Weekly Team Reflection wk6

1. Running head: LEARNING TEAM WEEKLY REFLECTION 1
Learning Team Weekly Reflection
Wilson Galarza, Glenda Jones, Krystal Parker, Denise Rogers
LAW531 WK6
January 24, 2013
Yolanda Nimmer-Williams

2. Running head: LEARNING TEAM WEEKLY REFLECTION 2
Learning Team Weekly Reflection
Team-A reflected on legal issues in international and domestic business and how it
relates to the Foreign Corrupt Practices Act (FCPA). According to Cheeseman (2010), the
Foreign Corrupt Practices Act is a federal law that was enacted in 1977 which prohibits
companies from paying bribes to foreign government officials and political figures for the
purpose of obtaining business. Issuers, domestic concerns, and foreign nationals and businesses
are the three types of entities prohibited from making improper payments. Below, Team-A
outlines the compliance issues faced in the articles as they associate with the Foreign Corrupt
Practices Act.
Foreign Corrupt Practices Act
Globalization has changed the way companies conducts business by shifting policy and
procedure into place to accommodate its international clientele. The United States businesses and
corporations relay on the business brought in from its international customers to grow their
businesses. The United States has created laws that protect consumers and society from
malpractices and unlawful business practices. The Foreign Corrupt Practices Act (FCPA)
enacted in 1977 as a result of securities exchange commission known as (SEC). The Sec and the
department of justice launched several proactive investigations on several businesses outside and
within United States participating in bribing government officials, political parties, and other
business. The FCPA impacted companies and businesses within the United States and how they
develop new ideas and ways to conduct business. Many corporations were non-compliant to the
guidelines of the (FCPA), therefore these institutions faced criminal charges, fines, and other
civil penalties for their infractions. In addition, the SEC is accountable for civil matters, whereas

3. Running head: LEARNING TEAM WEEKLY REFLECTION 3
the Department of Justice seeks only criminal matters. These two entities collaborate and work
as a team to catch violators. The actions of the securities exchange commission (SEC), and the
department of justice (DOJ), allows companies to developed new policy and programs to help
with (FCPA) violations. Corporations and companies in the United States are at a disadvantage
in competing with international companies who continuously bribe foreign officials. From 1960
to the present the United States and 33 countries from worldwide joined the Organization of
Economic Convention and Development. To help discourage briberies, corruption, and business
malpractices inside and outside the United States the Department of Justice and SEC enforce
(FCPA) laws and violations. Businesses must be attentive to internal and external business
activity daily, including overseas activities; therefore it is necessary for corporations and small
businesses to comply with (FCPA) regulations. The Department of Justice requires directors or
chief executive officer to review the compliance program and emphasizes to conduct business in
an honest way as well to comply with (FCPA) of the Unites States. Therefore, it is essential to
have certain programs and compliances in place to minimize risk or violation of laws.
Domestic business
Team A, discussed from the article small U.S. businesses face bigger risks abroad. Team
A, learned that many family-owned small businesses were outsourcing from the United States
ran a higher risk of loss. The company losses will vary from liability lawsuits, theft of property,
fraud, and piracy. In addition, small businesses did not have the resources to be in compliance
with FCPA and lawsuits, therefore small businesses were forced to close or go bankrupt. As
small businesses and corporations in the United States begin to expand globally, small business
had a hard time competing with corporations causing a market of free enterprise refer to as
capitalism.

4. Running head: LEARNING TEAM WEEKLY REFLECTION 4
References
Aguilar, M.(2011). Anticorruption Trends: What You Should Expect in 2011 Compliance Week,
8(87), 11-12.
Aguilar, M. (2010). FCPA Compliance: Latest, Best Practices for Boards. Compliance Week,
7(80), 53-59.
Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business
Ethics, and International Issues (7th ed.). : Pearson Education.
Internal Fraud Likely to Rise In Wake of Economic Crisis. (2009). Treasury & Risk, 10.
McDonald, C. (2008). Small U.S. Businesses Face Bigger Risks Abroad. National Underwriter /
P&C, 112(17), 10.
Organization economic convention development. (n.d.). Members and Partners.
Retrieved from http://www.oecd.org/about/membersandpartners/
U.S Securities and Exchange Commission. (2012).Spothlight on Foreign Corrupt Practices Act.
Retrieved from http://www.sec.gov/spotlight/fcpa.shtml