International Corporate Corruption: Why the Foreign Corrupt Practices Act Is Not Enough to Stop Widespread Usage of Shaving Cream Pies

By Pristash, Allison L. | Suffolk Transnational Law Review, Winter 2013 | Go to article overview

International Corporate Corruption: Why the Foreign Corrupt Practices Act Is Not Enough to Stop Widespread Usage of Shaving Cream Pies


Pristash, Allison L., Suffolk Transnational Law Review


I. INTRODUCTION

After following the escalating News Corporation (News Corp.) scandal for several months, the world watched as a shaving cream pie was hurled at Rupert Murdoch during his testimony in a Westminster hearing conducted by British lawmakers. (1) Murdoch's wife and others leapt to his defense but the comedic effect of a pie in the face could not outweigh the tension in the courtroom caused by the underlying problem, namely, the CEO's lack of knowledge, or acknowledgement, of the deception and foul play within his own organization. (2) In addition to the charges pending in the United Kingdom, News Corp. is facing an investigation in the United States under the Foreign Corrupt Practices Act of 1977. (3) Though these charges focus on similar practices to those being investigated in the United Kingdom, there is not one common agency that could cover both investigations, or impose harsher penalties for the widespread practices within the corporation. (4)

This Note addresses the problems that occur as a result of corporate corruption in the absence of an international remedy, and argues for a global solution. (5) It begins by chronicling the development of corporate bribery and corruption, both in the United States and around the world, that created the situation business communities face today. (6) Next, this Note describes action taken to stop these practices by examining the Foreign Corrupt Practices Act of 1977 and its international counterparts. (7) This Note analyzes the inadequacies of the existing laws and calls for an overarching regulatory scheme to curb these corporate practices. (8) Finally, this Note argues that corruption and bribery will continue to exist as a widespread practice without an effective international mechanism to combat them, which calls into question the stability of the international economy. (9)

II. DEFINING CORRUPTION WITHIN THE CORPORATE CONTEXT

In order to be successful, the response to corruption must begin with how it is defined. (10) At its most basic, corruption deals with the abuse of power for personal and private benefit. (11) In a corporate setting, the focus moves to the bribery of foreign officials by representatives of a corporation, either to open doors or close mouths. (12) An important component of bribery in this framework is that payments are made with the intention of influencing the official receiving the bribe to act in a way that he otherwise would not act. (13)

In order to gain a competitive edge, or even just to be able to compete on an international level, corporations engage in illegal activity by making illicit payments to officials in the countries in which they wish to do business and disguising them in their corporate accounting records. (14) There are several classifications regarding the recipients of corporate payoffs. (15) By focusing on the exchange of power between these participants, governments and other interested groups can gain information about these corporate transactions. (16) Watching items of value change hands is also a tangible way for interested parties to monitor corruption. (17)

A. Tracking the Development in Modern Corporate Society

It is difficult to quantify exactly how many instances of corporate corruption take place around the world at any given time. (18) In some places, corruption is so prevalent and acceptable that it is included in the country's tax code. (19) In spite of that difficulty, however, there are several technical mechanisms in place to attempt to quantify it. (20) Monitoring the public and legal scandals related to corporate corruption gauges the prevalence of corruption in society. (21) The recent cases seem to be bigger and more egregious than instances of corruption from the past. (22) If corruption is a commonplace occurrence that does not shock the public conscience, corporations will continue the practice without hesitation. (23)

B. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

International Corporate Corruption: Why the Foreign Corrupt Practices Act Is Not Enough to Stop Widespread Usage of Shaving Cream Pies
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.