Chapter 4: Chapter 4:

Ethics andEthics andBusiness Decision MakingBusiness Decision Making

Chapter 4: Chapter 4:

Ethics andEthics andBusiness Decision MakingBusiness Decision Making

Criminal Criminal • Benschop, a heavy equipment operator, was reportedly

operating the crane when a wall collapsed onto a Salvation Army thrift store Wednesday, killing six and injuring 14. The wall was part of a building scheduled to be torn down.

• Benschop faces six counts of involuntary manslaughter and 13 counts of recklessly endangering another person. Benschop turned himself in Saturday.

• a blood test found evidence of marijuana and a prescription pain in Benschop

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Foreign Corrupt Practices Act.Foreign Corrupt Practices Act.

In 1998 the United States Congress and 33 other countries acted against the bribery of foreign governmental officials in an attempt to reduce corruption and money laundering through the global financial system.

Federal or State Law – Court?

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• The Foreign Corrupt Practices Act prohibits companies from paying bribes to foreign government officials and political figures for the purpose of obtaining business.

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• There are two provisions to the Foreign Corrupt Practices Act. First, the anti-bribery provisions which are enforced by the Department of Justice and second, the accounting provisions which are enforced by the Securities and Exchange Commission (SEC).

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Foreign Corrupt Practices Act.Foreign Corrupt Practices Act.

• Official statistics show that 400 American firms have collectively paid $300 million in bribes to foreign governments, political parties and also directly to the accounts of government officials.

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Foreign Corrupt Practices Act Foreign Corrupt Practices Act

Bribery by Foreign Companies.Penalties for Violations: companies up to $2

million in fines, individuals up to $100,000, and up to 5 years in prison.

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January 2014January 2014

• Alcoa World Alumina agreed to plead guilty to one count of violating the Foreign Corrupt Practices Act and pay $223 million in five installments over four years, the Department of Justice said.

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• The U.S. Securities and Exchange Commission and the U.S. Department of Justice announced separate settlements on Thursday morning.

• The SEC said Alcoa's subsidiaries repeatedly bribed officials to retain the right to supply a government-controlled aluminum producer, Aluminium Bahrain, or Alba.

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• The US DOJ and the SEC are currently investigating whether Hewlett Packard executives paid about $10.9 million in bribery money between 2004 and 2006 to the Prosecutor General of Russia "to win a million-dollar contract to supply computer equipment throughout Russia.

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• Regarding payments to foreign officials, the act draws a distinction between bribery and facilitation or "grease payments", which may be permissible under the FCPA but may still violate local laws.

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• The primary distinction is that grease payments are made to an official to expedite his performance of the duties he is already bound to perform.

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Walmart CEO Michael Duke's $35 million salary, when converted Duke makes $16,826.92 an hour. By comparison, new Walmart employees are paid $8.75 an hour and gross $13,650 a year.

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• American CEOs in 2013 earned an average of $11.7 million–

• 331 times the average worker’s $35,293.

• 2009 - 181 times in 2009.

• Ethical?

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