Baker Hughes: Foreign Corrupt Practices Act Study Questions

1045 words - 5 pages

1. Describe the economic and social impact of bribes and other similar payments in emerging economics.
In emerging economies, bribes and other similar payments have a negative impact. Such
corruption, although appearing to provide short term growth, will not turn into long term growth. Corruption reduces the efficiencies of the operations of the market economy and a loss of direct foreign investment in countries where participation in corruption is how business is done. Politicians and government officials worldwide receive bribes valued between $20 billion and $40 billion annually. Companies that participate in bribing can face reputational damage and loss of investors. ...view middle of the document...

If a company wants to actively monitor and control corrupt practices, it must engage its employees at all levels and its board of directors to work together. Involving both the management and the board of directors in this issue facilitates accountability. If employees know that the board of directors are also paying attention and policing foreign corrupt practices, it will help deter employees from engaging in the practices.

4. Discuss the pros and cons of the two groups(independent investigators and blue-ribbon experts) used by Baker Hughes.
The pros of the independent investigators were that they were from a firm separate from
Baker Hughes, and did not provide any other legal work for the company. This allowed them to report to the board objectively. It is a pro that there is no conflict of interest because they have no other affiliation with the company aside from these investigations and therefore do not r eceive any other revenue from the company. A notable con of using the independent investigators is that they do not necessarily have extensive experience dealing with compliance/anti-corruption issues and the DOJ.

The pros of the blue-ribbon experts are that they have significant experience and a high level of integrity. The experts were familiar with the steps required to satisfy investigators from the Department of Justice. There is no notable con of using the blue-ribbon experts, at least from what I can read in the case study. However, it is probably safe to assume that hiring the blue- ribbon experts is quite costly, which is a con.

5. Discuss whether the payments outlined on pages 12 and 13 are foreign corrupt practices.
The payments outlined on pages 12 and 13 are in fact foreign corrupt practices. Although they ]
did not involve a direct attempt by the employees of Baker Hughes to pay or cover up bribes, it is the responsibility of the company to monitor agent behavior. It is not acceptable to give an agent money and assume that they will use that money in good faith and not bribe government officials. In legal terms, indirectly being involved means being an accessory, and that is...

Other Papers Like Baker Hughes: Foreign Corrupt Practices Act Study Questions

Halliburton Is Buying Baker Hughes For $34.6 Billion

760 words - 4 pages HALLIBURTON IS BUYING BAKER HUGHES FOR $34.6 BILLION 2 On Monday November 17, the Halliburton Corporation announced that they will be buying Baker Hughes for $34.6 billion dollars. The Halliburton Company is the world’s second largest oil field services and production company, specializing in delivering a wide variety of products and services ranging from exploration, development, and the production of oil and gas, to oil and gas

Ethical Issues In Management Essay

1246 words - 5 pages University of PhoenixManagers at Baker Hughes are constantly faced with moral and ethical values daily. One common ethical business issue seen in many companies is harassment. Baker Hughes is committed to maintain a positive work environment free of harassment either sexual or non-sexual (Deaton, 2005). Baker Hughes views harassment as a form of offensive treatment or behavior which to a reasonable person creates a hostile or abusive work

Cyberspace And Ethics And Issues

1539 words - 7 pages question what can and can't post on the Internet. (28, Dyson)The potential problems that can arise on the Internet due to message boards and emailing are enormous. Looking at the Baker case study, one can realize that his actions were inexcusable. There was also a definite cause for investigation. Now and days there must be action taken if a person's life could be in danger. From a deontological perspective a person with intent to kill anyone is

Sixteen Candles Review

572 words - 3 pages couples walked, the crazy lunatic bus drivers, the boring study halls, and the notes that were passed from one student to another. He knew how they conversed, how the partied, and the differences and grade levels. He demonstrates the highs and horrors and teen embarrassment, mainly in the cases of Samantha Baker and “Farmer Ted”. The film has a somewhat split-personality. At some points in the film, it is similar to the crude and silly aspects

Ted Hughes Conflicting Perspectives

1105 words - 5 pages relationship or even is made clear in the study of the relationship between Ted Hughes and Sylvia Plath. In examining the relationship through their poetic works as well as an outside perspective in the form of Christine Jeffs' 2003 film 'Sylvia', the fact that objective, singular truth does not exist is elucidated. Hughes' 'Birthday Letters' are the summation of a thirty-five year silence by Hughes on the subject of his wife Sylvia Plath who suicided on

Baker Hughes

4233 words - 17 pages website at www.bakerhughes.com/investor. (2) Charge of $315 million before-tax ($220 million after-tax), the majority of which relates to the noncash impairment associated with the decision to minimize the use of the BJ Services trade name as part of our overall branding strategy for Baker Hughes. (3) Noncash tax benefit of $214 million associated with the reorganization of certain foreign subsidiaries. (4) Loss of $40 million before-tax ($26

Interrelationship of Leadership Traits, Behavior, and Subsequent Performance of the Leader

1106 words - 5 pages Traits: Traits refer to recurring regularities or trends in a person’s behavior (Hughes, Ginnette, & Curphy, 2002, p. 168). Exhibiting leadership traits is strongly correlated with people’s desire to follow the leader. Exhibiting these traits will inspire confidence in one’s leadership. Personality traits are useful for explaining why people act fairly consistently in different situations. Knowing differences in personality traits can help

Accounting Repsonabity

542 words - 3 pages EDITION: Current Trends in International Trade and Their Impact on Multinational Business: ARTICLE: From Legalized Business Ethics to International Trade Regulation: The Role of the Foreign Corrupt Practices Act and Other Transnational Anti-Bribery Regulations in Fighting Corruption in International Trade. Mercer Law Review, 65701. I will use this reference to discuss the regulations of the Foreign Corrupt Practices Act of 1977 and how they were

Business

1116 words - 5 pages . Sociocultural: religion,manners, social structures, customs, values, attitudes, language and personal communication. 2. Economic: Exchange rate, devaluation of currency, countertrading. 3. Legal and Regulatory: corruption, Foreign Corrupt Practices Act of 1978 = prohibits questionable or dubious payments to foreign officials to secure business, OECD = fight corruption and bribery in foreign markets. 4. Physical and Environmental: transportation, storage

International Business Law Cases

313 words - 2 pages be submitted to the US Foreign corrupt practices act- places limitations on US business people prohibited from making illegal payments to foreign officials under the Foreign corrupt practices act Disaster at Bhopal case, p. 42, this case talks about union carbide it lacked control over the safety and operations on the indian plant and they claimed no responsibility because 49 percent was owned by intian government and indian government

Bus475 Business and Society Quiz 3

1150 words - 5 pages following is not an example of an ethical criterion? Answer Selected Answer: Corporate driven. Correct Answer: Corporate driven. Question 27 5 out of 5 points Correct Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates? Answer Selected Answer: The U.S. Foreign ¬Corrupt Practices Act. Correct Answer: The U.S

Related Essays

The Foreign Corrupt Practices Act Essay

667 words - 3 pages The Foreign Corrupt Practices Act The Foreign Corrupt Practices Act (FCPA) of 1977 and the corresponding amendments set forth by the Omnibus Trade and Competitiveness Act of 1988 and Amendments of 1998 have tremendous ramifications for U.S. multinational companies at large, their subsidiaries, and foreign partners.  While the main purpose of the original policy was to make it “unlawful to bribe foreign government officials to obtain or

Ethics And Foreign Corrupt Practices Act

976 words - 4 pages reclassify the “bribes” by making a parallel argument which contradicts Foreign Corrupt Practices act (Pastin & Hooker, 1988). For example, payments were often extorted from the companies; failure to make the payments might end up with inferior products being purchased; payments were in accordance with local practices. I think that the moral rules should not allow self interest – On the contrary, the case Pastin mentions promotes it

Foreign Corrup Practices Act Essay

3073 words - 13 pages This Foreign Corrupt Practices Act was established in 1977. This act is a United States federal law; it is widely known primarily for two of its main requirements. The first one called Trade Act, addresses accounting transparency requirements that were under the Act of Securities Exchange of 1934. The other one concerns bribery of foreign officials. The Trade Act intended for the

The Foreign Corrupt Policies Act Of 1977

3110 words - 13 pages , and ZIP code. If you have a foreign address, see instructions. Atlanta 1 2 Single GA 30304 4 Checking a box below will not change your tax or refund You Spouse Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund . . . . . . . . . Filing Status Check only one box. X Married filing jointly (even if only one had income) Married filing separately. Enter spouse's