The Foreign Corrupt Practices Act was introduced to more effectively control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies as they pursued international growth.

Question

Quizplus · Accepted Answer

The statement correctly describes the purpose of the Foreign Corrupt Practices Act (FCPA). The FCPA was enacted in 1977 to prevent US companies from engaging in corrupt practices to obtain or retain business overseas. It prohibits companies and their executives, directors, employees, and agents from offering or giving anything of value to foreign officials, political parties, or candidates for the purpose of influencing their official actions, obtaining or retaining business, or securing any improper advantage. It also requires companies to maintain accurate books and records and to implement adequate internal controls to prevent bribery and corruption.

The Foreign Corrupt Practices Act Was Introduced to More Effectively