Ralph Lauren Corp. basically bribes foreign officials for four years and only pays a fine to wrap it all up. Essentially bribery is just another cost of doing business because when caught (or reporting the crimes directly to the US Government), the company can end all civil and criminal prosecutions. In addition, no one goes to jail or prison. No one at the top loses a job. No probation either. And of course, the penalties will be minimal too. In this case, the penalty was merely twice the cost of the actual bribes. So, the feds don't actually have to try any cases for their salaries and they get money from the corporation. The corporation continues to do business as usual after paying some money out. And no lessons will be learned anywhere (except it's good to be be a multinational corporation).
Now, once again, compare this treatment to an attempt by one individual average citizen with a non-celebrity name. Look at the repercussions for bribing (or attempting to bribe) one public official in the US with a small amount, a police officer with a wad of cash, or a border official overseas. Immediate arrest, indictment within a week, maybe bail, and endless court appearances and legal fees. In the end, jail terms possible and fines at least 100s of times the bribery amount. That citizen will lose his job (even if it's unrated to the bribery) upon arrest and will never get hired anywhere because of his record.
Corporations are people too? Nonsense, unless those people are celebrities and politicians and CEOs that are above the law.
Dealbook has the story, Ralph Lauren Pays 1.6 Million to resolve bribery case.
Comments
Bribes in Foreign countries, very common
Bribes in foreign countries are really common and often the only way to "do business", but it is illegal.
In the big picture, U.S. payola to these various corrupt governments I take on a case by case basis on what that corporation is buying with their bribe, i.e. market access or to ensure their workforce remains slave labor?
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FCPA is there for a reason and should apply to everyone
The laws were passed in the 1970s to stop this very thing. Same with RICO laws to stop all organized crime. If big business can merely pay a small fine to get out of criminal and civil liabilities while the little person doing the very same thing inside his own country cannot, then the laws are a complete joke. Big multinationals bribing with impunity internationally was the very thing FCPA was supposed to stop. The corruption just doesn't reward corrupt officials, it also shows people in foreign countries that $ controls game. It helps support and strengthen corrupt elites overseas because if their wallets are open to billions of dollars from multinationals, then the constituents in other countries will not be listened to and the officials will merely serve the whims of multinationals. Basically what we have now. If someone in Argentina or Nigeria that wants to be ethical and honest sees that $ controls his government from corporate coffers, there's no incentive to be honest or fight corruption - he/she will simply be ignored as corporate boardrooms control his country.
different countries, different rules
It is a huge corporate no-no to engage in this, no doubt. China they will execute people for it.
Yet other countries, if you don't bribe, you're not going to do business in that country, at all.
I don't know if you saw Frontline's Black Money, we embedded it as a FMN here.
All about multinationals bribing around the globe, unfettered.
Incorporate in the US, follow our rules or don't do business
Sure, oversea people and businesses can murder people if they get in the way. Okay, but if someone wants to enjoy the protection of incorporation in the US (which abides them to follow our laws), then they can't claim business as usual. If they want to do what is permissible in other countries (e.g., bribe ministers for contracts, engage in ethnic cleansing to secure areas rich in resources), then they can incorporate overseas if they don't like FCPA and our other laws. The point of our laws and the whole purpose of being some sort of "model" (at least in the past) was to ensure our companies didn't engage in business as usual and foreigners at low levels overseas could at least believe that our government was better than their corrupt politicians and businesses. If we can't be any better, then scrap all the laws and let's just go for broke, anarchy and mayhem and anything goes as long as it's the highest bidder calling the shots here and abroad.
State impacts
What, since most states never decoupled their state tax system from the Federal, is the fiscal impact on lets say, a state like New Mexico?