What do you get when you combine the acronyms FCPA, SEC, UK and US? Answer: trouble for public companies in both countries. Lawmakers are cracking down on corporate corruption and as Asheesh Goel, partner, Ropes & Gray, explains, the legal landscape is changing rapidly and prosecutors around the world are ready to make an example out of your company.
Corporate Board Member: Statistically, is corporate corruption on the rise or the decline?
Asheesh Goel: I'm not aware of any study on whether corporate corruption is increasing. However, one thing is clear: the investigation and prosecution of corporate corruption has increased in a statistically significant amount. Really for the past 5 years, the US government, through the Department of Justice and the Securities & Exchange Commission, has made a substantial commitment of time and resources to this key area of white collar crime. Anecdotally, I would expect that corruption in general increases during economic recessions as unscrupulous individuals seek an unfair advantage.
CBM: What impact has the Foreign Corrupt Practices Act had on US companies?
AG: There are competing views on this. Many companies have felt that they are at a competitive disadvantage because the playing field is not level, tilting in favor of those who are not subjected to US laws.
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