The following is the minimum review of topics that will be covered by the exam. Ch. 6
What are the most important regulations covered under the Foreign Corrupt Practices Act -The fcpa is a legislation introduced to control bribery and other less-obvious forms of payment to foreign officials and politicians by American publicly traded companies - Disclosure the fcpa requires corporations to fully disclose any and all transactions conducted with foreign officials and politicians - Prohibition the fcpa incorporated the wording of the bank secrecy act and the mail fraud act to prohibit the movement of funds overseas for the express purpose of conducting a fraudulent scheme -facilitation payments-payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action -routine governmental action- any regular administrative process or procedure, excluding any action taken by a foreign official in the decision to award new or continuing business What is a routine governmental action?- see above definition but examples are: providing permits, licenses, or other official documents to qualify a person to do business in a foreign country -processing governmental papers such as visas and work orders -providing police protection, mail pickup and delivery, or scheduling inspections associated with contract performance or inspections related to transit of goods across a country - Providing phone service, power, and water supply; loading and unloading cargo; or protecting perishable products or commodities from deterioration -performing actions of a similar nature
The key distinction in identifying bribes was the exclusion of any action taken by a foreign official in the decision to award new or continuing business. Such decisions being the primary target of most questionable payments were not deemed to be routine governmental action How many principles are in the Defense Industry Initiative, what are they?6 * Each company will have and adhere to a written code of business ethics and conduct * The company’s code will establish the high values expected of its employees and the standards by which they must judge their own conduct and that of their organization; each company will train its employees concerning their personal responsibilities under the code * Each company will create a free and open atmosphere that allows and encourages employees to report violations of its code to the company without fear of retribution for such reporting * Each company will have the obligation to self-govern by monitoring compliance with federal procurement laws and adopting procedures for voluntary disclosure of violations of federal procurement laws and corrective actions taken * Each company will have the responsibility to each of the other companies in the industry to live by standards of conduct that preserve the integrity of the defense industry * Each company must have public accountability for its commitment to these principles What are the most important regulations covered under the Federal Sentencing Guidelines for Organizations? Federal sentencing guidelines for organizations hold business liable for the criminal acts of their employees and agents, important regs are the culpability score meaning the calculation of a degree of blame or guilt that is used as a multiplier of up to four times the base fine. The culpability score can be adjusted according to aggravating or mitigating factors Aggravating factors-
-high-level personnel were involved in or tolerated the criminal activity -the organization willfully obstructed justice
-the organization had a prior history of similar misconduct
-the current offense violated a judicial order, injunction or condition of probation Mitigating factors;
-the organization had an effective program to prevent and detect violations of law -the organization self-reported the offense to appropriate governmental...