Corporate Governance and the Foreign Corrupt Practices Act - Explained

The video explains the Foreign Corrupt Practices Act (FCPA) and its influence on corporate governance. It highlights the role of the board of directors in making strategic decisions, including those involving foreign markets. The FCPA prohibits corporations from making payments or bribes to foreign officials for advantages, with limited exceptions. It emphasizes that even foreign activities can violate U.S. law if decision-making or knowledge is linked back to the U.S. The video underscores the importance of understanding these legal implications in corporate decision-making and governance.

What is the Foreign Corrupt Practices Act and what is its primary purpose?

How does the Foreign Corrupt Practices Act impact corporate governance practices?

What are the exceptions to the Foreign Corrupt Practices Act regarding payments to foreign officials?

In what ways can decision-making by managers violate the Foreign Corrupt Practices Act?

Discuss the implications of the Foreign Corrupt Practices Act on U.S. corporations operating abroad.