Baker Hughes

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FOREIGN CORRUPT PRACTICES ACT 1. Discuss the economic and social impact of brides and other similar payments in emerging economies. Corruption can take many forms and can be found in many countries, but mainly in the emerging ones. The main form of corruption is the bribery in the form of payments demanded by the government or ministry officials in exchange for a favor (granting a service, awarding a business).Corruption affects all the businesses that interfere with the government, but studies have shown that certain industries are more exposed to it. These industries are construction, airline manufacturing, power plants, and oil and gas production. In emerging economies the impact of bribes and other similar payments can affect…show more content…
Overall new procedures put in place were beneficial for Baker Hughes because they improved compliance and they also improved the company’s business operations. 5. Discuss whether the payments outlined on pages 12 and 13 are foreign corrupt practices. Yes, I think that the payments outlined on pages 12 and 13 should be considered corrupt practices because of the way they were registered in the company’s books -it was in compliance with the FCPA because of the anti-bribery provision and the books and records provision. 6. Evaluate whether the changes in Exhibits 4 and 5 are likely to stop future foreign corrupt practices at Baker Hughes. All the changes in Exhibits 4 and 5 are related to the agents that Baker Hughes will use in the future. The changes in Exhibits 4 and 5 are likely to stop future corrupt practices at Baker Hughes because they will provide the company with more information about the agents that they are about to hire (information that they didn’t have before). The information is referring to agents’ background, competence, reputation, their intentions, experience, skills, and their integrity and willingness to comply with FCPA. So Baker Hughes will be able to prevent and eliminate any acts of corruptions. 7. Discuss how the compliance and governance changes are likely to impact the future profits and shareholder value at Baker Hughes. The compliance and governance changes implemented at Baker Hughes
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