Ethics- Bribery in the International Community “Con” By: Macha Shinhoster Sr. Kaplan University, Online Class: LS501-01 Ethics and the Professional 10 February 2012 The issue is bribery in the International community and why is it illegal and unethical. Before 1977 some countries had less stricter sanctions on bribery depending on the country and the violation, the United States government made the choice for businesses getting the Department of Justice involved. The Act of 1977 prohibited U. S. ationals and U. S. corporations from making payments to foreign officials for the purpose of obtaining or retaining business. Bribery is an illegal action caused by the person who accepts the bribe in exchange for services or goods. Different cultures have many degrees about what constitutes bribery. The differences of cultural perception of bribery become important in the third world of international trade. An action that might be innocent in the United States might not be a crime in another.
Bribery of any kind is clearly against the law under the Foreign Corrupt Practices Act. “The law prohibits U. S. companies from paying or offering to pay, foreign-government officials or employees of state-owned companies to gain a business advantage. It covers nonmonetary gifts or offers in addition to cash payments, and is worded broadly enough that its spawning an army of consultants, some of whom once prosecuted bribery cases for the Justice Department, who offer to interpret the gray areas”(Searcey, 2009)
These are some of the problems that bribes created, they were violations of the area where the companies wanted to invest and also violations against the country from where the company formed, paying bribes hurts the national industry as well as the international community, often the companies bribing their American competitors out of the same job, which created greed in most countries officials who were on the receiving end. The rich got richer and poor less able, the products used cheap labor workers to make the products at a fraction of the cost.
Multinational Corporations are accused of social injustice and poor working conditions. They are unfair to the employees and use them as slave labor while living in poor environments. The businesses have a lack of concern for the environment and mismanagement, where child workers and prisoners are used to work in inhuman conditions. Meaning safety standards are ignored to produce cheap goods. Corporations who use bribes for business profits are subject to investigation by the FCPA. The FCPA is regulated by the U. S. government federal officials.
The Federal officials are destined to the disciplinary actions of such federal criminal acts. The Federal government set up a website to report bribery and extortion of international trade, these websites are anonymous. (bribeline. org) The Obama Administration has set a goal of doubling US exports in the next five years, so FCPA compliance will become important to many small and mid-size US companies. In recent years a high percentage of the total fines imposed by the DOJ have come from FCPA cases. Total penalties imposed by the DOJ and SEC for violations the FCPA: 2008 ($893m), 2009 ($622m), 2010 ($1. b), and 2011 ($161m in the first quarter) (Clayton, 2011). As regulations continue to proliferate across borders and as businesses expand to new and emerging markets, organizations increasingly are exposed to multiple regulatory framework and legal systems. The question remains at many such organizations whether the design of their existing compliance programs can be effective in such an environment. References 1. Collins, Mike, The Leading Source of Manufacturing News and Insight Pros and Cons of Globalization retrieved 1/29/13. http://www. Manufacturing . net/articles/2010/06/the-pros-and-cons-of-globalization . Searcey, D. (2009). U. S. Cracks Down on Corporate Bribes. The Wall Street Journal. Retrieved from http://online. wsj. com/article/SB124329477230952689. html 3. http://www. bribeline. org/bribeline. jsp 4. Clayton, S (2011, June 1). Top ten basics of foreign corrupt practices act compliance for the small legal department. http://www. acc. com/legalresources/publication /topten/SLD-FCPA-Compliance. cfm 5. Girgenti, R. H. (2009). More Nations Bringing Bribery and Corruption Enforcement Actions. Ethisphere. http://ethisphere. com/more-nations-bringing-corruption-enforcement-actions/