...2012 Mr. James Blevins Learning Team Reflection This learning team reflection will discuss the compliance issues associated with the Foreign Corrupt Practice Act of 1977 (FCPA). What is Foreign Corrupt Practice Act? For those who don’t know might ask, well, the Foreign Corrupt Practice Act of 1977 which was introduced in the U.S Senate as S.303 by Mr. William Proxmire (D.W) and signed into law by president Jimmy Carter on December 19, 1977 is a United States Federal Law known primarily for two of its main provisions. One that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another one concerning bribery of foreign officials. The anti-bribery provision of the FCPA prohibits any person from making use of interstate commerce corruptly, in furtherance of an offer or payment of anything of value to a foreign official, Foreign Political Party, or Candidate for political office, for the purpose of influencing any act of that foreign official in violation of the duty of that of that official, or to secure any improper advantage in order to obtain or retain business. ("Wikipedia") The “Foreign Corrupt Practice Act” protects “American Values” it shields us from the rampant corrupt practices around the world. It holds us to the highest standards of ethics. As the U.S corporations venture into foreign markets they must keep in mind that what is against the law in U.S such as Bribery could be accepted or even are part of their culture...
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...Sarbanes—Oxley Act. Journal of Economic Perspectives, (Vol. 21, Number 1) . Retrieved on June 10, 2012 from http://www.cbe.wwu.edu/dunn/rprnts.GoalsPromiseSOX.pdf I will use this to explain what laws existed before Sarbanes—Oxley. I will also show how Sarbanes—Oxley has helped and what purpose the act has. 2) Dennis, B., & Hamburger, T., (2012) . 5 proposed amendments to the Foreign Corrupt practices Act [Electronic version] . Retrieved on June 10, 2012 from http://www.washingtonpost.com/business/economy/5-proposed-amendments-to-the-foreign-corrupt-practices-act/2012/04/25/gIQAXbuVhT_story.html This site will be use with the sites on the act to explain how the act works. I will be working my own opinion with the work of others into explain this act. 3) Ernst, Daniel R., (2009) . Lawyers, Bureaucratic Autonomy, and Securities Regulation During the New Deal. Retrieved June 9, 2012, from Georgetown Law: http://scholarship.law.georgetown.edu/fwps_papers/115 I will use this reference to learn more about the Securities Acts of 1933 and 1934. This journal talks about who was involved in creating this act and why they created it. 4) Foreign Corrupt Practices Act. (n.d.) . Retrieved June 11, 2012, from http://www.justice.gov/criminal/fraud/fcpa/docs/lay-persons-guide.pdf I will use this site for information and how the act is written. I will use this information to explain what is in the act and what corporations must do to obey the act. 5) Foreign Corrupt...
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...reference to discuss the regulations of the Oxley Act of 202 and the Securities Act of 1933 and what accountants can do to prevent from breaking these regulations. This article goes in depth about the regulations and how they are enforced. 2. Bank of America Corporation Other Release No.: 34-73243 I am going to use this article to show laws that were broken relating to keeping books and records in reasonable detail. 3. Beatty, J. F., Samuelson, S. S., & Bredeson, D. M. (2013). Introduction to Business Law. Mason, OH: Cengage Learning. I am going to use this source to discuss the responsibly of each client. 4. Chaffee, E. C. (2014). LEAD ARTICLES EDITION: Current Trends in International Trade and Their Impact on Multinational Business: ARTICLE: From Legalized Business Ethics to International Trade Regulation: The Role of the Foreign Corrupt Practices Act and Other Transnational Anti-Bribery Regulations in Fighting Corruption in International Trade. Mercer Law Review, 65701. I will use this reference to discuss the regulations of the Foreign Corrupt Practices Act of 1977 and how they were broken by accountants. This article goes in depth about the regulations and how they are enforced and lwas that have been broken by ceratin accountants. 5. Holt, M. F. (2008). The Sarbanes-Oxley Act : Costs, Benefits and Business Impact. Amsterdam: CIMA This article discuss the benefits of following the regulations of the Oxley Act of 2002. 6. Ford, C. (2014). FOR WHOM...
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...author’s name, and institution name) Environmental Factors Paper Ikea, one of the largest big box chain stores in the United States and abroad is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. This paper will identify environmental factors that shape the organization and impact marketing decisions. It will discuss the influence of global economic interdependence and the effect on trade practices and agreements. The paper will discuss the importance of demographics and physical infrastructure, analyzes cultural differences, and examines the importance of social responsibility. Finally, the paper will analyze the effect of political systems and its influence on international relations, the influence of the Foreign Corrupt Practices Act of 1977, and the influence of local, national and international legislation on Ikea’s business practices. There are many macro-economic factors that impact and shape marketing decisions at Ikea. These factors include economic, environmental, political, social, technological, legal and cultural (Unknown, 2007). These factors influence the decisions the organization makes, how it operates nationally and globally and how it will adjust to the factors to ensure the business will continue to operate smoothly. Politically, Ikea is impacted by local government and what products the local government believes that is best...
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...it is making them money. Throughout history there has been many examples of this Enron, AIG, and Merrill Lynch. Unethical practices are nothing new in our country. Forbes has a very interesting article named “ Executive Beware: The SEC Now wants to Police Unethical Corporate Conduct where it talks about how unethical behavior among companies has been increasing in the last few decades and how new laws have had to been drawn up in order to try and control the irresponsible actions of many companies: “ The focus on ethics in corporate operating procedures is a trend that has grown over the last few decades. This growth has largely been driven by the passage of and amendments to three major pieces of legislation: the Foreign Corrupt Practices Act (FCPA), the Federal Sentencing Guidelines (FSG), and the Sarbanes-Oxley Act of 2002 (SOX Act). The FCPA, passed by Congress in 1977, marked the beginning of prosecuting unethical corporate conduct. It was passed in response to Congress’s realization that a massive number of American companies were engaged in the unethical practice of bribery overseas. It criminalized illegal and questionable payments to foreign government officials, and required publicly traded companies to maintain records that accurately and fairly represent the company’s transactions. ” The Foreign Corrupt Practices Act was enacted in 1977 and is a United...
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...Jessica Yarington Critical Analysis: Bribery and its Effect on Business Practices BMAL 560-D06 Dr. Henry Critical Analysis Critical Analysis Topic: Bribery and it’s Effect on Business Practices PRINCIPLE: * Bribery refers to “the offering, giving, soliciting, or receiving of any item of value as a means of influencing the actions of an individual holding a public or legal duty” (Bribery, 2015). * Economist say that bribery negatively impacts economic growth because it encourages rent seeking behavior (Bribery, 2015). * Rent seeking behavior refers to an “individual’s or corporation’s attempt to illicitly influence the open market in order to provide that individual or corporation with a disproportionate amount of wealth” (Bribery, 2015). * The United Nations reported that corruption costs governments about $1.6 trillion dollars every year. * Economists estimated, based on a poll done in 86 countries, that 1 in every 4 businesspersons worldwide, paid a bribe in the past year (Lawrence & Weber, 2014). * Legislation has been established in an attempt to combat bribery. * The US Foreign Corrupt Practices Act (FCPA) is considered to have the widest jurisdictional reach, being aggressively enforced, both nationally and worldwide (Ernst & Young, 2013). PRACTICE: * Bribery is found in almost all sectors of the global market (Lawrence & Weber, 2014). * An analysis of Transparency International’s Corruption...
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...FCPA PAPER The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the 1970s and the proliferation of white-collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress's objective was to restore confidence in the manner U.S. companies’ transacted business. The FCPA is unique. Throughout history, governments have had laws making it illegal for governmental officials to take a bribe. One basic provision of the FCPA is that it prohibits U.S. partnerships, companies, and organizations from not only giving payments but also offering or authorizing payments to foreign officials or political parties with the objective of encouraging or assuring business relationships. There are two types of bribery provisions. The first prohibits any bribes made directly by the U.S. company. The second prohibits any organization from knowingly arranging for a bribe through an intermediary. Many thought that the FCPA would place U.S. companies at a disadvantage in the...
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...Michael Wheeler and Jeffery Stewart LAW/531 June 16, 2013 Erikka Hise The Foreign Corrupt Practices Act This assignment instructed us to read four articles concerning Legal Issues in International and Domestic Business Foreign Corrupt Practices Act. Within this assignment it discussed the crisis in corporation’s unethical practices. The Foreign Corrupt Practices Act of 1977 sparked the argument that United States companies are disadvantaged in international markets. The act has been controversial since its enactment, with some critics attacking it as ineffective and the American business community complaining that it places U.S. enterprises at a competitive disadvantage abroad. Since the late 1990s, however, it has become a model for international efforts to stamp out corruption and improve the business climate in the developing world. Civil lawsuits are another risk from poor FCPA compliance. Typically those claims are securities class-action lawsuits or shareholder derivative lawsuits, where plaintiffs argue that the FCPA problem (Klein & Aguilar, 2010). Nevertheless, in recent years FPCP had serious fraud litigations because some companies in other countries do not go by the FPCP. The Foreign Corrupt Practices Act Program Compliance professionals should conduct a regular internal control check on his or her Foreign Corrupt Practices Act program. The current program in place only works if it is properly implemented and daily monitored...
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...In (FCPA. Shearman.com: the One-Stop Resource on the Foreign Corrupt Practices Act) the court case involving the “U.S. v. Lockheed (1994), the corporation and two of its executives were accused by the U.S. Department of Justice (DOJ) of paying a US $ one million bribe to a member of the Egyptian parliament in order to secure sale of aircraft to the Egyptian military.” Lockheed also submitted fraudulent statements to the Defense Security Assistance about the bribes This was a clear case of corruption in business practices that continue to go on today. Many large corporations have gotten away with this type of practice time and time again. I am also under the assumption this is not the first time Lockheed has consorted with other businesses by unethical means. This practice states; corruption is an integral part of business deemed to be normal practices. Lockheed plead guilty paying over $24 million in fines and penalties. The fines were a result of Lockheed violating the Foreign Corrupt Practices Act (FCPA). The Foreign Corrupt Practices Act was authored by Senator William Proxmire which was created to prevent U.S. corporations from using bribes to gain sales outside of the country (Professor M. R. Kumara Swamy, 2011). This act was enacted to eliminate…(Professor M. R. Kumara Swamy, 2011) “government corruption, subsidies and kickbacks.” The act has been over looked by U.S. corporations since it was established since 1977 and 1988 versions. What brought the government to finally...
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...misleading of accounting principles and fraudulent business practices an organization must retain strong internal controls within their international operations. Stryker Corporation had been recently confronted by Securities and Exchange Commissions and got a direct experience. In the following reflection, Team B applies the IRAC method of case analysis to observe Stryker’s treatment and conduct of violations connected to the Foreign Corrupt Practices Act (FCPA). We will summarize four factors regarding IRAC: 1) issue 2) rule 3) analysis and conclusion. Thorough analysis of the IRAC results will help Team B’s interpretation of the significance of internal controls in handling legal risk in international business transactions. Issue Did “Stryker violated the Foreign Corrupt Practices Act by making $2.2 million in unlawful payments to foreign government officials while describing the payments as legitimate expenses in the company’s books and records?” Did Stryker Corporation demonstrates intentional misrepresentation by failing to plan and preserve an acceptable system of internal accounting controls? Is intentional misrepresentation being displayed in this case (fraud or deceit)? Rule “The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business...
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...product such as geography, customer needs, demographics, and methods of distribution. To be able to capture a better marker share globalization is put in place so that new marketing shares can open up new ventures for sales. Domestic and global marketing The organization that I am most familiar with that conducts domestic and global marketing is the Toyota Motor Corporation. Toyota is the world's largest automaker (The Associated Press, 2013). Toyota is one of the top-selling brands in America and we are committed to continuous improvement in everything we do, along with breakthrough products for the future (Toyota Motor North America, Inc., 2013) The factors that impact on the marketing strategies of Toyota Motor Corporation are trade practices, demographics and physical infrastructure, cultural differences, social responsibilities and ethics, political systems and technology. These factors are challenges that effect the normal functioning of business organizations. Global economic interdependence and trade agreements Due to the influence of global economic interdependence Toyota has had to purchase parts and materials from other countries which have resulted in maximizing revenues to increase market shares in other regions to conduct business. Importing and exporting of goods and services highly contribute to global interdependence (BusinessDictionary.com, 2013). A trade agreement is a contract/agreement/ between two or more nations that outlines how they will work together...
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...February 24, 2012 Gary White Environmental Factors Paper Wal-Mart is one of the world’s largest retail stores across the nation. They are the leaders in employment opportunity, sustainability, and corporate philanthropy (Wal-Mart, 2012). Wal-Mart has 10,020 stores in more than 28 countries. They employ 2.2 million people and serve 176 million customers per year (Wal-Mart, 2012). This paper will look at Wal-Mart and analyze environmental factors that have effects on Wal-Marts marketing decisions both domestically and internationally. Global Economic Interdependence and the Effect of Trade Practices and Agreements Global Economics Interdependence is defined by the business dictionary as, “mutual dependence at a global level” (Business dictionary, 2012). This is where one country depends on another country and that country will depend on another country and so on; this will eventually mean global independence (Business dictionary, 2012). Importing and exporting different goods is a large part of Global Economic Interdependence. Wal-Mart does everything in their power to help the customers save money on the products and merchandise they purchase by offering these products at lower prices than many of their competitors. People throughout the world want to shop at a place that they know will save them money and even possibly...
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...that would have the interest of Augusta’s 19th Hole. The marketing team worked diligently to provide Team B with many creative ideas to help with the marketing success of Augusta’s 19th Hole. Augusta’s 19th is currently in the phase 3 of the marketing plan. Phase three is deals with the environmental factors that affect Augusta’s 19th Hole. The environment as a whole has a great effect on the establishment. Whether it is having clean air or clean landscaping, the environment indeed has a great effect on Augusta’s 19th Hole. This paper will analyze the influence of global economic interdependence and the effect on trade practices and agreements, examine the importance of demographics and physical infrastructure, and analyze the importance of cultural differences. Analyze the influence of Global Economic Interdependence and the Effect of Trade Practices and Agreements According to C.P. Chandrasekhar "Economic Interdependence And Instability In The Global Economy" (2005), “There is little disagreement among economists that economic integration and enhanced Interdependence have been the inevitable consequences of trade and financial liberalization since the late 1970s” One would think that the Augusta’s 19th Hole would not have an interest in the global market. Augusta’s 19th Hole primary interest is to garner the attention of the larger overseas corporations so that they may want to hold seminars or conference in Augusta, GA. Team B has business contacts overseas that...
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...MKT 421 Environmental factors are identifiable elements in the physical, cultural, demographic, economic, political, regulatory, and technological environment that affect the survival, operations, and growth of an organization. A global organization such as Target has to take into consideration these environmental factors to continue to grow outside the borders of the nation of origin. This paper will analyze global economic interdependence, the effect of trade practices and agreements, the influence of cultural differences, the effect of political systems, and the influence of international relations in relation to Target. This paper will also analyze the importance of demographics and physical infrastructure, the concepts of social responsibility, and the ethical and legal obligations of Target. An explanation of the effects of technology and the influence of the Foreign Corrupt Practices Act of 1977 as well as the influence of local, national, and international legislation on Target policies and practices, are included.("Environmental factors," 2012) Environmental Factors Although Target stores have only recently moved into a global market with the acquisition of properties in Canada, Target Corporation has been a global organization for decades. Target has multiple divisions operating in other nations throughout the world. India is home to the Target IT solutions, customer service, and technical support divisions. There are many offices throughout Europe and Asia...
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...nations hold entirely different standards of both law and ethics. In America, business ethics can be employed because, in general, the disagreement between what actions are ethical and what actions are unethical in a single culture will be lesser than the disagreement between two entirely different cultures with different values and cultural practices. As a result, one business might believe it is acting perfectly in accordance with international business ethics, while another would view that first business as acting in a completely unethical fashion. Many businesses adopt the policies of cultural relativism, in which they attempt to take on the business ethics exhibited by the nation in which the business is working a particular deal, as opposed to attempting to carry any of their own business ethics across cultural boundaries. However, this practice is not without its own flaws. For more information on the basic issues and problems facing any attempts to form coherent international business ethics codes, click the link. One of the biggest problems facing any international business code of ethics is that standards for employment practices are not constant...
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