Review The Scenario And Complete The Activity Below This Sce

Reviewthe Scenario Andcompletethe Activity Below This Scenario Can Al

Review the scenario and complete the activity below. This scenario can also be found in the “Questions & Problems” section of Ch. 6, “International and Comparative Law” in Dynamic Business Law. In an interview published by The New York Times in February 1976, former Lockheed President A. Carl Kotchian defended the payment of bribes by the company as follows: “Some call it gratuities. Some call them questionable payments. Some call it extortion. Some call it grease. Some call it bribery. I look at these payments as necessary to sell a product. I never felt I was doing anything wrong.” More than 30 years later, Reinhard Siekaczek, an accountant employed by Siemens who oversaw an annual budget for questionable payments in excess of $50 million, stated: “I never thought I would go to jail for my company. …We thought we had to do it. Otherwise, we would ruin the company. …People will only say about Siemens that they were unlucky and that they broke the Eleventh Commandment. The Eleventh Commandment is, ‘Don’t get caught.’” You have been hired to assist ABC Multinational Company to help educate employees on ethical practices and corporate culture. More specifically, related to the Foreign Corrupt Practices Act, your role is to prevent situations described in the above scenario. Create either a handout, job-aid, poster, or flier to educate employees on the Foreign Corrupt Practices Act. Complete the following for your educational tool: • Explain what the employees should know regarding the Foreign Corrupt Practices Act. • Provide examples of Foreign Corrupt Practices Act violations. • Identify company actions or red flags that might indicate violations of the Act. • List any consequences of the violations. • Recommend actions to report possible violations. • Describe protections for whistleblowers. Why are they important? How do the protections impact the Act? Cite references to support your assignment.

Paper For Above instruction

The Foreign Corrupt Practices Act (FCPA) is a critical piece of legislation that aims to prevent the bribery of foreign officials to obtain or retain business. Enacted in 1977, the FCPA has two main provisions: the anti-bribery provisions and the accounting provisions. The anti-bribery provisions prohibit U.S. companies and individuals from offering, paying, or authorizing bribes to foreign officials to influence official actions or decisions. The accounting provisions require companies to maintain honest and accurate books and records, and popularize internal controls to prevent corrupt practices (U.S. Department of Justice, 2020).

Employees should understand that violations of the FCPA can have severe consequences for individuals and companies alike. Such violations may include offering kickbacks or facilitating bribes in international transactions to secure favorable treatment. For example, paying a foreign official directly or indirectly to expedite customs procedures or win a government contract constitutes a breach of the law. Any arrangement that involves corrupt payments to foreign officials, regardless of the amount, can lead to criminal liability (Securities and Exchange Commission, 2018).

Detecting issues that may indicate violations involves monitoring red flags such as unusually large or undocumented payments, payments made to shell companies or third-party agents without proper due diligence, or transactions that occur in high-risk countries. Other signs include inconsistent or suspicious documentation, reluctance from third-party agents to provide information, or pressures to expedite approvals through unofficial channels. A company should establish a culture of transparency and enforce strict due diligence on third-party relationships to mitigate these risks (Transparency International, 2021).

Consequences for violations of the FCPA are substantial. For corporations, penalties can include hefty fines, loss of reputation, and limitations on doing business internationally. For individuals, violations can result in criminal charges, hefty fines, and imprisonment. The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) actively pursue breaches, emphasizing the importance of compliance (U.S. Department of Justice, 2020).

Employees are encouraged to report any suspected violations through designated channels within the company, such as anonymous hotlines or compliance officers. Keeping open lines of communication and ensuring protection against retaliation are essential. Whistleblower protections under the Dodd-Frank Act and the Sarbanes-Oxley Act serve to safeguard individuals who report misconduct, fostering an environment where ethical concerns can be raised without fear of reprisal (U.S. Securities and Exchange Commission, 2018).

Whistleblower protections are vital because they promote transparency and accountability. They incentivize employees to come forward, helping organizations identify and rectify issues early. These protections also reinforce that adhering to anti-bribery laws is a shared responsibility, ultimately strengthening the company's culture of integrity and compliance (OECD, 2020).

References

• U.S. Department of Justice. (2020). Foreign Corrupt Practices Act. https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act
• Securities and Exchange Commission. (2018). A Resource Guide to the U.S. Foreign Corrupt Practices Act. https://www.sec.gov/spotlight/fcpa/fcpa-resources-guidance.pdf
• Transparency International. (2021). Anti-Corruption & Business. https://www.transparency.org/en/what-is-corruption
• OECD. (2020). Why are whistleblowers important? https://www.oecd.org/corruption/whistleblowers/
• U.S. Securities and Exchange Commission. (2018). Whistleblower Program. https://www.sec.gov/whistleblower