THE FOREIGN CORRUPT PRACTICES ACT Essay Example | Topics and Well Written Essays - 750 words

THE FOREIGN CORRUPT PRACTICES ACT - Essay Example In 1977, congress endorsed the FCPA in response to the revealed widespread bribery where company managements resorted to falsification of company records and bribery. Through the FCPA act, the congress aimed at protecting the image of American democracy abroad while reinforcing the integrity US companies. In addition, the enactment of FCPA was aimed halting corrupt practice while restoring public confidence. The main intention of the enactment was to illegalize payments completed to foreign government officials by some persons and entities in quest of attaining or sustaining business (Koehler, 2013, p. 6). Two provisions used to attain this goal focus on anti-bribery and accounting. Through the anti-bribery provision, FCPA prohibits bribery of foreign public officials despite their position or rank. Since FCPA does not cover private-to-private bribery, a foreign public official serving in the capacity of judicial or legislative position, individuals practicing public roles on foreign land, , or an official serving in public firms. The Act also prohibits firms against issuing valuable things like money, offers, payments, promises to give, or gifts (Harris, 2011). Companies that participate in such payments are subject to FCPA liability as well as violations of anti-bribery provisions that include offers and promises, and actual gifts and payments. In addition, firms are prohibited from using intermediaries like consultants, businesses associates, and partners among others, to ‘knowingly’ make payments or portions prohibited by FCPA. For local and international companies listed in the US SEC, FCPA requires meeting bookkeeping provisions. The aim is to enhance the FCPA anti-bribery provisions to oversee that companies not only make but also maintain accurate records and books reasonably representing the company’s transactions (Cragg, 2005). Additionally, the