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Ethical Analysis Report

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Case 9-1 U.S. vs. Kay Analysis
LEG500 Law, Ethics and Goverenance

In this case, U.S. vs. Kay, American Rice Inc. (ARI), two employees who supervised the importation of rice to Haiti are being reprimanded by the United States Foreign Corrupt Practice Act of 1977 (FCPA) for falsely reporting the weight and value of the rice being imported to Haiti and bribing the Haitian agencies to accept these illegal documents stating this forgery. Kay and Murphy are on trial for these unethical acts and have been charged with twelve counts of FCPA violations.
The key stakeholders in this case are David Kay, the vice president for marketing of American Rice, Inc. (ARI), Douglas Murphy the president of ARI, other employees and the Haitian government officials who accepted these bribes. They all face operational and ethical issues such as tax evasion, bribery, and fraud are what they are facing.  
Ethical Analysis
The Foreign Corrupt Practices Act (FCPA) of 1977 prohibits the authorization of the payment of money directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity induces the foreign official to do or omit to do an act in violation of his or her lawful duty (Foreign Corrupt Practices Act, 1977). Kay and Douglas violated the FCPA by bribing foreign officials to accept falsified documents and lying about the weight of the rice being shipped. The paying millions of dollars to Haitian officials to engage in this act allowed ARI to avoid paying extra import taxes in Haiti for their rice.   Kay and Murphy were directly involved with the supervision and the falsification of shipping records.   The FCPA sets out an intent or knowing standard of liability for corporate management. It requires all companies whether doing business abroad or not to set up a system of internal controls that will provide reasonable assurance that the company’s records accurately and fairly reflect...

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"Ethical Analysis Report". Anti Essays. 21 Jun. 2018


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Ethical Analysis Report. Anti Essays. Retrieved June 21, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Ethical-Analysis-Report-88580.html