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It All Depends What The “B” Word Means

bword

Often times, discussion of complex legal or public policy issues is clouded by simplistic rhetoric and narrative spinning.

Just don’t bribe. A zero tolerance for bribery.

Sounds good and to be sure in certain FCPA Act enforcement actions the simplistic rhetoric and narrative is actually true. For instance, Siemens had a “corporate culture in which bribery was tolerated and even rewarded at the highest levels of the company.” Odebrech/Braskem maintained a business unit that allegedly “served as little more than a bribe-paying department for the benefit of Odebrecht and Braskem.”

Yet in many other FCPA enforcement actions – and the FCPA compliance discussion generally – cliches like “just don’t bribe” and a “zero tolerance for bribery” are overly simplistic because it all depends on what the “b” word means.

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Court Refuses To Take The Bait On The Bribery Narrative

bait

There are certain narratives in the Foreign Corrupt Practices Act space – while theoretically possible – are rarely, if ever, found in actual FCPA enforcement actions.

For instance, all probably recognize that a bribe to foreign official to obtain a contract to build a bridge could – theoretically – result in the contract being awarded to a company that uses sub-standard steel causing the bridge to collapse and thus causing human injuries and/or death.

Likewise, all probably recognize that a bribe to a foreign physician (who the DOJ and SEC may consider a “foreign official”) to implant a defective medical device or to prescribe a worthless drug could – theoretically – result in patient health and safety issues.

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