NCJ Number
65819
Journal
AFL-CIO AMERICAN FEDERATIONIST Volume: 85 Dated: (OCTOBER 1978) Pages: 17-25
Date Published
1978
Length
9 pages
Annotation
CASES OF UNETHICAL AND ILLEGAL PRACTICES BY LARGE CORPORATIONS ARE DESCRIBED, INCLUDING BRIBERY, COMMODITIES FRAUD, PRICE FIXING, AND TAX EVASION.
Abstract
THE PUBLIC HAS REMAINED APATHETIC TO DISCLOSURES OF WIDESPREAD CORPORATE CORRUPTION BECAUSE OF THE ENORMOUS AMOUNTS OF MONEY INVOLVED AND THE ARGUMENTS OF BUSINESSMEN THAT BRIBERY OF FOREIGN OFFICIALS WILL EVENTUALLY CORRUPT THE DOMESTIC ECONOMY AND THREATEN THE EFFICIENCY OF THE COMPETITIVE MARKET SYSTEM. ILLEGAL BUSINESS ACTIVITIES ALSO RESULTS IN LOSS OF TAX REVENUES AND HIGHER PRICES FOR THE CONSUMER. THE SCOPE OF CORPORATE CORRUPTION IS ILLUSTRATED BY NUMEROUS EXAMPLES OF COMPANIES UNDER INDICTMENT OR INVESTIGATION DRAWN FROM THE 13 MAJOR INDUSTRIES, INCLUDING TRANSPORTATION, ELECTRONICS, BANKING, AND OIL. SPECIAL INSERTS DESCRIBE CASES INVOLVING QUESTIONABLE POLITICAL CONTRIBUTIONS AND FOREIGN BRIBERY. ALTHOUGH THE SECURITIES AND EXCHANGE COMMISSION CAN ONLY INSTITUTE CIVIL LAWSUITS AGAINST VIOLATORS, IT SETTLES MOST CASES BY A CONSENT ORDER BECAUSE OF BUDGET AND STAFF INADEQUACIES. THE JUSTICE DEPARTMENT FACES DIFFICULTIES IN PROSECUTING CORPORATIONS BECAUSE IT CANNOT GAIN ACCESS TO SECRET FOREIGN BANK ACCOUNTS AND OTHER CORPORATE RECORDS. THE INTERNAL REVENUE SERVICE IS INVESTIGATING THE SUBSTANTIAL BENEFITS THAT EXECUTIVES RECEIVE, WHICH OFTEN SERVE AS TAX SHIELDS. THE CORPORATE GOVERNANCE REFORM MOVEMENT ADVOCATES MAKING CORPORATE DIRECTORS AND OFFICIALS MORE ACCOUNTABLE TO SHAREHOLDERS. SUCH GROUPS ATTEMPT TO EDUCATE SHAREHOLDERS ON THEIR RIGHTS AND PROMOTE INCREASED SHAREHOLDER CONTROL OF SOCIAL, POLITICAL, AND ECONOMIC ISSUES. LEGISLATIVE EFFORTS INCLUDE THE 1977 FOREIGN CORRUPT PRACTICES ACT AND A TASK FORCE ON CORPORATE ACCOUNTABILITY ESTABLISHED BY THE FEDERAL TRADE COMMISSION. (MJM)