Kickback

A Kickback is an illegal or unethical form of bribery in which a person who is in a position of power or trust receives a payment or other benefit from a third party in exchange for using their influence or position to benefit that third party. This often involves inflated prices, preferential treatment, or awarding contracts without fair competition. Kickbacks are generally concealed and involve a breach of fiduciary duty. They are usually found in business, government and other areas where decisions can be made that benefit others.

Kickback meaning with examples

• The construction company's CEO was accused of taking kickbacks from a supplier. The investigation revealed inflated invoices and substandard materials used in the project. Despite the obvious misconduct, there was a lack of accountability, due to a lack of evidence. The company was eventually fined and the CEO charged with corruption.
• A city official was discovered receiving kickbacks from a land developer. In return, the official expedited zoning approvals and granted favorable development terms. The scheme enriched both parties at the expense of the public interest. The ensuing legal battles exposed widespread corruption within the city government.
• The sales manager was fired after being caught accepting kickbacks from a vendor. The kickbacks influenced the manager’s decisions on the procurement of office supplies. He received a percentage of each purchase made, and his team suffered, while the company suffered financially.
• Federal agents investigated a pharmaceutical company that allegedly offered kickbacks to doctors. This was in exchange for prescribing their medications. This practice violated patient care standards. This resulted in a lawsuit and penalties for the company.