U.S. Foreign Corrupt Practices Act Essay
As you are aware of the Foreign Corrupt Practices Act (FCPA) contained in our constitution, we cannot do what other firms are doing. I had been aware of such illegal undertakings done by other firms, but I have been hesitance to engage the firm into such illegal activities. This is because one of the Axetem International Company’s policies is to adhere to all set regulations by the government. Many firms all over the world have been giving out bribes in order for the government functionaries to discharge ministerial or clerical duties. The payment of bribes influences the acts and decisions of foreign officials to be unethical, unnecessary and a acute business transaction.
For instance, I can remember that after the enactment of the Foreign Corrupt Practices Act. An investigation conducted by SEC uncovered over 400 cases where U.S. businesses transacted illegal payments to the foreign governments’ officials, which amounted up to $300 million. This not only tarnished the American businesses but also makes the country to loss integrity as a whole (Tarun, 2010).
I will affirm my decision of not giving bribes by reminding you about the FCPA provisions. The provision prohibits the American corporations from giving bribes to foreign officials. It requires a clear record-keeping and accounting practice that will prohibit the establishment of an undercover account used to finance illegal payments.
The provision prohibits the American people and corporations from engaging in various activities. It clearly explains that any issuers of securities-or any directors, officers, or employees cannot use the mails, internet, phone system or any other means to interstate commerce in order to be given an offer, or payment to any foreign officials. This will be an act of corruption because this will influence the decision of the foreign official. If one gets into such a transaction, it will be a violation of the FCPA.
The record keeping and accounting provision is not well known, but it is equally indispensable. This provision requires all the U.S. corporations to keep clear records and accounts in a way that reflects all their transactions and disposition of assets (Murphy, 2010). Every business with securities which registers with the SEC should: keep records, books, and accounts which fairly reflect transactions and dispositions of assets by the issuer and have an internal accounting control that clearly show when transactions occur.
The provisions give SEC authority over the complete financial managing and reporting requirements of all publicly held US corporations. The purpose of the provisions is to discourage fraudulent accounting and reporting practices. If one violates either the accounting or the bribery provisions, he/she can be subjected to both civil and criminal penalties. An individual might be prosecuted for the violation of the FCPA even if his/her company is not liable. Violation of this act can lead to considerable fines and prison terms (Cassin, 2008).
SEC has been ordering the U.S. businesses to disgorge any profits made through the violation of the FCPA. In addition, an individual or corporation found to be violating the FCPA may be subjected to additional government actions such as barring them from conducting business with the federal government, denial of export licenses and even suspension from programs provided by the Overseas Private Investment Corporation and the Commodity Futures Trading Commission.