Document Type
Peer-Reviewed Article
Publication Date
2012
Abstract
In the wake of corporate scandals occurring in the early 2000s, a need for stricter regulation was deemed necessary by the investors of U.S. public companies. In 2002, the Sarbanes-Oxley Act (SoX) was created. Accordingly, under the rules of SoX, U.S. corporations were faced with increased oversight and also needed to substantially improve their internal controls. As companies began to scrutinize their internal affairs more closely, some businesses detected other forms of criminal activity occurring internally, such as bribery. Those companies and individuals found to have committed bribery have violated the Foreign Corrupt Practices Act of 1977 (FCPA). Throughout this paper, a plausible correlation between SoX and a recent increase in reported violations of the FCPA will be assessed. This possibility is evaluated via a presentation of cases involving multinational corporations that have been found to have violated the FCPA. Based on the authors’ research, a pattern does exist between SoX and the enforcement of the FCPA. Finally, suggestions to modify the punishment for companies found guilty of committing bribery are also presented.
DOI
10.19030/jabr.v28i6.7329
Recommended Citation
Cascini, K., Delfavero, A., & Mililli, M. (2012). The Sarbanes Oxley Act's contribution to curtailing corporate bribery. The Journal of Applied Business Research, 28(6), 1127-112. doi: 10.19030/jabr.v28i6.7329
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Included in
Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons, Finance and Financial Management Commons
Comments
Journal of Applied Business Research is an open access journal (CC-BY 3.0)
Mario Mililli is a graduate research assistant in the John Welch College of Business at Sacred Heart University.