Business Ethics CH. 6 Welch

Routine Governmental Action (FCPA)

Any regular administrative process or procedure, excluding any action taken by a foreign official in the decision to award new or continuing business.

Public Company Accounting Oversight Board (PCAOB)

An independent oversight body for auditing companies.

Death Penalty (FSGO)

A fine that is set high enough to match all the organization out of business. This is warranted where the organization was operating primarily for a criminal purpose.

Financial Stability Oversight Council (FSOC)

A government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

Sarbanes-Oxley Act (SOX)

A legislative response to the corporate accounting scandals of the early 2000's that covers the financial management of businesses.

The Bank Secrecy Act

Also required full disclosure of funds that were taken out of or brought into the United States.

Federal Sentencing Guidelines for Organizations (FSGO)

Ch. 8 of the guidelines that hold businesses liable for the criminal acts of their employees and agents.

The Securities and Exchange Commission (SEC)

Could fine companies for failing to disclose such payments under its securities rules.

Foreign Corrupt Practices Act (FCPA)

Legislation introduced to control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies.

Facilitation Payments (FCPA)

Payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action

Prohibition (FCPA)

The FCPA inclusion of wording from the Bank Secrecy Act and the Mail Fraud Act to prevent the movement of funds overseas for the express purpose of conducting a fraudulent scheme.

Disclosure (FCPA)

The FCPA requirement that corporations full disclose any and all transactions conducted with foreign officials and politicians.

Culpability Score (FSGO)

The calculation of a degree of blame or guilt that is used as a multiplier of up to four times the base fine. The culpability score can be adjusted according to aggravating or mitigating factors.