Foreign Corrupt Practices Act Is Outdated Essay

Foreign Corrupt Practices Act Is Outdated Essay

Length: 866 words (2.5 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The pro argument for saying the Foreign Corrupt Practices Act is obsolete is highlighted in the article Prosecute Wal-Mart, but get rid of anti-bribery law by Jeffrey Miron. In this article Jeffrey Miron argues that Foreign Corrupt Practices Act was designed with good intentions but has failed to stop corruption. Foreign Corrupt Practices Act has had a minimal impact on bribes but has allowed the least honest companies to profit. In many countries around the world bribes are a common practice in doing business. Foreign Companies are able to circumvent the law and pay off officials with minimal risk of exposure. This puts pressure on ethical American companies restricted by the FCPA to lower their standards or risk losing business. This discourages American companies from doing business overseas because of threat of prosecution under the FCPA.
The cons to the argument for saying the Foreign Corrupt Practices Act is obsolete is discussed in the article With Wal-Mart Claims, Greater Attention on a Law by Charlie Savage. In this article Charlie Savage argues that the FCPA has always been a useful tool in stopping corruption but in recent years with companies becoming more globalized other countries gradually adopted similar laws, the United States has started to enforce it more strictly. The dollar amount of fines imposed by the Justice Department and the Securities and Exchange Commission has increased even more, including a record-setting $800 million paid by Siemens in 2008. Enforcement under the act has soared, from just two enforcement actions in 2004 to 48 in 2010. There are currently at least 100 open investigations, specialists estimate.
Wal-Mart is seen as a global company, but it wasn’t until 1991 that Wal-Mart opens its fir...

... middle of paper ...

...ff. By the end of 2014 Wal-Mart will have appointed 10 market-level Chief compliance officer in its International division to build and lead the compliance teams in the company’s retail markets around the world. This effort is critical for promoting the long-term sustainability and capability of the company’s anti-corruption compliance team.
Anti-corruption remains a key focus for compliance training in all markets. Walmart’s anti-corruption training is designed to develop awareness and understanding of the relevant code of ethics for associates and agents who interact directly or indirectly with government officials on the company’s behalf. In recent years, Wal-Mart has trained more than 100,000 attendees from all levels of the company from around the world, including key senior executives and officers who interact directly or indirectly with government officials.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Non Corrupt Practices Act ( Fcpa )

- When is a Bribe a bribe, discusses how HR can be given the task to set polices for compliance ethical business overseas. HR personal must form polices that adhere to the Foreign Corrupt Practices Act. They can use guidelines written by the Department of Justice and the Securities and Exchange Commission to understand what are considered “gifts”. HR professionals involved in foreign affairs, need to increase their traditional activities, such as training and performance monitoring, such as auditing....   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
1320 words (3.8 pages)

United States Government Enacted The Foreign Corrupt Practices Act Essay

- In 1977 the United States government enacted the Foreign Corrupt Practices Act (“FCPA”), this act was created to make it “unlawful for certain classes of persons and entities to make payments to foreign government official to assist in obtaining or retaining business” (“Foreign Corrupt,” n.d.). Since the law has been passed, many businesses and individuals have come under fire from the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) for violating the FCPA. Traditionally industries involved with oil and oil services and medical devices are considered “high risk” for FCPA purposes, in 2013 it was out of the ordinary that an industry, such as an automated teller...   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
914 words (2.6 pages)

Technology Company 's Violation Of The Foreign Corrupt Practices Act Essay

- On February 16, 2016, the United States Securities and Exchange Commission released a statement to announce the settlement of a case concerning a technology company’s violation of the Foreign Corrupt Practices Act (FCPA). The software company PTC Inc. came under SEC investigation when it was discovered that two of its Chinese subsidiaries provided Chinese government officials with non-business related trips to places like Hawaii and Las Vegas, as well as improper gifts, including iPods, gift cards, and wine in order to win business....   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
1081 words (3.1 pages)

The Foreign Corrupt Practices Act Essay

- The Foreign Corrupt Practices Act specifically bans unethical expenditures when using non-employees or arbitrators. Explicitly, it will look over the facts of if no matter who, that then they know to which some or all anything of value or monetary gains that could or would be given, guaranteed, or presented indirectly or openly, to someone other than a home country dignitary or office holder (Justice, 2012). Several corporations undertaking commerce in a country other than their own, maintain a resident alien or firm to help them with day to day operations (Justice, 2012)....   [tags: Political corruption, Bribery]

Better Essays
777 words (2.2 pages)

Essay about The Foreign Corrupt Practices Act

- The Foreign Corrupt Practices Act, or FCPA, is an act that was put into place in 1977 to control the dealings US persons or entities would have with foreign officials. The act make it unlawful for any US party to pay, whether it is directly or indirectly, with money or anything else of value, to a foreign official in exchange for obtaining or retaining a business (FCPA Enforcement). In addition to this, any company that trades securities in the US is required to file periodic report to the Securities and Exchange Commission to have record of any business transactions in order to maintain effective internal controls (Department of Justice)....   [tags: World Commerce]

Better Essays
1440 words (4.1 pages)

The Core Issue Of Wal Mart De Mexico Essay

- 1. Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at the heart of the case. The core issue in this case is about how Wal-Mart de Mexico covered a vast bribery orchestrated by government officials, authorities, and executives from Mexico. Wal-mart de Mexico perfected the art of bribery by using fraudulent accounting and building stores so fast by getting zoning maps changed and making environmental objections disappear. Wal-mart de Mexico’s executives bribed government officials to aid in getting permits faster, since this is a process that typically takes months to complete....   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
1928 words (5.5 pages)

Essay on The Anti Bribery Section Of The Fcpa

- Before 1977 the business world was filled with corruption and bribery. That was until the United States Congress made the Foreign Corrupt Policy Act or better known as the FCPA. This act tries to puts an end to any sort of corruption due to bribery of a foreign official by Americans businesses, citizens, or business partners. Meaning any American working overseas is under the regulations of this act. As well as anyone working on behalf of an American based company. It even means any international busines that is currently working in the United States has to be mindful of its actions because it also is covered by the FCPA.....   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
1910 words (5.5 pages)

Challenges Of Doing Business Abroad Essay

- Challenges of doing Business Abroad As an owner of a business your main goal is to expand your business, nationally and internationally. Expanding your business internationally opens many doors to have a successful business. There are vast numbers of companies in the United States who manage business with companies all over the world. Nevertheless, companies from foreign countries may not always have the same ethics as businesses from the United States, which can be an immense deal, for example “An executive of a company offers a government official payment in exchange for the official incorrectly classifying imported goods so the shipment will be taxed at a lower rate than the...   [tags: Foreign Corrupt Practices Act, Bribery]

Better Essays
754 words (2.2 pages)

Unjust and Corrupt Practices in South African Government Essay examples

- Unjust and Corrupt practices in South African Government Africa is a continent rich human and natural resources, yet a majority of its people is impoverished (Carr). South Africa, later called the Republic of South Africa, is a country where the people repeatedly experienced injustice and corruption from their government, the apartheid and the African National Congress. The South African people suffered from injustice and corruption in both white and black governments. The apartheid system consists of all-white government officials, while the African National Congress consists of people of color....   [tags: lack of foreign investment, creation of the ANC]

Better Essays
1008 words (2.9 pages)

Essay on Former Corrupt Practices Investigation Bureau

- In the last couple of years, there have been a few high-profile corruption investigations and prosecutions in Singapore. Former Corrupt Practices Investigation Bureau (CPIB) Assistant Director Edwin Yeo Seow Hiong misappropriated funds issued to the branch he headed within the bureau to fuel his gambling habit. For 15 years, Edwin served the bureau, eventually becoming the Head of Field Research and Technical Support. He made 372 trips to the casinos over two-and-a-half years, losing at least S$478,583 at Resorts World Sentosa and Marina Bay Sands between April 2010 and September 2012....   [tags: Political corruption, Corruption, Singapore]

Better Essays
1088 words (3.1 pages)