Case Study Bribery Coursework Example | Topics and Well Written Essays - 500 words

Case Study Bribery - Coursework Example h companies are liable if its authorized officials commit a bribery act unlike FCPA that does not outline a strict liability offence for corporations. Under the FCPA, there must be a proof of corrupt intention, but the bribery Act is stringent since there is no requirement for improper intent as such situations constitute general bribery offence. The FCPA creates certain loopholes that make companies engage in corruption since companies are allowed to incur promotional expenses that may either be in the form of gifts, entertainment or incentives in order to secure contracts. However, the UK bribery act does not make an exemption for promotional expenses. There are various reasons why companies have continued to violate the FCPA in the recent past such as the poor prosecution abilities, the loopholes inherent in the Act and unethical corporate governance practices in the US. Some of the companies that have been charged by the Securities Exchange Commission (SEC) in the recent past for engaging in bribery include BHP Billiton, Goodyear Tire and Rubber Company, Avon Products Inc, Bruker Corporation and Hewlett-Packard. The companies have exploited the weak foreign legislation on bribery and the exemption on promotional expenses that is created by the FCPA to engage in acts of bribery. The FCPA has limited territorial reach and may fail to apply in some cases when the bribery act takes place outside the US borders. Another reason for this bribery trend is the less severe criminal penalties for bribery since prosecutors have imposed small company fines for violation and up to five years imprisonment. There are difficulties experienced in determining when a minor gift, entertainment or incentive constitutes a bribe since the anti-bribery law allows for companies to incur promotional expenses which are reasonable and bona fide expenditures related to a contract. The provision for making small gifts or incentives constitutes an important aspect of cultivating