Enviromental Factors

In today’s ever changing and competitive modern world of business, it is critical for the companies to have activities internationally. In order to prohibit frauds and illegal activities, several acts and documents have been elaborated. One of the documents is Foreign Corrupt Practices Act that has been enacted in the 1970’s, as a result of SEC investigation of several U.S. companies that made 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 comply with FCPA have been subject of criminal and civil enforcement actions that later resulted in huge fines and sentences for

OECD published Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and Related Documents to prevent bribery and corruption. The aim of this convention was making the bribery of a foreign public official a crime under their laws (International Monetary Fund, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, 2001). This document recommends to member countries that:

The Foreign Corrupt Practices Act has been pursued by government agencies recently as the SEC, the FBI, and Department of Justice are cracking down on international business corruption. Companies are working harder at expanding economically in the market by doing business with individuals and other companies in foreign countries. Foreign countries are not always in compliance with US laws and regulations, causing US companies who deal with them issues with compliance on the home front. Because of these ongoing issues congress decided to introduce the Foreign Corrupt Practices Act and to prosecute foreign companies for corrupt activities within the United States. The Foreign Corrupt Practices Act is a federal law that was amended in 1977,

The largest impact internationally has been the result of the awareness of the FCPA. Since the U.S. government enacted the FCPA, it has raised awareness in foreign countries, many of which have enforced their own anti-bribery laws and have also signed on to the Organization for Economic Co-Operation and Development’s (OECD) Anti-Bribery Convention to show their commitment to the regulations of the anti-bribery laws. The OECD actually has no authority to enforce legislation and relies on the member countries to regulate the anti-bribery law. Foreign companies who are associated with U.S. markets and foreign government officials are now aware of the consequences of violating the FCPA.

The Foreign Corrupt Practices Act of 1977- is a U.S. Federal Law that prohibits any U.S. citizen from bribing a foreign official for the purpose of obtaining

The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the 1970s and the proliferation of white-collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress 's objective was to restore confidence in the manner U.S. companies’ transacted business.

While reading this case analysis, The Foreign Corrupt Practices Act came into discussion as an underlying factor in Weihardt’s decision. The Foreign Corrupt Practices Act 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. This practice applies to Weinhardt in the fact that he was given the opportunity to give Lee a bribe to obtain Lees’ business.

Author Scott Nette clearly explains that in July 2007, Anthony Tesvich, Melissa Tesvich, James P. Robinson and Ronald K. Jonston was Investigated, charged and convicted on the Foreign Corrupt Act. “The Foreign Corrupt Act States that it is illegal for an US person, entity and certain applicable foreign entity to make and/or accept bribes or offer any inducement for the purpose of obtaining or retaining business with an US firm.” – Scott Nette

There are many corporate organizations that have expanded their business opportunities outside of the U.S. Consequently, these global organizations are required to conform to The Foreign Corrupt Practices Act of 1977 (FCPA). Under the FCPA, anti-bribery and accounting provisions exist for companies to identify unlawful acts and comply with requirements by maintaining accurate records of transactions and implementing internal controls. (DoJ, 2015a, FCPA: An Overview section, para. 2-3).

Before 1998 any foreign enterprise or foreigner was not limited by FCPA except foreign enterprise issuers. But the amendment of FCPA in 1998 greatly extended the jurisdiction of U.S government. If any independent foreign enterprise or individual directly or through agent had bribery on foreign officials in U.S they would violate the regulations of FCPA. Except that all the issuers above mentioned, domestic enterprise or employee in foreign enterprises, senior staff, directors, shareholders and agent were restrained by the law. The ministry of justice was authorized to convict the employee of enterprise according to regulations of FCPA whether the enterprise was guilty or not.

Moreover, the Foreign Corrupt Practices Act makes it unlawful for certain classes of people and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provision of the FCPA prohibits the willful use of the mails or any means of instrumentality of interstate commerce to be corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money on anything of value to any person. While knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official. Through his or her official capacity inducing the foreign official to do or omit to do an act in violation of he is or her lawful duties, or to secure any improper advantage in order to

The legal aspect of the Foreign Corrupt Practices Act (FCPA) of 1977 is very critical, which is a U.S. Federal Law that prohibits any U.S. citizen from bribing a foreign official for the purpose of obtaining improper advantages to secure or retain a business. (Legal, I. U. (n.d.). The Foreign Corrupt Practice Act (FCPA) applies to all organizations that are recorded on any stock trade or operating a business in the United States. Cultural differences of business practices are a major

The Foreign Corrupt Practices Act of 1977, (FCPA), was enacted in 1977 and prohibits U.S. businesspersons from bribing foreign officials in exchange of favorable business contracts, obtaining or retaining business. (Miller, Hollowell, 2014, pg. 24).

The Foreign Corrupt Practices Act (FCPA) governs the conduct of business operations and activities by American companies engaged in international business (Mundial, 2013). Through the statutory provisions of the FCPA, companies are prohibited from soliciting unfair advantage in their activities by paying bribes or offering to pay them directly or

Transnational bribery and corruption are intensifying ethics and compliance concerns for companies doing business on a global basis as prosecutors pursue a record number of cases and penalties for offenses escalate dramatically.