Case Scenario: Focus on Ethics
Is it a gift or a bribe? U.S. businesses operating internationally often face this question. In addition to the Fair Practices Corruption Act (FPCA) of 1977 and the International Anti-Bribery and Fair Competition Act of 1998, there are a numter of international laws designed to fight Corruption and bribery in the global business Community. In some cases. in clear whether or not an exchange of money Or goods is a gift or a bribe. In other cases, its not, at all clear. For example. consider American Rice case in which the defendants won a judgement based on the argument that the payments made to Haitian customs officials were within the guidelines because they were made to "assist in retaining or obtaining business." This judgment has since been reversed by the 5th it Court of Appeals, and American Rice officials were scheduled for in Houston in late 2004. Visit
www.sec.gov/litigation/complaints/comp17651.htm.
read the original complaint filed by the SEC, and respond to the following questions.
Question 1. What do you think about this case?
Question 2. Do you feel that companies should be allowed to bribe officials to gain business if it is a common practice in the country or region?
Question 3. What should be done to the companies and executives convicted of bribery? Fines? Jail?