PHI 2397 Lecture 18
Business of just Bribery?
• Companies bribing foreign countries is not something new, it can be as recent as last week
o Lockheed million in Japan; Japanese prime minister forced to resign
• "In the 1970s, it was discovered that the company had paid millions of dollars to foreign officials
around the world in order to sell its planes. In one case, Kakeai Tanaja, who has been the prime
minister of Japan, was convicted of accepting bribes.
§ 'Without Lockheed, there never would have been a Foreign Corrupt Practices Act,' said Jerome
Levinson, who was the staff director of the senate subcommittee that uncovered the bribery."
o Gulf Oil to political party in South Korea
• United States created an act against bribery in foreign countries
• This was the Foreign Corrupt Practices Act (FCPA)
• Canada also decided to create a law against bribery in foreign countries
• This was the Corruption of Foreign Public Officials Act
• Both the America and Canadian laws were created to protect th e developing countries, since in
developed countries it was already illegal
§ Usually in developing countries, bribery was not illegal so the other countries had to step in so
the businesses from there could not negatively affect the developing country
§ Both acts includes, making bribes, accepting a bribe, thinking about it, and planning it
o "in 2008 Siemens [German electronics company] paid $800 million to the U.S. and Germany to settle a
bribery case. The company was later charged for paying $100 millio n in bribes."
• The bribes were done to the government of Argentina
o Walmart and Mexico currently disputing U.S. government fine for bribery
• "Officials have proposed that the world's biggest retailer pay at least $600 million to resolve probes by
the Justice Department and the Securities and Exchange Commission into whether it bribed
government officials in markets from Mexico to India and China, according to three people familiar
with the matter. The retailer has rebuffed the government's request, two of them said. Such a
settlement would rank among the largest in four decades under a U.S Law."
• Canadian company Bombardier currently charged in Sweden
Sweatshops - Nike in Vietnam - Bangladesh
• Nike Inc.
o Founded in U.S by Philip Knight, 1964
Manufacturing, Labour-intensive, in Japan, Taiwan, Korea, Vietnam, Thailand, China, Indonesia
• Unprofitable attempts to manufacture in U.S
• It seems like there were many laws that they had to follow in the U.S. so it was more profitable for
them to go overseas
o "currently, Nike is the largest athletic shoe company in the world."
Allegations of child labour, exploitative wages, "sweatshops"
• Including Michael Moore movie "The Big One" interview with Knight
o Article reports on "subcontracted factories" in Vietnam in 1998
• Nikes sneakers then selling "for $100 or more in the American market"
• "Local superviso