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Exhibit 15.7: Excerpts from the Foreign Corrupt Practices Act and Fines

Exhibit 15.7: Excerpts from the Foreign Corrupt Practices Act and Fines

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Exhibit 15.7: Excerpts from the Foreign

Corrupt Practices Act and Fines



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.7: Excerpts from the Foreign

Corrupt Practices Act and Fines



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.7: Excerpts from the Foreign

Corrupt Practices Act and Fines



Copyright© 2005 South-Western/Thomson Learning All rights reserved



U.S. Foreign Corrupt Practices

Act (FCPA)

•• Does

Does not

not prohibit

prohibit some

some forms

forms ofof payments

payments that

that may

may

occur

occur inin international

international business

business

•• Payments

Payments made

made under

under duress

duress toto avoid

avoid injury

injury or

or

violence

violence are

are acceptable

acceptable

•• Tricky

Tricky component

component isis the

the reason-to-know

reason-to-know component

component

•• Firms

Firms are

are liable

liable for

for bribes

bribes even

even ifif bribes

bribes are

are made

made

by

by agents

agents ofof company

company

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Ethics Gap

More

More coercive

coercive and

and normative

normative pressure

pressure for

for U.S.

U.S.

businesses

businesses toto follow

follow ethical

ethical standards

standards

•• Recent

Recent evidence

evidence suggests

suggests that

that FCPA

FCPAhas

has not

not

necessarily

necessarily caused

caused U.S.

U.S. business

business toto fall

fall behind.

behind.



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Toward Transnational Ethics

Ethical

Ethical convergence:

convergence: growing

growing pressure

pressure toto follow

follow the

the

same

same rules

rules inin managing

managing ethical

ethical behavior

behavior and

and social

social

responsibility

responsibility



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Four Basic Reasons for

Ethical Convergence

1.1.The

The growth

growth ofof international

international trade

trade and

and trading

trading blocks

blocks

2.2.Increased

Increased pressures

pressures toto imitate

imitate business

business practices

practices

3.3.Varied

Varied cultural

cultural background

background employees

employees require

require common

common

standards

standards

4.4.An

An increasing

increasing number

number ofof business

business watchdogs

watchdogs



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Prescriptive Ethics

•• Suggested

Suggested guidelines

guidelines for

for the

the ethical

ethical behavior

behavior ofof

multinational

multinational companies

companies

•• Three

Three moral

moral languages

languages

•• Avoiding

Avoiding harm

harm

•• Rights/duties

Rights/duties

•• Social

Social contract

contract

•• Three

Three languages

languages work

work irrespective

irrespective ofof national

national

backgrounds

backgrounds

Copyright© 2005 South-Western/Thomson Learning All rights reserved



International Ethics Guideline

Sources

•• The

The United

United Nations

Nations Universal

Universal Declaration

Declaration ofof Human

Human

Rights

Rights

•• The

The United

United Nations

Nations Code

Code ofof Conduct

Conduct on

onTransnational

Transnational

Corporations

Corporations

•• The

The European

European Convention

Convention on

on Human

Human Rights

Rights

The

The International

International Chamber

Chamber ofof Commerce

Commerce Guidelines

Guidelines

for

for International

International Investment

Investment

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



International Ethics Guideline

Sources

•• The

The Organization

Organization for

for Economic

Economic Cooperation

Cooperation and

and

Development

Development Guidelines

Guidelines for

for Multinational

Multinational Enterprises

Enterprises

•• The

The Helsinki

Helsinki Final

FinalAct

Act

•• The

The International

International Labor

Labor Office

OfficeTripartite

Tripartite Declarations

Declarations ofof

Principles

Principles Concerning

Concerning Multinational

Multinational Enterprises

Enterprises and

and

Social

Social Policy

Policy



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 15.7: Excerpts from the Foreign Corrupt Practices Act and Fines

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