The Political And Legal Environment Essay
Corruption is a large issue in Brazil. In the Corruption Perceptions Index of 2014, Brazil scored 43 points on a scale of 0 (highly corrupt country) to 100 (very clean country). Last year, a scandal involving the national oil company Petrobras was reported on the media. Money laundry has moved illegally 10 billion reais and part of that money was sent to people from the government. The population has made several peaceful protests against the government and corruption. The situation seems to continue for long time, since the president Dilma Rousseff was reelected last year. Thus, corruption is a political risk for companies that are trying to enter the country.
In 2013, Rousseff signed the Anti-Corruption Law, which imposes civil and administrative liability on companies that commit corrupt acts, especially bribery, against national and foreign public administration. According to Inside Counsel (2013),
Liability under the law can be premised on the following “wrongful acts”:
• Promising, offering, or giving an undue advantage, directly or indirectly, to a public official, or a third person related to the official;
• Financing, sponsoring, or in any way subsidizing, the performance of a wrongful act under the law;
• Using another person or entity as an intermediary in order to conceal the company’s real interests or the identity of the beneficiaries of the illegal act; and
• Obstructing or interfering with the investigations, audits, and…