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Corporate Governance and the Foreign Corrupt Practices Act - Explained

How the FCPA Affects Corporate Governance

Written by Jason Gordon

Updated at September 25th, 2021

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Table of Contents

What is the Foreign Corrupt Practices Act (FCPA) and how does it affect corporate governance?Discussion QuestionPractice QuestionAcademic Research

What is the Foreign Corrupt Practices Act (FCPA) and how does it affect corporate governance?

The Foreign Corrupt Practices Act (FCPA) places limitations on the ability of the corporation to pay incentives or bribes to foreign governments and corporate officials to secure business advantages. The regulations place specific requirements on corporate accounting departments to account for foreign payments and on corporate directors and managers to adequately disclose those payments to regulators and shareholders. Failure to do so may result in criminal and civil penalties.

Next Article: Corporate Governance and the Sarbanes-Oxley Act Back to: CORPORATE GOVERNANCE

Related Topics

  • What are the primary state and federal corporate governance laws?
  • What is the role of the state in corporate governance?
  • What is the role of Securities Laws in corporate governance?
  • What is the role of the Foreign Corrupt Practices Act in corporate governance?
  • What is the Sarbanes-Oxley Act (SOX) effect on corporate governance?
  • Sarbanes-Oxley Act (SOX)
  • What is the Dodd-Frank Wall Street Reform and Consumer Protection Act effect on corporate governance?
  • Corporate Monitors
  • What industry organization standards affect corporate governance?
  • How do proxy advisory firms affect corporate governance?
  • What is the role of ethics in corporate governance?

Discussion Question

How do you think the FCPA affects decision making and actions by officers and directors of corporations seeking to do business internationally?

Practice Question

What are the primary corporate governance issues implicated by the Foreign Corrupt Practices Act?

Academic Research


corporate governance foreign corrupt practices act fcpa

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