AJ 025 Lecture Notes - Lecture 29: Foreign Corrupt Practices Act

• School: College of The Sequoias
• Department: Administration of Justice (AJ)
• Course: AJ 025
• Professor: shirk

Document Summary

Management"s behaviour sets ethical tone for behaviour. Unrealistic production/sales goals increase probability of unethical behaviour. Unethical actions by owners sets precedence for employees. Managers discuss policies and ethical conduct face-to-face with employees. Courts consider presence/absence of training if accused of violation. Act was enacted to reduce corporate fraud and unethical management decisions. Requires companies to set up confidential systems for employees/others to raise red flags about suspected illegal/unethical auditing/accounting practices. Navex global = organization that communicates issues from employees to employers. Global business ethics: international cultures/religions can result in ethical conflicts. Companies use foreign suppliers due to lower wages. Usually have less ethical business standards/behaviours (low wages, long hours, unsafe conditions, child labour) The foreign corrupt practices act: prohibits u. s. business persons from bribing foreign officials to secure advantageous contracts. Common in foreign countries for side payments made to gov. for favourable contracts. Prohibits bribery of gov. officials to provide business opportunities. Allowed to pay officials with ministerial duties.