1. The FCPA distinguishes between so-called facilitating payments and more serious activities. Do you think such a distinction and the related penalties for violations under the Act make sense from an ethical perspective? Use the utilitarian analysis of harms and benefits of facilitating payments to support your position.
2. SecuritiesExchangeActSection13(b)(5),15U.S.C.§78m(b)(5) prohibits any person or company from knowingly circumventing or knowingly failing to implement a system of internal accounting controls or knowingly falsifying any book, record, or account. What is the purpose of the accounting provisions in the SEC laws and FCPA? Assume the auditors of Con-way knew about the accounting for FCPA payments in the books and records of the company. Do you think the auditors would be guilty of: (1) ordinary negligence; (2) gross negligence; or (3) fraud? Explain.
3. Given that the FCPA permits facilitating payments, do you believe it is ethically appropriate for companies to deduct such payments from their income taxes? Why or why not? What about out right bribery payments? What does the law require in each instance with respect to tax deductibility?

  • CreatedDecember 30, 2014
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