Foreign Corrupt Practices
RUNNING HEAD: FOREIGN CORRUPT PRACTICES ACT
Foreign Corrupt Practices Act
Foreign Corrupt Practices Act In the 1970’s, hundreds of businesses were found to be making unethical practices in foreign countries. The Security and Exchange Commission (SEC) investigated and the findings compelled the US Congress to create the Foreign Corrupt Practices Act to require businesses to account for their business practices by providing records that portray an accurate documentation of the business accounting procedures. The Foreign Corrupt Practices Act (FCPA) was implemented to halt the bribery of foreign officials in the position to grant favors to American businesses to either obtain the ability to conduct business in the foreign country or to keep their businesses in the foreign country. Because America’s reputation was becoming so tarnished with accusations of foreign bribery, the United States Congress implemented FCPA to restore good faith in the ethical business practices of American businesses (Export-Import Bank of the United States, 2010).
FCPA Prohibitions
The Foreign Corrupt Practices Act protects ethical business practices by forbidding the bribery of foreign officials in order to obtain a business presence in a foreign country or to retain business in a foreign country (United States Department of Justice, 2010). According to the “Foreign Corrupt Practices Act Antibribery Provisions” document by the United States Department of Justice to explain the FCPA in laymen’s terms, there are five components to meet in order to be in violation of FCPA. It outlines who, corrupt intent, payment, recipients, and business purpose test. Therefore, this Act applies to any representative of an American business or a third party associated with the corruptible actions. This includes parent corporations, firms and stockholders action on behalf of the business. Additionally, the individuals or groups involved must be found to have corruptible intent,
Foreign Corrupt Practices Act
Foreign Corrupt Practices Act In the 1970’s, hundreds of businesses were found to be making unethical practices in foreign countries. The Security and Exchange Commission (SEC) investigated and the findings compelled the US Congress to create the Foreign Corrupt Practices Act to require businesses to account for their business practices by providing records that portray an accurate documentation of the business accounting procedures. The Foreign Corrupt Practices Act (FCPA) was implemented to halt the bribery of foreign officials in the position to grant favors to American businesses to either obtain the ability to conduct business in the foreign country or to keep their businesses in the foreign country. Because America’s reputation was becoming so tarnished with accusations of foreign bribery, the United States Congress implemented FCPA to restore good faith in the ethical business practices of American businesses (Export-Import Bank of the United States, 2010).
FCPA Prohibitions
The Foreign Corrupt Practices Act protects ethical business practices by forbidding the bribery of foreign officials in order to obtain a business presence in a foreign country or to retain business in a foreign country (United States Department of Justice, 2010). According to the “Foreign Corrupt Practices Act Antibribery Provisions” document by the United States Department of Justice to explain the FCPA in laymen’s terms, there are five components to meet in order to be in violation of FCPA. It outlines who, corrupt intent, payment, recipients, and business purpose test. Therefore, this Act applies to any representative of an American business or a third party associated with the corruptible actions. This includes parent corporations, firms and stockholders action on behalf of the business. Additionally, the individuals or groups involved must be found to have corruptible intent,
Cited: Export-Import Bank of the United States. (2010, July 23). Foreign Corrupt Practices Act (FCPA) and Other Anti-bribery Measures FCPA Enforcement. (2010). The FCPA Explained. Retrieved December 2010, from FCPA Enforcement: http://www.fcpaenforcement.com/explained/explained.asp Jack G. Kaikati, G. M. (2000). The Price of International Business Morality: Twenty Years Under The Foreign Corrupt Practices Act Richard M. Tollan, D. S. (2010). Is Your Business Affected by the US FCPA? Are You Sure? Retrieved December 2010, from Mayer-Brown: Teresa K. Beed, M. J. (2010). BRIBERY AND THE U.S. FOREIGN CORRUPT PRACTICES ACT: DO THEY HINDER GLOBAL COMPETITION?