The Foreign Corrupt Practice Act

The Foreign Corrupt Practice Act

The Foreign Corrupt Practice Act was an act amended in 1977 in the United States. The statute enacted to abolish and render certain unlawful quarters that paid hefty payments to officials in the foreign government to retain and obtain businesses. The provisions under the FCPA have strictly prohibited the use of any interstate commerce effective means, which assist in making illegal payments, payment promises, valuable gifting of foreign government officials, and the authorization of cash payments. Companies choose to engage in bribes hasten their service delivery at the offices. The bribes as well help them a great deal in ensuring that their businesses have no negative external influences.

Governments in the world have very lucrative tenders and contracts that grant to the highest bidder. These contracts tend to reap billions of dollars, the sole reason as to why companies and individuals fight for them. To obtain these contracts, executives from big companies unlawfully pay and bribe FCPA officials to secure the contracts. A classic example of such was a bribe attempt by a Chinese company that wanted to obtain direct licenses while conducting businesses in the US. The company executives were, however, charged and barred from traveling to the country again.

It has, however, become pretty difficult to differentiate between a bribe and an incentive. Many people have justified themselves by claiming that tokens of appreciation and gifts mistake as bribes. For instance, the Chinese company executives offered trips and entertainment to FCPA officials in a bid to obtain the contracts. They sanitized the act and claimed that they were doing it out of goodwill to public civil servants who served them well.

In summation, the FCPA has been keen on relaying a level platform for everybody to transact their businesses legally. The FCPA provisions have reduced the rate at which multinational companies were offering bribes and unlawful payments to obtain businesses and even retain others. The FCPA has hence set precedence in other states to curb corruption.

The Foreign Corrupt Practice Act was an act amended in 1977 in the United States. The statute enacted to abolish and render certain unlawful quarters that paid hefty payments to officials in the foreign government to retain and obtain businesses. The provisions under the FCPA have strictly prohibited the use of any interstate commerce effective means, which assist in making illegal payments, payment promises, valuable gifting of foreign government officials, and the authorization of cash payments. Companies choose to engage in bribes hasten their service delivery at the offices. The bribes as well help them a great deal in ensuring that their businesses have no negative external influences.

Governments in the world have very lucrative tenders and contracts that grant to the highest bidder. These contracts tend to reap billions of dollars, the sole reason as to why companies and individuals fight for them. To obtain these contracts, executives from big companies unlawfully pay and bribe FCPA officials to secure the contracts. A classic example of such was a bribe attempt by a Chinese company that wanted to obtain direct licenses while conducting businesses in the US. The company executives were, however, charged and barred from traveling to the country again.

It has, however, become pretty difficult to differentiate between a bribe and an incentive. Many people have justified themselves by claiming that tokens of appreciation and gifts mistake as bribes. For instance, the Chinese company executives offered trips and entertainment to FCPA officials in a bid to obtain the contracts. They sanitized the act and claimed that they were doing it out of goodwill to public civil servants who served them well.

In summation, the FCPA has been keen on relaying a level platform for everybody to transact their businesses legally. The FCPA provisions have reduced the rate at which multinational companies were offering bribes and unlawful payments to obtain businesses and even retain others. The FCPA has hence set precedence in other states to curb corruption.