Critical Analysis Essay

2787 Words Nov 22nd, 2015 12 Pages
Jessica Yarington

Critical Analysis: Bribery and its Effect on Business Practices

BMAL 560-D06

Dr. Henry

Critical Analysis

Critical Analysis Topic: Bribery and it’s Effect on Business Practices

PRINCIPLE: * Bribery refers to “the offering, giving, soliciting, or receiving of any item of value as a means of influencing the actions of an individual holding a public or legal duty” (Bribery, 2015). * Economist say that bribery negatively impacts economic growth because it encourages rent seeking behavior (Bribery, 2015). * Rent seeking behavior refers to an “individual’s or corporation’s attempt to illicitly influence the open market in order to provide that individual or corporation with a disproportionate
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* In Australia, 9 out of 10 people thought bribery and corruption were wrong but unavoidable. * Given the magnitude of illegal operations involving bribery, enforcement of the FCPA has increased and resulted in an 85 percent jump in the number of FCPA enforcement actions in 2010 from the prior year. * The Department of Justice and the Securities and Exchange Commission brought a combined 122 FCPA enforcement actions in 2010 and 2011, surpassing any prior two-year period.
PARTICULARS:
* Since 1977, executives representing United States based companies have been prohibited by the US Foreign Corrupt Practices Act (FCPA) from paying bribes to foreign government officials, political parties, or political candidates. * FCPA requires all US companies with foreign operations to adopt accounting practices that ensure full disclosure of the company’s transactions. * Prohibit deceptive and unfair business practices, creates a level playing field for honest businesses, and to restore public confidence in the integrity of the marketplace (SEC, 2015). * The FCPA’s anti-bribery provisions initially apply to three categories of person and entities: (Ernst & Young, 2013) * US persons and businesses (domestic concern) * US and foreign public companies listed on stock exchanges in the United States or which are required to file periodic reports with the Security and Exchange Commission (issuers) * Certain

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