Uncovering the Costs of Bribery

Corporate corruption has long been recognized as a global issue that victimizes honest businesses and impedes long-term social and economic development. Enacted in 1977, the U.S. Foreign Corrupt Practices Act (FCPA) prohibits U.S. organizations, companies that are listed on the U.S. capital market, and certain non-U.S. organizations that conduct business within U.S. territories from offering bribes to foreign officials to obtain or retain business. The FCPA seeks to deter corporate corruption by making foreign bribery more costly. The U.K. equivalent of the FCPA, the U.K. Bribery Act, was passed in 2010. Similar laws and regulations have also been enacted in other countries such as Brazil, Canada, and China. As enforcement of these anti-corruption laws, especially the FCPA, has dramatically intensified in recent years, it becomes imperative that organizations doing business outside their home country have a comprehensive understanding of the costs of foreign bribery.