Foreign Corrupt Practices Act

Foreign Corrupt Practices Act In todays incessantly changing and competitive modern world of business, it is lively for the companies to aim activities internationally. In order to prohibit frauds and illegal activities, several acts and documents fix been elaborated. One of the documents is Foreign Corrupt Practices Act that has been enacted in the 1970s, as a result of SEC investigation of several U.S. companies that make illegal payments to foreign governmental officials, politicians, and political parties (Barnes 73). The FCPA had a critical impact on the way U.S. firms do business. Companies that did not accede with FCPA have been subject of whitlow and cultivated enforcement actions that later resulted in huge fines and sentences for their officers and employees. In addition, SEC is responsible for all civil enforcement while Department of Justice is responsible for all criminal enforcement. As a consequence, firms developed specific compliance programs that helped to bar such actions. Event though the FCPA was passed, the Congress became concerned that U.S firms were disadvantaged to foreign companies who periodically paid bribes.

Therefore, after years of duologue in 1997, United States and other thirty three countries subscribe the Organization of Economic Cooperation and Development Convention on Combating grafting of Foreign Public Officials in International Business Transaction. The FCPA is enforced by Department of Justice and SEC and its violation oftentimes occur outside of the United States. Therefore, business people must be knowledgeable about all business activity, including oversea activities (FCPA Enforcement). It is imperative for the companies to comply with FCPA regulations. The Department of Justice requires the board of directors to role review of the compliance program and encourage ethical exile and commitment to comply with the law. Therefore, it is crucial for firms to have written policies and standards to impart employees and... If you want to get a full essay, order it on our website: Orderessay

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