International Management, 8e (Deresky)
Chapter 2 Managing Interdependence, Social Responsibility, and Ethics
1) In recent years, which of the following has lessened the criticisms of MNCs?
A) increasing economic differences among countries
B) greater emphasis on social responsibility by MNCs
C) limited emphasis on social responsibility and ethical behavior
D) dissolution of MNCs in developing countries
Answer: B
Diff: 2
Chapter: 2
Skill: Concept
Objective: 1
AACSB: Ethical understanding and reasoning abilities
2) Which of the following concepts includes the expectation that MNCs should be concerned
with the social and economic effects of their decisions?
A) macropolitical interdependence
B) international social responsibility
C) corporate technoglobalism
D) moral idealism
Answer: B
Diff: 1
Chapter: 2
Skill: Concept
Objective: 2
AACSB: Ethical understanding and reasoning abilities
3) Which of the following significantly increases the complexity of social responsibility and
ethical behavior of MNCs?
A) distance between the headquarters and the subsidiaries
B) difficulties posed in training managers from different cultures
C) additional stakeholders associated with the firm's activities
D) international laws, regulations, and moral principles
Answer: C
Diff: 3
Chapter: 2
Skill: Concept
Objective: 2
AACSB: Ethical understanding and reasoning abilities
1
For more information about the FCPA, visit //usdoj.gov/criminal/fraud/fcpa or
//www.investor.gov/additional-resources/general-resources/glossary/foreign-corrupt-practices-act-fcpa
The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business. The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents. Agents can include third party agents, consultants, distributors, joint-venture partners, and others.
The FCPA also requires issuers to maintain accurate books and records and have a system of internal controls sufficient to, among other things, provide reasonable assurances that transactions are executed and assets are accessed and accounted for in accordance with management's authorization.
The sanctions for FCPA violations can be significant. The SEC may bring civil enforcement actions against issuers and their officers, directors, employees, stockholders, and agents for violations of the anti-bribery or accounting provisions of the FCPA. Companies and individuals that have committed violations of the FCPA may have to disgorge their ill-gotten gains plus pay prejudgment interest and substantial civil penalties. Companies may also be subject to oversight by an independent consultant.
The SEC and the Department of Justice are jointly responsible for enforcing the FCPA. The SEC's Enforcement Division has created a specialized unit to further enhance its enforcement of the FCPA.
Summaries of FCPA cases
FCPA enforcement continues to be a high priority area for the SEC's enforcement program.
View the complete history of SEC enforcement actions against FCPA violators…
Investor Bulletins
The SEC issued an investor bulletin detailing the FCPA's prohibitions.
The SEC also issued an investor bulletin about American Depositary Receipts ("ADRs").
Speeches
Reflections on the Past, Present, and Future of the SEC's Enforcement of the Foreign Corrupt Practices Act
Nov. 9, 2017
ACI’s 32nd FCPA Conference Keynote Address
Nov. 17, 2015
Remarks at 31st International Conference on the Foreign Corrupt Practices Act
Nov. 19, 2014
Keynote Address at the International Conference on the Foreign Corrupt Practices Act
Nov. 19, 2013