In a very interesting editorial piece for the Wall Street Journal, columnist William Galston discussed the negative attitude that most Americans have for corporations. Galston cited to a variety of reasons, including the financial crash of 2008 and the onset of the “Great Recession” the same year. Other factors included the outsourcing of U.S. jobs overseas, the explosion in CEO pay, and what Galston called the breach of the “social compact” between citizens and its corporations, where “people are willing to give big business substantial latitude to chart its own course. In return, business leaders are expected to give due weight to the interests of the people, including not only the businesses’ employees but also the citizens of the communities whose well-being the leaders’ decisions affect.” Such pact has been shattered by the actions of many companies.
Of the many reasons for compliance with anti-corruption laws such as the FCPA, this social compact may be not only one of the strongest but also one of the most overlooked. Complying with the FCPA is simple; a company merely does not engage in bribery. However it is not easy from a business perspective. The work comes when putting a best practices compliance program into place for your organization. A company must want to do so; you simply cannot stumble your (corporate) way into FCPA compliance.
