International Expansion, Ethics, and Prohibited Foreign Trade Practices

Abstract

The challenges of developing an international organization and managing international expansion must include some mention of ethical considerations with regard to the pervasive use of bribery in international markets. The use of bribery to gain competitive advantage in foreign trade has been controversial over the years, with some treating bribery as a necessary evil, while others have declared it to be unethical at best and at worst, criminal. The United States finally took a stand on foreign bribery in the 1970s, when Congress passed the Foreign Corrupt Practices Act (FCPA). With civil engineering firms increasingly looking to international markets, this paper briefly reviews the challenges of international expansion and examines the economic impacts of bribery. The objectives and effectiveness of the FCPA are then examined, along with the ethical implications of both bribery and the FCPA, followed by a brief update on U.S. efforts to enforce the FCPA.