Ethics 6 - Bus 315-004 Feb. 18, 2011 Ethical dilemma #6...

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Bus 315-004 Feb. 18, 2011 Ethical dilemma #6 Note: This is a collection of excerpts from a magazine article. The entire article can be accessed online and it is very interesting. (http://www.china-briefing.com/news/2010/10/14/u-s-business-china-and-the-foreign-corrupt- practices-act.html) U.S. Business, China and the Foreign Corrupt Practices Act Oct. 14 – In this article, we examine in detail the Foreign Corrupt Practices Act (FCPA) of 1977, an act all U.S. businesses operating in China need to be very familiar with now that greater attention to the issues is being paid by the SEC. The FCPA prohibits the “corrupt” payment of money or bribes to foreign officials for the purpose of keeping or maintaining business. The FCPA also links in with several other U.S. acts, providing for federal prosecution of violations of state commercial bribery statutes. The FCPA requires U.S. listed companies to meet their accounting provisions, which are designed to operate in parallel with the anti-bribery provisions of the FCPA and require corporations to make and keep books and records that accurately and fairly reflect the transactions of the corporation and to devise and maintain an adequate system of internal accounting controls. The basic requirements of the FCPA are fairly straightforward. Rather, it is the cultural traditions and the common business practices that lend a layer of complexity to enforcement of the FCPA with respect to business done in the People’s Republic of China. This includes issues over guanxi (system of personalized relationships dominant in Chinese business)
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This note was uploaded on 04/08/2011 for the course BUS 315 taught by Professor Powell during the Spring '11 term at University of Hawaii, Manoa.

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Ethics 6 - Bus 315-004 Feb. 18, 2011 Ethical dilemma #6...

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