The 1998 OECD Convention: An Impetus for Worldwide Changes in Attitudes Toward Corruption in Business Transactions

Abstract

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, as formulated by the Organization for Economic Cooperation and Development (OECD), provides an impetus for worldwide changes in legislation governing international business transactions. The Convention obligates signatory countries to adopt domestic legislation making bribery of foreign public officials a criminal act. Additionally, the Convention emulates the corporate accountability approach of the U.S. Foreign Corrupt Practices Act to detect corrupt payments. The Convention alone is not enough, however, to address other corrosive aspects of corruption. This article examines the strengths of the Convention, analyzes its shortcomings, and recommends that the OECD pursue a multi-faceted strategy to tackle corruption. The strategy should include alliances with other multilateral organizations, international financial institutions, and civil society to develop additional initiatives for educating relevant parties and changing their attitudes about corruption, so that it will be significantly diminished.

Keywords: OECD, convention bribery, foreign corrupt practices act