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| Tekijä: | Darrough, M.N. |
| Otsikko: | The FCPA and the OECD convention: some lessons from the U.S. experience |
| Lehti: | Journal of Business Ethics
2010 : MAY, VOL. 93:2, p. 255-276 |
| Asiasana: | business ethics USA social responsibility bribery companies international business corporate governance management control cartels corruption |
| Kieli: | eng |
| Tiivistelmä: | Although corruption exists everywhere, attitudes toward it differ by country. Until the 1997 OECD Convention, the U.S. had been one of the two countries with an explicit extraterritorial anti-bribery law, the 1977 Foreign Corrupt Practices Act (FCPA). It employs a two-pronged way of controlling the supply side of corruption: anti-bribery provisions; and accounting (books, record and internal controls) provisions. I provide evidence, albeit indirect, to prove the FCPA's limited success. The OECD Convention also has the two-pronged approach, but, since its multilaterality, it's likely to succeed better provided a vigorous enough enforcement. The signatory nations effectively form a cartel to lower the cost of doing business. However, each multinational corporation has an incentive to deviate, as is always the case with cartels. Thus, the agreement's mutual enforcement is essential for its success. However, the two-pronged approach is not enough, since internal control does not sufficiently monitor top-level decisions. The two lessons drawn from the U.S. experience are: law enforcement has to be credible and internal controls alone are not enough. Stronger and more effective corporate governance within an appropriate regulatory framework is required to make sure that multinational corporations behave in an ethical manner. |
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