The foreign corrupt practices act: The failure of the self-regulatory model of corporate governance in the global business environment [Book Review]

Journal of Business Ethics 88 (4):615 - 661 (2009)
The American regulatory model of corporate governance rests on the theory of self-regulation as␣the most effective and efficient means to achieve corporate self-restraint in the marketplace. However, that model fails to achieve regular compliance with baseline ethical and legal behaviors as evidenced by a century of repeated corporate debacles, the most recent being Enron, WorldCom, and Refco. Seemingly impervious to its domestic failure, Congress imprinted the same self-regulation paradigm on legislation restraining global business behavior, the Foreign Corrupt Practices Act. This anti-bribery initiative prohibits unethical and illegal payments made to foreign public officials in an effort to eradicate bribery as a rational-choice global market entry strategy. However, this paper illustrates, using newly complied statistics from 1977 to 2008, that the FCPA has not had a dramatic impact on U.S. global corporate behavior despite its recent high profile coverage and the tough regulatory rhetoric about corporate compliance. The paper also extends the prior Cragg and Woof FCPA efficiency study and provides current empirical evidence to resolve several unanswered questions raised by that earlier study.
Keywords corporate governance  Foreign Corrupt Practices Act  global ethics  bribery  self-regulation  Rational-choice theory
Categories (categorize this paper)
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 23,305
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA
Domènec Melé (2008). Integrating Ethics Into Management. Journal of Business Ethics 78 (3):291 - 297.

View all 8 references / Add more references

Citations of this work BETA

View all 7 citations / Add more citations

Similar books and articles
Jennifer Bremer & Nabil Elias (2007). Corporate Governance in Developing Economies the Case of Egypt. International Journal of Business Governance and Ethics 3 (4):430-445.
Viet Ha Hoang (2006). Securities Market and Corporate Governance of Privatised Firms. International Journal of Business Governance and Ethics 2 (s 3-4):254-279.

Monthly downloads

Added to index


Total downloads

115 ( #38,184 of 1,932,544 )

Recent downloads (6 months)

3 ( #271,972 of 1,932,544 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.