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SN: The international business that has faced requests for an unofficial surcharge in response to foreign candidates can take a handful of actions that are both formal as well as informal. Though it is noticed that offering bribery is a common way of business in a locale of Noname yet company’s anti-bribery and facilitation policy need to be in compliance with federal and state legislations. Besides, HR team to avoid such illegal requests from officials can acquire further actions. Though it will contribute to delay in project deliverables, regulatory compliances with anti-bribery provisions in USA can fortify this business’s long-term sustainability in Noname.
SN: The project of global logistics has selected 15 local and 10 foreign workers, which resulted in official requests for an unofficial ‘surcharge’ of US$200 for each employee in Noname country. This is perceived to be a common way of doing business in locale though this company is against explicit bribery and facilitation.
SN: Even though local or Noname government officials request this unofficial surcharge, which can drive project delay yet going against bribery is to be considered. Since this brand is new in this country, not following usual illegal practices not only help to enhance its brand value but also accelerate its sustainability. However, it is undeniable that going against unofficial requests of local government can derive probable challenges.
SN: Foreign Corrupt Practice Act of 1977 emerges to be a savior in this context. This is because though unofficial surcharge is noticed to be a common way of doing business in Noname yet this can result in this international ship-owning line company witnessing federal prosecution. Hence, complying with this federal regulatory framework seems to be effective for the team even it leads to project delay.
SN: These are a handful of regulatory frameworks that existed in the United States, which intend to sustain rights of foreign employees. The international company, which has recruited 10 foreign workers along with 15 local employees, need not accept a request of Noname government officials for an unofficial surcharge of US$200 for each international worker.
SN: Going for trial in order to proceed with anti-bribery provision is a legal action, which may be costly and time taking. In this context, though it can foster project delay in Noname concerning its global logistics interests yet non-compliance with regulatory frameworks can entitle this venture to federal prosecutions in this economy. Therefore, the management team of this company can act in accordance with regulatory frameworks that existed in United States.
SN: Apart from formal actions, management team of this international company can take informal actions, such as extensive communication with Noname government officials. This is intended to ensure a settlement without extracting legal as well as official essentials. In international businesses, such as in this mentioned case study, compliance with regulatory provisions can be done through effective communications with stakeholders, which will also help to achieve United Nations sustainability goal, (SDG 16) exhibiting bribery, and corruption.
SN: A number of actions are discerned to retain a decision regarding not to go with Noname officials’ request for illegal surcharges for its 10 foreign employees. These feasible actions are chosen tactically considering organizational reputation, standards, and long-term sustainability with regard to its competitive edge in a new market of Noname. In addition, these actions can exhibit effective leadership, which embraces policies that are in line with compliance with labor laws. It, in turn, enhances operational and organizational standards in the country where it operates.
SN: HR management in this international company has already recruited 10 foreign employees, which has resulted in an illegal request from Noname local government officials for a surcharge of USD 200. However, practices or actions can be adopted by the human resource team, such as anti-bribery controls, due diligence with this third party, and more to avoid this corruption while initiating international businesses.
SN: Though shifting these 10 foreign employees from this project can be degrading due to potential project delay, yet this can ensure its commitment against international obligations, such as illegal surcharge. Hence, shifting these 10 foreign workers in home country’s projects, while involving only 15 local employees in mentioned Noname project, can be effective. On one hand, it will retain foreign employees’ trust in organizational leaders, while also complying with organizational anti-bribery policies.
SN: It is undeniable that accepting this unofficial surcharge of USD 200 would be fruitful to avoid delays in project deliverables. However, it can hinder not only organizational standards in a new country of Noname but also derives possibility for this company to be under federal prosecution according to FCPA in USA. Therefore, taking identified actions seems fruitful for this company’s international business in Noname.
SN: A handful of actions are noticed, which organizational managers and leaders of this international firm in Noname can adopt. Role of human resource management is further discerned in taking actions that can retain organizational sustainability of this international business. It is undeniable that their acts can contribute to project delay yet these can be beneficial to extract competitive edge of this venture.
Journals
Baum, T. (2018). Sustainable human resource management as a driver in tourism policy and planning: a serious sin of omission? Journal of Sustainable Tourism, 26(6), 873-889. Retrieved from: https://strathprints.strath.ac.uk/62581/1/Baum_JST2017_Sustainable_human_resource_management_as_a_driver_in_tourism_policy.pdf
Golden, N. (2018). Conspicuous Prosecution in the Shadows: Rethinking the Relationship Between the FCPA's Accounting and Anti-Bribery Provisions. IowA L. REv., 104, 891. Retrieved from: https://ilr.law.uiowa.edu/assets/Uploads/ILR-104-2-Golden.pdf
Mance, A. A., & Mistree, D. (2022). The Bribery Double Standard: Leveraging the Foreign–Domestic Divide. Stanford Law Review, 74(1). Retrieved from: https://review.law.stanford.edu/wp-content/uploads/sites/3/2022/01/Mance-Mistree-74-Stan.-L.-Rev.-163.pdf
Montiel, I., Cuervo-Cazurra, A., Park, J., Antolín-López, R., & Husted, B. W. (2021). Implementing the united nations’ sustainable development goals in international business. Journal of International Business Studies, 52(5), 999-1030. Retrieved from: https://link.springer.com/article/10.1057/s41267-021-00445-y
Mousoudakis, M., Dowdle, J., Leal, S., & Searle, D. (2020). Changing Landscape of International Anti-Bribery and Corruption Compliance. Currents: J. Int'l Econ. L., 24, 42. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/curritlj24§ion=10
Shepherd, D. A., Parida, V., & Wincent, J. (2021). Bribery from a micro, demand-side perspective. Small Business Economics, 57(4), 1661-1680. Retrieved from: https://haris.hanken.fi/ws/portalfiles/portal/27129574/Bribery_Small_Business_Economics.pdf
Struebing, J. E. (2018). Federal criminal law and international corruption: An appraisal of the FIFA prosecution. New Criminal Law Review, 21(1), 1-56. Retrieved from: https://online.ucpress.edu/nclr/article-abstract/21/1/1/68824
Websites
Federalregister.gov (2020). U.S. Citizenship and Immigration Services Fee Schedule and Changes to Certain Other Immigration Benefit Request Requirements. Retrieved on 14/02/2022, from: https://www.federalregister.gov/documents/2020/08/03/2020-16389/us-citizenship-and-immigration-services-fee-schedule-and-changes-to-certain-other-immigration
Hbr.org (2018). How Companies Can Take a Stand Against Bribery. Retrieved on 14/02/2022, from: https://hbr.org/2018/09/how-companies-can-take-a-stand-against-bribery
Oecd.org (2022). Anti-Corruption Ethics and Compliance. Retrieved on 14/02/2022, from: https://www.oecd.org/corruption/Anti-CorruptionEthicsComplianceHandbook.pdf
Sgp.fas.org (2018). Can a Foreign Employee of a Foreign Company be Federally Prosecuted for Foreign Bribery? Retrieved on 14/02/2022, from: https://sgp.fas.org/crs/misc/LSB10197.pdf
Webapps.dol.gov (2022). Fair Labor Standards Act Advisor. Retrieved on 14/02/2022, from: https://webapps.dol.gov/elaws/whd/flsa/scope/screen9.asp#:~:text=The%20FLSA%20applies%20to%20employment,office%20in%20the%20United%20States.
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