutional change
  • Latin America
  • Q41718
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