DSST Business Ethics and Society-Study Guide 2

Establish separate but dependent responsibilities and

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establish "separate but dependent responsibilities and rights" for employers and employees for the achievement of better safety and health conditions; maintain a reporting and recordkeeping system to monitor job-related injuries and illnesses; establish training programs to increase the number and competence of occupational safety and health personnel; develop mandatory job safety and health standards and enforce them effectively Foreign Corrupt Practices Act of 1977 (FCPA) - Prohibits any person or firm in the US from making a corrupt payment to a foreign official to obtain or keep business. Under FCPA, bribes to foreign officials are illegal even while doing business in a foreign country, American businesses are subject to American anti-corruption and anti-terrorism laws. One of the most common mistakes made by American businesses operating internationally is following the local custom of paying under the table bribes. Persons subject to the FCPA Issuers – Includes any U.S. or foreign corporation that has a class of securities registered, or that is required to file reports under the Securities and Exchange Act of 1934 Domestic concerns – Refers to any individual who is a citizen, national, or resident of US and any corporation and other business entity organized under the laws of the US or having its principal place of business in the US Any person – covers both enterprises and individuals History of FCPA As a result of U.S. Securities and Exchange Commission investigations in the mid-1970s, over 400 U.S. companies admitted making questionable or illegal payments in excess of $300 million to foreign government officials, politicians, and political parties. The abuses ran the gamut from bribery of high foreign officials to secure favorable action by a foreign government to so-called facilitating payments that were made to ensure that government functionaries discharged certain ministerial or clerical duties. Example : Lockheed bribery scandals, in which officials of Lockheed paid foreign officials to favor their company's products. Congress enacted the FCPA to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business system. The anti-bribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. Since 1998, they also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States.
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Regarding payments to foreign officials, the act draws a distinction between bribery and facilitation or "grease payments", which may be permissible under the FCPA but may still violate local laws. The primary distinction is that grease payments are made to an official to expedite his performance of the duties he is already bound to perform. Payments to foreign officials may be legal under the FCPA if the payments are permitted under the
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