ipl-logo

Foreign Corrupt Practices Act Case Study

453 Words2 Pages

Avon Products Inc.
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 (SEC Emblem 2017). On December 17, 2014, the Securities and Exchange Commission decided to charge Avon Products Inc. with the violation of the Foreign Corrupt Practices Act. Avon Products Inc. dishonored the FCPA by doing what the FCPA says not to do, they failed to put in controls to detect and prevent gifts or payments to the Chinese government officials. Avon did this because after becoming the first company to be able to get a direct selling license in China they were trying to prevent China from fining them and also trying to prevent from having damaging articles written about them in the news. The SEC found that Avon’s subsidiary was giving travel, cash, and other offerings …show more content…

When they found it, Avon’s management decided to consult with a law firm about what they had found and decided to send out an audit team to check up on the subsidiaries in China to comply with the FCPA. It was never a thorough investigation until the CEO was sent a letter by a whistleblower that Avon decided to do a complete internal investigation in 2008. However, after the completion of the internal audit, the damage to the company had already been done. After all the evidence was found against Avon China, the company ended up pleading guilty to the charges the SEC filed against them. The charges they plead guilty to were knowingly engaging in bribery to retain all the contracts as well as violating the records requirements of the FCPA. The way the company issue was resolved was by making a payment of $135 million for the violation, Avon also has to enter a three-year agreement with the Department of Justice and retain a compliance monitor for at least 18

Show More
Related

Robert Briggs V. Proud Case Summary

910 Words | 4 Pages

v. Avon Products, Inc. Remedies for Breach of Traditional and E-Contracts are many including Specific performance. This is a remedy to breach of a contract that orders a party to perform the acts promised in the contract, it is usually awarded in cases involving unique subject matters like land, sales, paintings and heirlooms. Therefore, specific performance is a good remedy for the case on contract between Liz Claiborne and Avon products (Cheeseman, 2004). When the two companies formed the merge, the profits recorded were very high and therefore when Avon breaches the contract, Claiborne will suffer economically. Money alone cannot resolve the issue and thus, an order for Avon to perform the contractual duties as originally agreed is most effective.

Read More

Texas Tech Student Case 38-2006

923 Words | 4 Pages

While the main focus of the case is the owner, the article briefly mentions that four of the owner's employees conspired along with him, and that they all had pleaded guilty whereas the owner elected to settle the claims against him in court. After working through the language of the court case, I was

Read More

Arguments Against The Houston Indonesian Scandal

1019 Words | 5 Pages

2017 Houston Astros Scandal Allowing the Houston Astros to retain their 2017 World Series title is completely irresponsible by Major League Baseball and thus destroys the integrity of America's greatest pastime. The Houston Astros used a camera cheating system that allowed their hitters to know what pitch was coming while at the plate for the duration of the 2017 and 2018 seasons. Teams in the past who have cheated have received major punishment whereas the 2017 Houston Astros, World Series champions, did not. The Houston Astros should have their 2017 World Series title revoked. They were given an unfair advantage via their cheating system.

Read More

Interstate Commerce Commission Vs Railroads

430 Words | 2 Pages

The commission also examined railroad companies and required annual reports. With scandalous histories ranging from persuading congressmen with railroad shares to favor funding them in

Read More

Federal Trade Commission Case Study

452 Words | 2 Pages

How Effective is the Federal Trade Commission In the end of last month we saw FTC Commissioner Maureen Ohlhausen speak at a panel titled Federal Online Data Security Regulation: Where Are We Going? in which she shed some light on the agency 's approach towards enforcing data security. She stated that while the Federal Trade Commision simply doesn 't have the time to investigate every reported breach it has a remarkable 70% closure rate in prosecuting data security cases.

Read More

Mark Everson Candidacy

580 Words | 3 Pages

They claimed "the company had coached clients on improper tax workarounds that cost the agency as much as $712 million in wrongly awarded refunds"

Read More

Racketeer Influence And Corrupt Organizations Act Essay

503 Words | 3 Pages

Memorandum #2 To: Brother Packer Form: Jordon Haderlie Subject: Racketeer Influenced and Corrupt Organizations Act (RICO) I have chosen to look deeper into the Racketeer Influenced and Corrupt Organizations Act because it is something that I don’t know much about. I have always wondered how things work when this law was taken into effect and so I will be exploring the law its self and then looking at cases where it was used. (1)

Read More

Corruption In Mexico

1386 Words | 6 Pages

Corruption in Mexico Do you know what corruption means? Corruption is a dishonest or illegal behavior especially by powerful people (such as government officials or police officers). Do you know about corruption in Mexico? Corruption in Mexico is obviously nothing new, but there have been many cases that are unbelievable, but true.

Read More

Foreign Corrupt Practices Act

778 Words | 4 Pages

The Foreign Corrupt Practices Act of 1977 has been effective in finding corrupt companies and penalizing them for their wrongdoings. It worked best during the first years it was implemented because that was when bribery was occurring the most. However, it has not been effective in stopping questionable actions made by businesses internationally (Barone &Kim, 1981, p.4). I agree with this idea because if we look at statistics over the years, more companies have been found guilty of violating the FCPA now. This is partially due to the fact that companies are using the law’s vague words to defend their actions.

Read More

Income Smoothing Case Study

1491 Words | 6 Pages

This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government. At the end, Cendant had filings against them concerning their corporate governance

Read More

Nondestructive Testing (NDT)

893 Words | 4 Pages

An example of corporate responsibility involves falsifying information by FirstEnergy's Davis-Besse Power Plant personnel , revealing serious infractions and a cover up. Inspections revealed several cracks and defects in critical components. This incident resulted in FirstEnergy being “fined $5.45 million dollars, the largest single fine imposed by the NRC [U.S. Nuclear Regulatory Commission]. They would eventually pay $33.5 million in fines.” This also resulted in two employees being “fired by FirstEnergy Corporations... They would be the only two convicted of deception charges.”

Read More

Corruption In America

127 Words | 1 Pages

Although America is noticed as one of the greatest countries ever, that view is slowly starting to diminish due to corruption within our political system. Our government has lost the conservative, Biblical values on which it was founded upon and have turned to a liberal ideology. Consequently, our political and governmental system has drastically changed altered from the founding of our country. We see that throughout history, many great nations and empires have fallen due to political corruption within their nation. The founders warned that government corruption would ultimately destroy a nation.

Read More

Government Corruption In America

1464 Words | 6 Pages

Government corruption is one of the most terrifying and the biggest dilemmas that the united states has at the moment and many people are blind to it. These problems could not only hurt the united states, but it could also hurt civilian’s personally. People need to be aware that these outrageous situations such as war crimes, money perks, and also National Security Agency (NSA). These absurd situations haven’t only been going on recently, but they have actually been going on for many years. For instance, war crimes have dated back all the way till the 9/11 terror attacks.

Read More

Examples Of Corruption In The United States

1258 Words | 6 Pages

Corruption Never End! Remember as a kid or even today playing monopoly with a group of friends and family together; meanwhile during the middle of the game someone else figure out that someone was cheating though most or even the entire game! Everyone was so angry at that person since you and everyone else was playing fair and trusted that person. That how corruption is seen as in the world: a person who playing unfair. People think that corruption is something new in foreign countries that are super strict; while yes, it is mostly seen in radical countries, it is not the only place it's been seen and it's not new to the world either.

Read More

The Worldcom Fraud Case

2107 Words | 9 Pages

Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.

Read More

More about Foreign Corrupt Practices Act Case Study

Related Topics

Open Document