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The pro argument for saying the Foreign Corrupt Practices Act is obsolete is highlighted in the article Prosecute Wal-Mart, but get rid of anti-bribery law by Jeffrey Miron. In this article Jeffrey Miron argues that Foreign Corrupt Practices Act was designed with good intentions but has failed to stop corruption. Foreign Corrupt Practices Act has had a minimal impact on bribes but has allowed the least honest companies to profit. In many countries around the world bribes are a common practice in doing business. Foreign Companies are able to circumvent the law and pay off officials with minimal risk of exposure. This puts pressure on ethical American companies restricted by the FCPA to lower their standards or risk losing business. This discourages American companies from doing business overseas because of threat of prosecution under the FCPA.
The cons to the argument for saying the Foreign Corrupt Practices Act is obsolete is discussed in the article With Wal-Mart Claims, Greater Attention on a Law by Charlie Savage. In this article Charlie Savage argues that the FCPA has always been a useful tool in stopping corruption but in recent years with companies becoming more globalized other countries gradually adopted similar laws, the United States has started to enforce it more strictly. The dollar amount of fines imposed by the Justice Department and the Securities and Exchange Commission has increased even more, including a record-setting $800 million paid by Siemens in 2008. Enforcement under the act has soared, from just two enforcement actions in 2004 to 48 in 2010. There are currently at least 100 open investigations, specialists estimate.
Wal-Mart is seen as a global company, but it wasn’t until 1991 that Wal-Mart opens its fir...
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...ff. By the end of 2014 Wal-Mart will have appointed 10 market-level Chief compliance officer in its International division to build and lead the compliance teams in the company’s retail markets around the world. This effort is critical for promoting the long-term sustainability and capability of the company’s anti-corruption compliance team.
Anti-corruption remains a key focus for compliance training in all markets. Walmart’s anti-corruption training is designed to develop awareness and understanding of the relevant code of ethics for associates and agents who interact directly or indirectly with government officials on the company’s behalf. In recent years, Wal-Mart has trained more than 100,000 attendees from all levels of the company from around the world, including key senior executives and officers who interact directly or indirectly with government officials.
In 1962, Wal-Mart opened their first store in Rogers, Arkansas. In 1970, Wal-Mart's first distribution center and home office in Bentonville, Ark. open and Wal-Mart went public on the New York Stock Exchange. Just nine years from that, Wal-Mart's annual sales exceeded one billion dollars. In 1988, Wal-Mart super centers opened across the country. In a merely three years from that, Wal-Mart opened their own store in Mexico City, Mexico; making Wal-Mart an international corporation. Not even sixty years has past, and yet, Wal-Mart is over-powering our country.
Wal-mart is currently the world’s largest company. It has seen continuous growth and financial success since it was founded in 1962. Today it is living off of a previous reputation of solid ethical business practices that are no longer being exercised. Sam Walton, the founder of Wal-mart, was considered to be “freakishly cheap… Cost-cutting was an obsession in the Wal-mart culture… on business trips, everyone, including the boss, flew coach, and hotel rooms were always shared.” (reclaimdemocracy.org. 2006). This was only part of the reason for Sam Walton’s success.
Wal-Mart is the largest retailer in the U.S and it is the largest private employer in Mexico. So, Wal-Mart is the jewel of its global business empire. According to the blockbuster report in New York Times on 21 April 2012 by David Barstow, he stated that Wal-Mart involved in Foreign Corrupt Practices Act scandal. Wal-Mart didn’t successful in dominating the Mexican market as it almost certainly in violation of U.S and Mexican Law. September 2005, a former commercial real estate executive of Wal-Mart de Mexico who is Sergio Cicero (resigned in 2004) had blew the whistle on a massive bribery scheme that help in the explosive growth in the Central American country by officials to speed up permits and ignore laws. Instead of an independent outside counsel, investigation is being control by an internal Wal-Mart team.
Wal-Mart making unethical decisions concerning their employees is an unfortunate track record that can be documented. This essay has covered some viewpoints that can be a valid argument that Wal-Mart needs to change its way on how it looks at business ethics. Wal-Mart is an American icon in the retail industry and one would assume that they would lead the pack in the creation and implementation of business ethics and how they treat their employees.
Wal-Mart is now operating globally, and its main vision is for additional global expansion of operation and "promotion of ownership of ethical culture" to all of its stakeholders worldwide (www.walmartstores.com). The idea of Wal-Mart’s vision on ethical culture is key in globalization. Wal-Mart has had good reputation and competitive advantage worldwide because it has been able to embrace culture and diversity in its operations across nations. In promoting ethical culture, Wal-Mart helps its customers and stakeholders to take the right decisions and to do the right thing.
After Sam Walton got his start, he surrounded himself with people that had big and great ideas for his company. In later years the company has achieved great levels of success financially and is continuing to grow. This company has great ethical integrity. They also promote ethical education and communication on a global level. According to Sam Walton, “personal and moral integrity is one of our basic fundamentals and it has to start with each of us (http://cooperate.walmart.com/our-story/).” This was a phrase that Mr. Walton believed and he strive to prove excellent customer service through his associates.
Bribes are not legal fees. Potential bribes were not disclosed in the books as well. This violation not only involves the accountants of Wal-Mart de Mexico, but the CEO, CFO, and auditors that were supposed to make sure records are transparent, accurate, and reliable. Sarbanes Oxley also requires CEO’s and CFO’s to certify that the financial reports are correct. The United States Department of Justice encourages companies to conduct internal investigations and to disclose the relevant facts to the authorities. Any suspicion that the Foreign Corrupt Practices Act is being violated should be reported to the US DOJ, which it was not reported by Wal-Mart. According to The New York Times, Wal-Mart did approach the Justice Department, but after learning about the Times’
A common trait of corruption can be lobbying. Lobbying, is the process of trying to influence or sway the public or government policies at all levels; federal, state and local. According to the Corruption Perception Index of Transparency International (TI) (http://www.transparency.org/country/USA), America is 16th on the list of least corrupt nations, behind European nations, Canada and Australia. America is even on par with the Bahamas and Barbados in corruption! However, TI states, “from fraud and embezzlement charges to the failure to uphold ethical standards, there are multiple cases of corruption at the federal, state and local level.”
Wal-Mart is a Multinational retail company founded on July 12, 1962, in Rogers Arkansas, by Sam Walton. Wal-Mart. has over 11,000 stores in 27 other countries, and has become a house hold name. Wal-Mart has the largest company by revenues in the world. Owning over 2.2 million employees , it has the biggest private employer in the world. Wal-Mart is also the worlds most valuable company by market value. In 2009 Wal-Mart created over 51 percent of its $258 billion in the United states from their grocery department. But as wonderful as Wal-Mart claims to be with their “promising prices” , Wal-Mart has had some hidden , and irresponsible skeletons in their closets. For example how when a Wal-Mart would come into a small town with their
The most significant component of Wal-Mart’s success was the way it treated its employees or as they are known as in Wal-Mart “associates”, the beliefs or rules of the Wal-Mart culture makes associates want to provide excellent service to its customers. During visits Walton encouraged associates to pledge to greet customers and ask if they assist them or walking into a Wal-Mart store customers are met by a greeter, an associate who welcomed them and handed out shopping carts (Farhoomand, 2006).
Wal-Mart, the world 's biggest retailer, is the biggest organization and private boss in the United States. Wal-Mart is reliably recorded among America 's most respected organizations by Fortune magazine. In the meantime, it is much of the time the objective of feedback and criticism for its work practices and its impact on the bigger economy and group. With having such a strict approach, Wal-Mart faces many claims every year from unscrupulous business rehearses. Wal-Mart 's appraising as an organization that customers trust and regard has relentlessly declined in the most recent couple of years.
Bribery is wrong, and it would be almost instinctive to point at the benefits of impartially functioning public servants and incorrupt corporations to our democratic society as justification. However, in this imperfect world where bribery is rife in varying degrees, is it possible to express this notion convincingly? Certainly 'because the UK Bribery Act says so' is far less persuasive to a council planning office in Shanghai than in London, and indeed in compliance with section 7 of the Bribery Act 2010 which relates to commercial offences, it is essential that this question is engaged with on a corporate scale and without assertion through dogma. Accordingly, this essay will argue that elements wrong with bribery are inclusive of both moral and economic considerations. Moreover, in conjunction with international mandates, advent of aggressive legislation such as that of the UK Bribery Act 2010 is representative of global efforts to eliminate bribery. Hence, it follows that bribery can never be considered a normal part of business because it is economically unsustainable in the long term.
The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.
The existence of bribery and unethical behavior is rampant in the world market and may not change overnight. The question of bribery has been distilled in business literature as a question of ethics. In this situation at the airport with the customs officer, it is important to distinguish between business ethics and personal ethics. In a business ethics situation, the Foreign Corruption Practices Act would prohibit offering any bribe to the custom office – for example to free a shipment of goods that was lost in red tape (Pitman & Sanford, 2006). Most companies also have policies against bribery as well. In this situation, however the main issue at hand is that of personal ethics. When in a situation where your company is unknown and there is no business being conducted, normal business ethics and laws (including FCPA) do not apply only personal ethical standards.
“Corruption is why we win” a quote taken from an actor in the film syrianna, acknowledges the fact that Americans believe that the laws against corruption is what allows them to cheat. Corporate Americas view on Bribery was that international business couldn’t be completed without it. But the rise of strict laws and acts now enforced by the department of justice, ensured foul play wouldn’t occur. The U.S department of Justice tried tiredly to account for the wrong doings of the arms deal between the UK and Saudi but was somewhat shut out because of the lack of justice brought about in these countries homeland. The UK serious fraud office terminated their investigation against BAE, in 2006 much to the dismay of the country people who set up sites like www.Controlbae.org/ which goes into detail about the judicial review to terminate the corruption charges against BAE.