The U.S. Foreign Corrupt Practices Act’s main purpose is to prohibit bribing foreign officials, and it applies to misconduct inside and outside the United States. So even if your organization has no direct foreign component, you need to understand the scope of the FCPA to encourage and maintain healthy business ethics within your workplace.
Why “U.S. Foreign Corrupt Practices Act” Matters:
- The U.S. FCPA’s main focus is to thwart corruption, which is crucial to the success of your business.
- Bribery undermines the stability and security of businesses worldwide and increases risk for all organizations conducting business.
- Companies with ineffective internal controls face risks, such as embezzlement, commercial bribery, export control problems, and violations of multiple laws.
- An effective compliance program is essential to identify, correct, and prevent FCPA violations.
- The FCPA prohibits bribing foreign officials, directly or indirectly, with the intention of influencing actions or decisions to obtain or retain business.
- The FCPA can apply to conduct anywhere in the world by U.S. or foreign companies.
- Its provisions encompass publicly traded and private organizations.
- Effective compliance programs help by encouraging a culture that won’t tolerate corruption.