The Justice Department is pushing hard to stop U.S. companies from using bribery to win business abroad. Don’t mistakenly get caught in its crosshairs.
Every day, U.S. businesses do billions of dollars in business with foreign countries, importing nearly $7.5 billion and exporting $6.4 billion in goods and services. Although the majority of this nearly $14 billion in trade is controlled by big business, small companies are starting to carve out a much bigger piece of the pie. The latest Census data shows that one-third of all export transactions is now conducted by small businesses.
Why It’s Now Easier To Be Convicted Of Bribery In Foreign Countries
Over the next decade, as technology makes it easier, foreign markets become more attractive, and difficulties at home make it a necessity to achieve growth elsewhere, more small businesses will likely engage in international trade. While this is a good development for business growth, business owners need to be careful not to fall into the same traps that many large companies have been caught in: bribing foreign officials to win business.
The United States is the only country in the world that makes it a crime to bribe a foreign official while in a foreign country in hopes of winning a contract or currying some other favor. The Foreign Corrupt Practices Act (FCPA) became law in 1977, and it holds both companies and individuals liable for its violations. But for decades, prosecutions under the Act were virtually nonexistent: From 1980 to 2000, there were only six enforcement actions.
About small business finance expert Mike Periu
Mike Periu has experience in small business finance. He founded Proximo, LLC a company that offers consumer and small business training services focused on technology and money.
Mike Periu teaches individual empowerment through entrepreneurship and financial literacy. He has appeared 500+ times on television and radio. Visit the Reach and Media pages of his website to learn more about where he has appeared.
You can read more of Mike’s articles on his blog or at American Express OpenForum, Yahoo! Finanzas and the Huffington Post.
Mike has a degree in International Business and Finance which he received at Georgetown University in Washington, DC. He received a Fellowship from the Kauffman Foundation for the Labs for Enterprise Creation program in Kansas City.
