In truth, corruption could also be a term for dishonesty by those in power to gain illicit gains. The Foreign Corrupt Practices Act was passed by Congress in 1977 in reaction to rising corruption cases against American public corporations traded on American stock-exchanges. Ghillyer (2012). Publicly traded corporations involved in international commerce cannot engage in dishonesty which results in them obtaining or maintaining businesses. Foreign officials are also forbidden from accepting bribes. Congress passed the law following an investigation by the Securities and Exchange Commission (SEC). (Congressional Research Service 2020). Many American companies were spending hundreds of millions of dollars to hire foreign staff in order acquire and maintain overseas business. This act also included anti-bribery and accounting provisions in an effort to curb such practices.
U.S. companies cannot pay foreign officials or give valuable business items. The accounting provisions require issuers to not hide corrupt transactions, or use corporate funds for dishonest deals and interactions. Accounting provisions require that issuers maintain accurate books and records and have adequate internal accounting controls. Companies are those who have had their securities filed or registered with the SEC.
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