Baker Hughes: Foreign Corrupt Practices Act

Posted: 31 Aug 2010

See all articles by David F. Larcker

David F. Larcker

Stanford University - Graduate School of Business

Brian Tayan

Stanford University - Graduate School of Business

Date Written: August 1, 2010

Abstract

In 2002, Baker Hughes was accused of violating the Foreign Corrupt Practices Act (FCPA). This case describes the actions taken by the company in response to those accusations. These include hiring a third-party law firm to undertake an independent investigation and voluntarily reviewing its entire global operations with the purpose of discovering other FCPA violations. Simultaneously, the company engaged in a comprehensive restructuring of its policies and systems for preventing and detecting the issuance of questionable payments.

Keywords: Corporate governance, Bribery. Corruption, Control systems, Risk Management

JEL Classification: G3, G30, G34, G39

Suggested Citation

Larcker, David F. and Tayan, Brian, Baker Hughes: Foreign Corrupt Practices Act (August 1, 2010). Rock Center for Corporate Governance at Stanford University Teaching Case No. CG-18. Available at SSRN: https://ssrn.com/abstract=1668715

David F. Larcker (Contact Author)

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Brian Tayan

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

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