The Foreign Corrupt Practices Act Essay

1766 Words Dec 9th, 2015 null Page
The Foreign Corrupt Practices Act (FCPA) was established in 1977 by Congress to ensure that all American businesspeople and companies were using ethical behavior when participating in international sales and contracts. At the time, companies based out of other countries would often bribe government officials to ensure that they received preferential treatment in any contracts they may enter with another business entity or a consumer and American companies and businesspeople had established an unwritten “When in Rome” policy towards any contracts they may enter on an international scale (Miller & Hollowell, 2014).
When establishing the FCPA, Congress had the intention to ensure that American businesses and individuals were not using unfair means to “secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person” (“Foreign Corrupt Practices Act”, 2015). In essence, the FCPA was created to ensure that all American businesses were using fair and ethical practices when making any business deals in an international setting. While the FCPA primarily focuses on bribery of large amounts, the same penalties may apply for offering anything of value to a foreign government official that is facilitating your contract per local law.
The Act was established with both front-line business people that would be present for any meetings or negotiations regarding the contract that was to be formed or that was currently in…

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