What Was the Purpose of the Foreign Corrupt Practices Act of 1977? Search online, and Provide a Circumstance in Which It Has Been Alleged That the Act Was Violated. How Has This Legislation Impacted Companies Outside the Us?

What was the purpose of the Foreign Corrupt Practices Act of 1977? Search online, and provide a circumstance in which it has been alleged that the Act was violated. How has this legislation impacted companies outside the US?

Answer:

What was the purpose of the Foreign Corrupt Practices Act of 1977?

The FCPA makes it illegal for employees of U.S. corporations to induce foreign officials, by offering monetary or other payments, to use their influence to gain an unfair competitive advantage for the organization. However, “gift giving” is a common practice in many parts of the world. HRM training for expatriates should include an ethical component dealing with cultural differences that could result in an infraction of the FCPA. The training should make it clear to the expatriate what gifts are acceptable and what might be considered a bribe.

Search online, and provide a circumstance in which it has been alleged that the Act was violated.

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 51283 / March 1, 2005

Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934 and Commission Statement on potential Exchange Act Section 10(b) and Section 14(a) liability

Today, the Commission filed a settled federal court enforcement action against The Titan Corporation (“Titan”), a military intelligence and communications solutions provider. The Commission’s complaint alleged that Titan violated the Foreign Corrupt Practices Act of 1977 (“FCPA”) by paying over $3.5 million to its agent in Benin, Africa approximately $2 million of which was funneled toward the election campaign of Benin’s incumbent President at the direction of at least one former senior Titan officer based in the United States. According to the complaint, Titan made these payments to assist the company in its development of a telecommunications project in Benin and to obtain the Benin government’s consent to an increase in the percentage of Titan’s project management fees for that project.

On September 15, 2003, Titan became a party to a merger agreement (the “Merger Agreement”), in which Lockheed Martin Corporation (“Lockheed”) agreed to acquire Titan, pending certain contingencies. Titan affirmatively represented in the Merger Agreement that:

To the knowledge of the Company, neither Company nor any of its Subsidiaries, nor any director, officer, agent or employee of the Company or any of its Subsidiaries, has … taken any action which would cause the Company or any of its Subsidiaries to be in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable law of similar effect. (“FCPA Representation.”)

The FCPA Representation