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Foreign Corrupt Practice Act

In: Business and Management

Submitted By bboy
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Introduction
Team D’s assignment for week 6 was to read four articles and discuss the impact on business of meeting the Foreign Corrupt Practice Act (FCPA). As will be discovered from the discussion that ensues, businesses are having difficulties meeting the provisions of the Act. These difficulties are not always under the corporation’s complete control, yet they are issues that the corporations must contend with if they are to comply with the Foreign Corrupt Practice Act. In today’s growing global economy it is important for corporations to not only accept the FCPA, but embrace it and set a standard that can thrive towards successful objectives.

Supplier Codes Can Help Handle Third-Party Risks
In reviewing the article “Supplier Codes Can Help Handle Third-Party Risks” by Susan Kavanagh I discovered one problem that companies have meeting the Foreign Corrupt Practice Act (FCPA). Recent cases show that although corporations are investing more time and money into their ethics and compliance programs, they have not extended the same effort to abate third-party risks (Kavanagh, 2010). The article goes on to say that a corporation may have an outstanding program to meet the standards of the FCPA; however corporations are not passing the same standards of adherence down to their suppliers or third-party partners. Compliance across the board is mandatory to meet the FCPA. This includes the corporate level as well as the supply chain to make the final product. The biggest issue that corporations have is instilling the same values to third-parties. Furthermore is the enforcement of these values on the third-parties. In some cases the third-parties may have a compliance plan in place, in which case it may be comparable with the corporations plan. If this is the case, then it should be accepted by the corporation as adequate. If a third-party does not…...

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