Essay on Foreign Corrupt Practices Act

Words: 1233
Pages: 5
Open Document
FCPA PAPER
The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the 1970s and the proliferation of white-collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress's objective was to restore confidence …show more content…
These payments are distinguishable from corrupt payments in that these "grease payments" are for facilitating the performance of officials who are obligated to perform said duties. Questions regarding this amendment, affirmative defenses, or other provisions of the FCPA should be directed to counsel, or companies may wish to use the Department of Justice's Foreign Corrupt Practices Act Opinion Procedure. Under this procedure, upon receiving a question from a company or individual, the attorney general has thirty days to issue an opinion regarding the inquiry. The objective is to alleviate uncertainty regarding acts covered by the FCPA.
The FCPA provides penalties for violations. Criminal penalties for bribery violations include fines of up to $2 million for firms; fines of up to $100,000 and imprisonment of up to five years for officers, directors, and stockholders; and fines of up to $100,000 for employees and agents (fines imposed on individuals cannot to be paid by companies). The SEC or attorney general may also bring actions that lead to civil penalties. Also, the act's penalties do not supersede penalties or fines levied under the provisions of other statutes. A violation of the bribery provisions of the FCPA may give rise to a private cause of action for treble damages under RICO (Racketeer Influenced and Corrupt Organizations Act).
Clearly, large
Show More

Related Documents: Essay on Foreign Corrupt Practices Act

Foreign Corrupt Practices Act

The start of the Foreign Corrupt Practices act began in 1970 when the U.S Securities and Exchange Commission launched an investigation over 400 U.S. companies. These companies admitted to making illegal payments to foreign officials, politicians, and political parties. These companies were guilty of facilitating payments in the result of trying to have a favorable action done to benefit their company by these foreign officials. When the act was signed into law by President Jimmy Carter on December…

Words 885 - Pages 4

Foreign Corrupt Practices Act Of 1977

S. Congress has passed two laws including the Foreign Corrupt Practices Act “FCPA” of 1977 and Sarbanes-Oxley Act of 2002 laws to fight the white-collar crimes. Further, the Foreign Corrupt Practices Act (FCPA) of 1977 focuses on bribing and corruption. This Act came out as a result of the fact that the executives of Lockheed have corrupted the Japanese companies to get their business. Further, the U. S. Congress quickly passed the Sarbanes-Oxley Act “SOX” in 2002 to fiercely react to the enormous…

Words 369 - Pages 2

Essay on Foreign Corrupt Practices Act and Business Ethics

the world, I can very well recall times when my products were copied by the Taiwanese, rejected by the Japanese, nationalized by the Iranians and more than a few times displaced by more expensive, less quality goods made in European countries where foreign bribes, if not morally acceptable, were at least tax deductible. With this background in international trade plus several years of living abroad, I very much welcome this opportunity to discuss global ethics and the possible development of global…

Words 1372 - Pages 6

Essay about Assignment: Foreign Corrupt Practices Act

U.S. Foreign Corrupt Practices Act (FCPA) Prohibits corruptly offering, promising or paying anything of value to a foreign government official to obtain or retain business “Foreign government official” includes employees of state-owned customers Requires that Company’s books and records accurately and completely reflect transactions and dispositions of assets, regardless of dollar value Applies to the Company and all of its employees globally No “Ostrich” Defense – cannot turn a blind…

Words 409 - Pages 2

Latino: Foreign Corrupt Practices Act and relatively Small Sum Essay

the US, bribery is considered unethical. The Foreign Corrupt Practices Act (FCPA) prohibits U.S. businesses from paying bribes openly or using intermediaries as conduits for a bribe when the U.S. manager knows that part of the intermediary’s payment will be used as a bribe. The Omnibus Trade and Competitiveness Act of 1988 focusing on assisting businesses to be more competitive in world markets as well as on correcting perceived injustice in trade practices. Although it permits lubrication payment if…

Words 595 - Pages 3

Essay on The Role of Environment in Walmart's Marketing Decisions

internet is an example of how organizations can transport, generate, or initiate international sales in many countries which in turn opens many doors to great opportunities in marketing in addition to corporate social responsibility which is another practice used to improve situations in the workplace and in benefit society. Conducting domestic and global marketing business is all too familiar for Wal-Mart with over thousands of stores and super centers here in the United States. In addition to these…

Words 1077 - Pages 5

Bibery In Indi A Good Thing?

common practice to issue low level bribes so as to get business license. This is used to avoid obstacles in carrying out business activities. An interview conducted by Kestenbaum revealed that bribery can be a good thing if given out for a good cause. Economist reasons that bribery boosts economic activities through speeding up process such as judicial, business and property management. It is important to note that the culture is common practice therefore the community supports the practice. Mr. Singh…

Words 725 - Pages 3

Assignment 3 Assignment 1

January 7, 2014 TABLE OF CONTENTS I. INTRODUCTION ………………………………………………………....…..……………....1 II. SECURITIES ACT OF 1933 AND 1934………………………….…....……….…………....1 II.1 SECURITIES AND EXCHANGE COMMISSION V. SUBAYE, INC ...……….....3 III. THE FOREIGN CORRUPT PRACTICES ACT OF 1977.………...…………...…………....4 III.1 THE BANANAGATE SCANDAL...………….……………………..…..………….5 IV. THE SARBANES OXLEY ACT.………...…………...………………..…………….……....6 IV.1 THE ENRON CORP. SCANDAL...………….……………………..…..………......7 V. CONCLUSION…

Words 2373 - Pages 10

Case Study: Alcoa World Alumina LLC

Slide 1 • Alcoa agreed to plead guilty with the United States Department of Justice at the court of Western District of Pennsylvania • Alcoa was guilty for violating the anti-bribery provisions of the Foreign Corrupt Practices Act with a 2004 corrupt transaction. Slide 2 • Alcoa World Alumina LLC a majority-owned of the company paid a criminal fine of $209 million and a penalty of $14 million to settle the Department of Justice charges. Slide 3 • The Alcoa Inc., the corporate parent resolved the…

Words 172 - Pages 1

Environmental Factors In Marketing

interdependence and the effects of trade practices and agreements in the marketing. Also we will relate the significance of demographics and physical infrastructure variable while we examine the importance of social responsibility and ethics versus legal obligations firms consider prior to decisions. In this paper we will also analyze the effects of political systems and international relations starting with the case study summary of the Foreign Corrupt Practices Act of 1977, and the influence of local…

Words 1287 - Pages 6