skip navigation

PUBLICATIONS

Register for Latest Research

Stay Informed
Register with NCJRS to receive NCJRS's biweekly e-newsletter JUSTINFO and additional periodic emails from NCJRS and the NCJRS federal sponsors that highlight the latest research published or sponsored by the Office of Justice Programs.

NCJRS Abstract

The document referenced below is part of the NCJRS Virtual Library collection. To conduct further searches of the collection, visit the Virtual Library. See the Obtain Documents page for direction on how to access resources online, via mail, through interlibrary loans, or in a local library.

 

NCJ Number: 65234 Find in a Library
Title: FCPA'S (FOREIGN CORRUPT PRACTICES ACT OF 1977) IMPACT ON DIRECTORS
Journal: FINANCIAL EXECUTIVE  Volume:48  Issue:2  Dated:(FEBRUARY 1980)  Pages:50,52-55
Author(s): D S VANRIPER
Corporate Author: Financial Executives Institute
United States of America
Date Published: 1980
Page Count: 5
Sponsoring Agency: Financial Executives Institute
New York, NY 10017
Format: Article
Language: English
Country: United States of America
Annotation: THE FOREIGN CORRUPT PRACTICES ACT (FCPA) OF 1977, AIMED AT ENDING FOREIGN BRIBERY BY U.S. COMPANIES, HAS CHARGED CORPORATE DIRECTORS AND OFFICERS WITH INCREASED LEGAL RESPONSIBILITIES.
Abstract: THESE CORPORATE OFFICIALS ARE SUBJECT TO A MAXIMUM 5-YEAR JAIL TERM AND A $10,000 FINE IF CONVICTED OF VIOLATING THE LAW. SIMILARLY, CORPORATIONS ARE SUBJECT TO PENALTIES OF UP TO $1 MILLION. ALTHOUGH IT IS UNCLEAR WHETHER, OR UNDER WHAT CIRCUMSTANCES, FOREIGN SUBSIDIARIES OF U.S. CORPORATIONS ARE COVERED BY THE LAW, IF IT IS DETERMINED THAT THE LAW DOES APPLY TO FOREIGN SUBSIDIARIES, U.S. DIRECTORS AND OFFICERS COULD BE PROSECUTED AND CONVICTED IF THEY KNEW ABOUT OR AUTHORIZED PAYMENTS BY A FOREIGN SUBSIDIARY. THE LAW APPLIES TO ALL U.S. COMPANIES WHETHER PRIVATELY OR PUBLICLY OWNED. THE ACT HAS THREE MAJOR SUBSECTIONS: ACCOUNTING STANDARDS; FOREIGN CORRUPT PRACTICES BY ISSUERS (I.E., REGISTRANTS), AND FOREIGN CORRUPT PRACTICES BY DOMESTIC CONCERNS. THE ACCOUNTING STANDARDS ARE APPLICABLE TO EVERY ISSUER HAVING A CLASS OF SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934, AND TO EVERY ISSUER REQUIRED TO FILE REPORTS PURSUANT TO SECTION 15 (D) OF THE SAME ACT. THE ACCOUNTOMG STANDARDS DO NOT APPLY TO OTHER DOMESTIC CONERS. TO COMPLY WITH THESE PROVISIONS, ISSUERS SHOULD FORMALLY REVIEW AND TEST THEIR SYSTEM OF INTERNAL ACCOUNTING CONTROLS AND DEVISE A PROCEDURE FOR MONITORING CHANGES IN THE SYSTEM. DETAILED EXPLANATIONS AND DEFINITIONS ARE PROVIDED TO ENABLE CORPORATE MANAGEMENT TO COMPLY. A CAREFULLY PREPARED CORPORATE CODE OF CONDUCT ADOPTED BY THE BOARD OF DIRECTORS OF EACH CORPORATION SHOULD CREATE A CORPORATE ENVIRONMENT THAT ENCOURAGES INTEGRITY OF MANAGEMENT AND COMPLIANCE WITH THE LAW. OTHER CORPORATE ACTIONS SHOULD INCLUDE CHECKING UP ON FOREIGN OPERATIONS, CONFERRING WITH OUTSIDE AUDITORS, AND ENCOURAGING COMPLIANCE BY THE INTERNAL AUDIT DEPARTMENT. (PRG)
Index Term(s): Bribery; Corporate criminal liability; Graft; Kickbacks; Laws and Statutes; Legal liability; Trade practices; Unlawful compensation; White collar crime
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=65234

*A link to the full-text document is provided whenever possible. For documents not available online, a link to the publisher's website is provided. Tell us how you use the NCJRS Library and Abstracts Database - send us your feedback.