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by ebg13 2561 days ago
> Walmart was able to negotiate a lower fine after President Trump, who had previously criticized the Foreign Corrupt Practices Act, took office.

Can anyone explain a reason why someone who isn't a cad might not agree with the FCPA (ie. for reasons that aren't "money good, ethics bad")? This isn't a dig at Trump. I just don't understand the law well enough to know how angry I should be.

2 comments

I will just play devil's advocate. Sometimes different cultures have very different ideas about what is an ethical way of doing things. If you're passing judgement on Walmart here, I think you're also passing judgement on Brazilian culture. Of course, you're welcome to do so, and I might even agree with you. But if you want to fine Walmart for doing things the "Brazilian way" while operating in Brazil, then I think if you are going to be a principled person you must also advocate for trade sanctions or other barriers to doing business with Brazil since you think their way of doing things is naughty. I hope you're prepared for a long battle though, because once you get done fussing at the Brazilian people and their culture you've got a very, very long list of other countries you need to be prepared to harass.
That assumes corruption exists in these countries because people are OK with it, but that doesn't square with everything I've read about corruption. It exists because corrupt systems are difficult to dismantle.

By analogy, imagine someone from outside the US making the argument that it's "just our culture" that makes it OK for a lobbyist to walk into a senator's office with a $20,000 check in hand ready to discuss policy. That's a situation almost nobody is happy with here - it's not a "cultural difference" but a difference in how power structures have been built up over time through a concerted effort by very small groups in a larger society.

If the people in power are abusive in some way, then advocate sanctions or something. Fining Walmart because a Brazilian Walmart employee living and working in Brazil greased few palms to get building permits seems like a fool's errand.
> OK for a lobbyist to walk into a senator's office with a $20,000 check in hand ready to discuss policy

Or maybe your wife is Secretary of State and OK's a Uranium deal right after you get paid hundreds of thousands of dollars to give a speech to an empty room.

Does you advocacy extend to other “cultural differences” like child labour, age of consent laws, or indentured servitude?
There are some types of culturally accepted behaviors that I would and do get on my soap box and say we shouldn't do business with those places. A little grifting for building permits is not one of those.
> But if you want to fine Walmart for doing things the "Brazilian way"

Is this "Brazilian way" legal in Brazil? If so, there is a decent chance that it is allowed under the FCPA.

There are a number of court cases currently in Brazil that suggest that the "Brazilian Way" is not in fact in accord with Brazilian law. https://en.wikipedia.org/wiki/Operation_Car_Wash

Parent may argue that Brazilians themselves are thereby insensitive to the "Brazilian way" and should be educated by US corporations as to the social values they should hold.

On the contrary. If Brazil doesn't think this is the way things should be done, Brazil should fine, arrest, or whatever is relevant to Brazilian custom and law. If the US government wants to report to Brazilian government some findings of wrongdoing, then so be it. But it doesn't make sense for the US to fine a US corporation for the wrongdoings of a Brazilian committing a crime in Brazil.

And let's not pretend that there's no difference between the letter of the law and the cultural norm. Selective enforcement of laws that are out of sync with cultural norms couldn't be more common. There are places in the world where low level corruption is so common that tourists are recommended to carry some cash to pay off police or other grifters so that the tourist can avoid pretty awful consequences when they're totally innocent. Should the US fine those tourists? It doesn't make sense to me.

>you've got a very, very long list of other countries you need to be prepared to harass.

Starting perhaps with US briber- cough cough - campaign financing practices.

Yes, imagine Japan fining Honda for its US component participating in lobbying "the American way." To me, it seems ridiculous.
Personally it sounds like a diplomatic and moral superiority coup to position themselves strongly in the future.

If it was done by a foreign superpower which wouldn't be obvious massive hypocrites I would be very afraid for future diplomatic and trade impacts if I was in the US government - especially if reforming wasn't in "my department".

Agreed.
In theory it could unfairly handicap American companies relative to foreign companies.

This doesn’t seem to have happened much in practice though so I support the FCPA. Corruption is a big scourge in many countries and it is a really good thing American money is prohibited from exacerbating the issue.

> In theory it could unfairly handicap American companies relative to foreign companies.

Seems like it would be sensible for the US to push the rest of the world to adopt the same law. We're able to push other countries to adopt our war on drugs laws, why not war on corruption?

Many countries do have laws against corruption, but it's so institutionalized that the laws are functionally toothless.
In many (most?) countries in the world, the rule of law is not strong enough that you could expect these laws to be meaningfully enforced.