Question

Discussion topic 2: Foreign Corrupt Practices Act of 1977

Research this Act in the Library, which can be accessed in through the home area of the course room.

What is the purpose of this act? In some cultures, bribery to government officials and others to obtain services and contacts is tolerated.

Do you think this is ethical, since those receiving the bribes are not really doing anything wrong? Why or why not?

Answer 1

Foreign Corrupt Practices Act of 1977

Overview - The Foreign Corrupt Practices Act of 1977 ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.  With the enactment of certain amendments in 1998, the anti-bribery provisions of the FCPA now also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

Purpose/Motto / Aim - The aim of the Foreign Corrupt Practices Act (FCPA) is to prohibit companies and their individual officers from influencing foreign officials with any personal payments or rewards. The FCPA applies to any person who has a certain degree of connection to the United States and engages in corrupt practices abroad, as well as to U.S. businesses, foreign corporations trading securities in the U.S, American nationals, citizens, and residents acting in furtherance of a foreign corrupt practice, whether or not they are physically present in the U.S.Any individuals involved in these activities may face prison time.

The FCPA has two provisions- Anti-Bribery and Accounting..The Accounting Provisions basically make it illegal for a company that reports to the SEC to have false or inaccurate books or records or to fail to maintain a system of internal accounting controls.

In some cultures, bribery to government officials and others to obtain services and contacts is tolerated - Corruption in international business is common and frequently ignored.Some US business people believe and frequently say "Everyone knows you can't do business in (Mexico, China, India, Russia - pick a country) without paying bribes. It is part of their culture. . Even if that were true, the FCPA is part of the legal environment for international business. Compliance is not optional

Investigation, prosecution and punishment under the FCPA is common.In 2010 alone, 52 individual business people were indicted, sentenced, or were convicted and awaiting sentencing for FCPA violations. Ten years ago FCPA prosecutions were rare. Since 2008, the government has had around 150 FCPA investigations going on at any one time and has been bringing about 40 cases each year.

Bribery can sometimes form a part of the systemic use of corruption for other ends, for example to perpetrate further corruption. Bribery can make officials more susceptible to blackmail or to extortion.Bribery is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.

There are always two sides of bribery

• Bribe-giver
• Bribe-taker

There are several reasons for bribery though unacceptable.

Do you think this is ethical, since those receiving the bribes are not really doing anything wrong? Why or why not?

bribery is not acceptable though it is common practice widely found in almost every country one peeps in.but,it is not recommended to offer or accept bribes. Bribes are not ethical,which contradicts with moral principles that govern a person's behavior or the conducting of an activity.Character building is more important than career building.

Bribery is crime. It is a punishable crime.Bribery is unethical for various reasons listed below -

• Bribery is usually done,willing to pay bribes in order to keep or win business,willing to misstate financial performance,which represents a huge risk to their business.
• It attracts unwanted government interventions and media attention bragging to rock bottom of matters
• They are also promoting this in ineffable ways,leading it and as a symbol of fostering act.

Some notable instances have not only occurred but also recorded,they are quoted below

1. Spiro Agnew, American Vice President who resigned from office in the aftermath of discovery that he took bribes while serving as Governor of Maryland.
2. Ralph Lauren, clothing retailer, was found guilty of making illegal payments and giving gifts to foreign officials in an attempt to circumvent custom' inspections and paperwork.

So,Bribery is unacceptable,unofficial,UNETHICAL,illegal.It is always better to avoid and take strict actions in regards bribery.

Source - party from wiki.