Foreign Corrupt Practices Act
The Foreign Corrupt Practice Act also known as FCPA was established in 1977. The FCPA is a United States of America federal Law that maintains accounting transparency from being distributed with falsified information that is considered as fraud. And prevent bribery from occurring with foreign officials.
The Law is applied on any person who has any connection with the United State Business and involved in foreign corrupt practices. The FCPA applies to any act by the United States businesses, citizens and all foreign businesses that is or wish to be in The United states of America. The Act controls all payment to foreign officials, parties and responsible to investigate all bribery occurring with foreign officials.
Those who are subject to FCPA must have securities registered such as security, books, and records. In addition, all official reports mentioned should be filed under the Securities and Exchange Act. Under the law, companies with securities registered in the United States must meet the accounting provisions. These provisions are designed to prevent bribery from occurring. In case of violating the federal Law, FCPA act as a defender for to the business ethics where all forms of bribery are excluded. Wal-Mart is one case where we can see the FCPA in action. The FCPA does not always attain its goal by eliminating fraud and bribery to officials. Since there must be physical proof to be able to take legal procedure, the FCPA sometimes fails to execute its laws on unproven bribery with official foreign.
However, failing to apply the FCPA does not decrease its federal power. Without the FCPA, The local, international businesses and foreign officials present in the United States will be in utter chaos. Where bribery and fraud would affect the decision making of the local officials and negatively affect the United Sates economy.
The Wal-Mart proves that foreign officials bribery may occur and get away with it. However,...