Abstract
International business has changed the way businesses and government operates. Due to the difference in ethical practices in the U.S. as opposed to the standards of other countries corporations often times find themselves in violation of U.S. laws. The Foreign Corruption Practices Acts of 1977 are a set of laws that prohibit bribery to foreign officials and the use of specialized accounting practices to hide these transgressions. Walmart is one of the latest multi-million dollar corporations accused of bribing foreign officials. Who should be at fault the government for not catching these violations or the corporations for using any means possible to make a dollar? Global business has caused ethical dilemmas not only for corporations …show more content…
The Foreign Corruption Practices Acts has five elements to constitute a violation. The first is any individual, firm, employee, or agent who is U.S. based or has U.S. registered securities that are providing the bribe. Secondly, is intent to influence power through a transfer of money. Third, promising payment, payment, or offering anything of value to a recipient for an advantage. The recipient of the bribe is an officer, employee, or any person acting as an official that is receiving the money is the fourth criteria. The Fifth element is payments made to obtain or retain business (Hermanson, 2015). The Foreign Corruption Practices Acts applies to this case because Walmart is a U.S. corporation with U.S. securities and allegedly met all five of criteria to constitute a violation (Ghillyer, …show more content…
Bad publicity along with the cost of the internal investigation has reduced shareholder confidence in the executives that previously managed the business. Shareholders will be vigilant to ensure that corporate governance meets the criteria of the laws in the U.S. and abroad. Since the alleged violations Walmart has spent 791 million dollars on legal fees and an internal investigation. The Department of Justice and the Securities Exchange Commission have proposed that Walmart pays 600 million in penalties for the violations (Robinson, &Schoenberg
International business has changed the way businesses and government operates. Due to the difference in ethical practices in the U.S. as opposed to the standards of other countries corporations often times find themselves in violation of U.S. laws. The Foreign Corruption Practices Acts of 1977 are a set of laws that prohibit bribery to foreign officials and the use of specialized accounting practices to hide these transgressions. Walmart is one of the latest multi-million dollar corporations accused of bribing foreign officials. Who should be at fault the government for not catching these violations or the corporations for using any means possible to make a dollar? Global business has caused ethical dilemmas not only for corporations …show more content…
The Foreign Corruption Practices Acts has five elements to constitute a violation. The first is any individual, firm, employee, or agent who is U.S. based or has U.S. registered securities that are providing the bribe. Secondly, is intent to influence power through a transfer of money. Third, promising payment, payment, or offering anything of value to a recipient for an advantage. The recipient of the bribe is an officer, employee, or any person acting as an official that is receiving the money is the fourth criteria. The Fifth element is payments made to obtain or retain business (Hermanson, 2015). The Foreign Corruption Practices Acts applies to this case because Walmart is a U.S. corporation with U.S. securities and allegedly met all five of criteria to constitute a violation (Ghillyer, …show more content…
Bad publicity along with the cost of the internal investigation has reduced shareholder confidence in the executives that previously managed the business. Shareholders will be vigilant to ensure that corporate governance meets the criteria of the laws in the U.S. and abroad. Since the alleged violations Walmart has spent 791 million dollars on legal fees and an internal investigation. The Department of Justice and the Securities Exchange Commission have proposed that Walmart pays 600 million in penalties for the violations (Robinson, &Schoenberg