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What is Foreign Corrupt Practices Act (FCPA)?

Organizations are becoming more active in defining responsible corporate behavior, and this trend is likely to continue. Irresponsible behavior tends to invite an increase in governmental monitoring and regulation. 
 
For example, after many American companies were found to have given bribes in connection with business activities, the United States passed the Foreign Corrupt Practices Act (FCPA) in 1977. 
 
This law prohibits U.S. corporations from offering or giving bribes (directly or indirectly) to foreign officials to influence those individuals (or cause them to use their influence) to help businesses obtain or retain business. The act is directed at payments that cause officials to act in a way specified by the firm rather than in a way prescribed by their official duties.
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