Caselets: Bribery and Extortion in International Essay

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Bribery and Extortion in International Business Case

1. Case 1 (payment to general’s Swiss bank account): Would you make the payment to the general’s Swiss bank account? Why or why not? You should discuss the relevant laws in your answer.

I would not make the 2 million dollar payment to the Swiss bank account of the general in charge of the ministry. First, this payment would be in direct violation of U.S. law, the foreign corrupt practices act (FCPA). This law forbids any payment by a company, its employees, or its agents directly or indirectly to a foreign government official or a foreign political party. Providing this payment is a bribe, this practice can lead to large fines and prison time and personally I don’t look good an
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3. Case 3 (Shares to family of President) Would you provide shares to the President’s son? You should discuss the relevant laws in your answer.

No I would not provide any shares to the president’s son and make him a partner. This is a violation of the FCPA. The case also states that the President’s son is 1: partner of a number of important companies in that country and 2: does not possess any business skills. Even if I was willing to try my luck and make him a partner, he seems to be over extended by being a partner of other important companies. How much time would he be able to provide in building the electrical company? Not to mention that he does not have any useful business skills. I have an obligation to my organization to make sure partners have the proper experience and skills.

4. Case 4 ($25 to police station to fix registration) Would you authorize the payment of $25? You should discuss the relevant laws in your answer.

Yes, I will authorize this payment of $25, this is allowed under the FCPA. Exceptions under the law are made for payments to low-ranking officials who merely expedite the nondiscretionary granting of a permit or a license. In this case I need to complete the sale of an old company car and in order to do so I will need the registration dates on the form and in the police records to

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