17 Jun 6 Paragraphs
Joseph Ingle, an overseas sales manager, has been dealing with a serious issue that is affecting Axetem’s foreign sales. Joseph has told Axetem’s CEO, Brian Tobias, that his sales team seems to be at a distinct disadvantage in the local markets of several countries. This is because other local competitors are using monetary incentives, favors, and expensive gifts to persuade the purchasing managers at major companies in those countries to place their orders with them as opposed to Axetem. It is also despite the fact that Axetem’s product lines are both competitively priced and also of better quality.
As a result, several of Joseph’s salespeople are now putting pressure on him to arrange for gifts to the purchasing agents of these companies because this seems to be an accepted way of doing business in those cultures. Joseph has also told Mr. Tobias that, in some instances, there are not even specific laws addressing this issue in these countries.
Brian Tobias has asked you to complete the following task for him:
Compose an e-mail to Joseph explaining the U.S. Foreign Corrupt Practices Act and its control objectives related to all transactions and accounts. Include any recent changes to the FCPA and provide examples of current cases involving the act.
Also, explain the penalties of noncompliance with this law.
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