Ethics and the Foreign Corrupt Practices Act

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Scenario:You are the owner of a small business that imports clothing from Brazil to the U.S. One of your senior executives, Sam, just returned from a trip to check in on the company’s manufacturers in Brazil, and Sam informs you that he was forced to make payments to several Brazilian officials in order to ensure that a recent shipment made its way through customs quickly. You are concerned about the payments, about precedent, and about the possible ethical and legal implications of such payments. Sam has assured you that the payments to these officials were “necessary” and “acceptable” within Brazil, but you remain unconvinced and are especially troubled by the ethical consequences of such payments; especially since these are prohibited under the U.S. Foreign Corrupt Practices Act.

After reading The Foreign Corrupt Practices Act in Chapter 2 of your text and the supplemental Ethics PowerPoint presentation, discuss the following:

  • Should you be concerned about the payments, and if so, why?
  • After reviewing the supplemental Ethical Approaches pdf in the Learning Activities area, choose one of the ethical approaches that best explains the ethical principles behind laws prohibiting such payments to government officials,Consequential, Nonconsequential, or Virtue Ethics Theories?
  • What is your response to the situation, and why?

Just response each posted down below #1 to 3 only

Posted 1

Hello class and professor,

This will defiantly be a red flag to me, as a small business owner I’m very upset how Sam behaved with the action he committed, the payments he mad was unprofessional and somewhat of a bribe to get what he needed faster in return, it is illegal to bribe another foreign government and behaviors like tis causes my business to look unprofessional and others will not want to work with my company. I would go with a ethical approach because to me it explains that because of his actions there will be a consequence he could face. there are laws for a reason and humans should obey them.

The action I would take for this gentleman is to have my facts and proof in place, pull him into the office first see what he had to say and then give him my feedback and put him either on suspension without pay according to what he had to say and if he was truly sincere because at the end of the day humans make mistakes and we all deserve a second chance, or if he should lack of remorse I would fire him.

Reference: Hill, C., Hult, M. (2018). Global Business Today, 10th Edition. [Purdue University Global Bookshelf]. Retrieved from

Posted 2

Hello Class, for our discussion this week we are the owner of a small business in which one of the executives appears to have bribed officials to expedite shipments into Brazil. If in fact these payments were bribes, the Foreign Corrupt Practices Act would definitely see this as an illegal act. If this is a small company that is not publicly traded bookkeeping is not very strict and these payments would be hard to detect. If the payments were not really bribes but rather just to make sure that normal government functions were handled correctly and efficiently then it would be permitted (Hill & Hult, 2018,10e pg.7).

I would say that the consequentialist theory of Act Utilitarianism would best explain the reasoning behind laws prohibiting bribes. People should follow rules that create the best outcome for everyone.

My response to the situation would to determine if in fact that there was a law broken. If there was, I would fire the executive and look to redeem and retain the good name of my company. Situations such as this can ruin a small company, if word got out that you do shady business your clients may want to stay clear of you for their own sake.

Posted 3

I would be concerned about the payments that Sam the Senior Executive has made. Sam Has made a payment to Brazil to make sure his shipment has gone through customs faster, Now this could be a bribe that cannot be done in the US due to the Foreign Corrupt Practices Act, According to our reading all trades are supposed to be reported to see if any violations that were made. Sam is on the fine line, Non consequential i feel is the best theory because it explains more about bribes. Sam is only thinking about the shipment getting through and not looking at how he can jeopardize the company and his job by making this move. The First response i would have towards Sam is to make him report his transaction which in this could jeopardize his job, but also explain to him how important it is to follow the laws set into the place and how much harm it can do for the company, I would let him know that if this funny business happened again he would be fired, This is my response because i feel as if Sam doesn’t know the severity of what he has done and how much chaos it could cause.

Hill, C., Hult, M. (2018). Global Business Today, 10th Edition. [Purdue University Global Bookshelf]. Retrieved from!/4/10/64/6@0:29.7

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