Stopping Fraud and Illegal Activities in Organizations that Conduct Their Business Internationally

1415 Words Jan 29th, 2018 6 Pages
In order to stop fraud and illegal activities from happening there are a few acts and documents that have been enabled. The Foreign Corrupt Practices Act (FCPA) is a law that congress primarily passed in 1977. This act prohibits businesspersons from bribing foreign officials to secure advantageous contracts. The United States also regulates payments to foreign officials. Giving cash or kind benefits to foreign government officials to obtain business contracts and other favors, this is actually often considered a normal practice to do. To reduce such bribery among representatives of the U.S. Corporations, Congress enacted the Foreign Corrupt Practices Act also known as FCPA in the year of 1977. The policy behind the FCPA was to combat the negative impact of bribery on free and fair market competition. The issue which led to the passing of the FCPA was the ethical problem in international business dealings which had to do with the legitimacy of some side payments being made to government officials. In the U.S. most contracts that are formed are formed within the private sector. This is different though in foreign countries because decisions on major construction and manufacturing contracts are made by government officials because of extensive government regulation and control over trade and industry. Side payments…
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