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Act (FCPA). This law
was created after official
investigations revealed how much money US
companies were paying in bribes to governments and
officials in other countries. The investigation showed
that more than 400
companies doing business
internationally had paid over $300 million in bribes.
These bribes were hurting the image of the companies within the United States.
Therefore, the American government proposed the FCPA to restore integrity to
American business and confidence among American consumers.
According to the FCPA law, any US business caught paying bribes to any
official or agent of another country’s government could be punished by fines or
possible imprisonment. The fines could be up to
twice the amount of the bribe,
and imprisonment could be up to five years. But this law actually put US
businesses at a disadvantage in the global market. Companies from other
countries were still paying bribes to do business. Therefore,
the US government
worked with its major trading partners to establish an international treaty to
crack down on such unethical business practices as bribery. In 1997, thirty-four
countries signed an agreement called the Convention on
Combating Bribery of
Foreign Public Officials
in International Business Transactions.
However, there is nothing that clearly distinguishes the difference between
bribes and gifts in either the FCPA or the international Convention. But if a gift,
and especially a gift of money,
is given with the intent to induce some favorable
action, then it is probably a bribe. On the other hand, a gift is not considered a
bribe when given after the deal
is closed or service has been rendered.
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576 words
44
combating --- fighting
45
transaction --- an agreement
48
induce ---
to influence to do
50
rendered --- done; given
