Becoming the subject of a bribery investigation can lead to extraordinary reputational damage and enormous cost. Boards are, as a result, increasingly devoting attention to detecting bribery and creating an environment in which such behavior is discouraged. Since 1977, the Foreign Corrupt Practices Act (FCPA) has made it illegal for a U.S. company to bribe a foreign official to violate local law in order to obtain or maintain business or to secure an improper advantage. It also prohibits false accounting for payments (for example, entering a bribe on the books as a “consulting fee”). Note that it is not illegal to bribe a foreign official to do a ministerial act that is not in violation of local law (for example, bribing a corrupt foreign government clerk to actually issue the construction permits to which a company is lawfully entitled). While originally enforcing the FCPA only tepidly, Department of Justice action has been vigorous since the late 1990s.

Question 

Is the Foreign Corrupt Practices Act needed? Explain.