Ethics: Foreign Corrupt Practices Act
The main thrust of the readings
The readings focus on the U.S. statutes prohibiting U.S. companies, citizens, and employees from issuing any valuable thing to foreign government executives for securing business benefits. The underlying thrust of the readings is twofold: first, that corruption must be deterred and second that government officials must promote economic relationships between their companies and foreign firms through the promotion of ethical foreign investment.
The rigid enactment of the FCPA has placed these two thrusts in a state of tension. Law enforcers and courts could interpret the readings broadly. For instance, any valuable thing includes not just payments in cash but also meals, gifts, entertainment and drinks. This element is not associated with any de minimis value and makes companies uncertain when they are expected to comply with the FCPA. From the readings, the FCPA has been enforced and institutes criminal fines of about forty-two million on each count of violation. This applies to firms operating against the law. Recent cases have attracted fines exceeding $2 billion (Pastin & Hooker, 1980). It is evident from the readings that courts have sentenced business owners or at least fifteen prison years for committing major violations.
The readings reveal that the severity of civil and criminal penalties ordered under current FCPA cases have been attracted widespread popularity. They have similarly spurred rigid adherence to practice extreme caution when dealing with overseas governments and corporations. The readings...
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