Enhancing the Effectiveness of the Foreign Corrupt Practices Act through Corporate Social Responsibility
24 Pages Posted: 22 Feb 2013
Date Written: 2012
Over the last decade, combating corruption has taken a place alongside human rights, labor rights, and environmental protection as one of the major issues in corporate social responsibility (CSR). Major CSR initiatives and activities now play a role in helping to try to reduce the supply-side of corruption. Due to the increased enforcement of the Foreign Corrupt Practices Act (FCPA), it is important to consider how CSR and the enforcement of antibribery laws can support each other. This brief essay reviews how the major CSR initiatives seek to influence corporate behavior, with a focus on the major themes of disclosure, dialogue with stakeholders, and development of the firm’s ethical culture. Then, as an example, the essay explores how one of the suggested reforms of the FCPA — the compliance defense — could best be implemented to ensure the reforms support and further the goals of the CSR activities related to anti-corruption.
Keywords: Corporate Social Responsibility (CSR), Corruption, Bribery, Foreign Corrupt Practices Act (FCPA), Transparency, United Nations Global Compact, Global Reporting Initiative
JEL Classification: M14, K2, K3, K4
Suggested Citation: Suggested Citation