Advances in Economics and Business Vol. 2(3), pp. 148 - 153
DOI: 10.13189/aeb.2014.020304
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U.S. Multinational Corporations in Countries with Low Corruption Perception Index


Andrew I. Nwanne *
College of Business, Indiana Institute of Technology, United States

ABSTRACT

Multinational corporations (MNCs) manage production or deliver services in many countries. These corporations are required to comply with applicable U.S. laws and those of their host countries; however, the business environments differ from country to country as well as standards, practices, laws, ethics, culture and system of government. As a result, U.S. multinationals face various dilemmas and challenges in the global business environment as they strive to increase productivity, revenues, and profitability and at the same time comply with the existing laws against bribery and corruption in both home and host countries. This study reviewed the existing literature and examined the findings of the U.S. Department of Justice on select U.S. MNCs in violation of the Foreign Corrupt Practices Act (FCPA). Bribery as instrument of business practice has adverse impact on the multinational corporation, the host country, and the home country. The Foreign Corrupt Practices Act has been instrumental in controlling the U.S. businesses in bribery conducts abroad. The stiff sanctions against the violators have been effective in compliance assurance. It is recommended that countries with low corruption perception index enact or enforce their existing laws against bribery and corruption and MNCs utilize the assurance framework to avoid corrupt practices.

KEYWORDS
Multinational Corporation, Bribery, Corruption, Foreign Corrupt Practices Act

Cite this paper
Andrew I. Nwanne . "U.S. Multinational Corporations in Countries with Low Corruption Perception Index." Advances in Economics and Business 2.3 (2014) 148 - 153. doi: 10.13189/aeb.2014.020304.