Business and international bribery Research Paper

Business and international bribery - Research Paper Example An example of a business that was subjected to a legal prosecution is Weatherford International Ltd. From 2004 to 2011, as a multinational organization, Weatherford International Ltd indulged with internal controls violations. Though Weatherford International Ltd operated in Angola and Iraq, court documents did not make specifications on the country wherein the vice took place. Weatherford International Ltd. Among many things did not: institute effective internal accounting controls; have a committed compliance officer; conduct anti-corruption training; and create a system for investigating ethics violations reports. Weatherford International Ltd. Employees also bribed a foreign official to see a renewal of a contract go through. In the case, U.S. v. Weatherford International Ltd., Weatherford International Ltd. was made to pay a penalty of USD 87,178,256. The case gave rise to the case law U.S. v. Weatherford International Ltd., No. 13-cr-733 (S.D. Tex. 2013) (Baughn, 19 & Pacini, 5 45). According to Lane and Simpson, There are indicators that attest to the adding power of the FCPA Act and the legal proscription of bribery by US multinationals. One of the values that the FCPA Act brings is its ability to rein in corruption and to protect meritocratic capitalism. The crux of the matter herein is that corruption [which bribery is a form of] undermines meritocratic capitalism by un-evening the playing field; subverting proper and legitimate functions of institutions; and encouraging or furthering the misallocation of economic resources. Again, according to the World Bank, corruption slows down the rate of an affected country by 0.5% to 1% annually and increases a marginal tax rate and clumps positive effects on inward investment (Lane and Simpson, 40). An example of an organization that has found corporate bribery in foreign land expediency is Siemens. In 2008, Siemens had to pay 1.6 billion USD as legal settlement to European and American