2. Contents
I. Review of Previous Lesson
II. Lesson Objectives
III. Introduction
IV.New Lesson
V. Summary
VI.Key Terms
VII.Discussion Questions
VIII.Homework / Journal Writing
3. I. Review of Previous Lesson
‐ What is the meaning of corporate
governance?
‐ What are the responsibilities of the
board of directors and the major
governance committees?
4. II. Lesson Objectives
1. Identify the five key pieces of U.S. legislation designed to
discourage, if not prevent, illegal conduct within organizations.
2. Understand the purpose and significance of the Foreign Corrupt
Practices Act (FCPA ).
3. Calculate monetary fines under the three-step process of the U.S.
Federal Sentencing Guidelines for Organizations (FSGO).
4. Compare and contrast the relative advantages and disadvantages of
the Sarbanes-Oxley Act (SOX).
5. Explain the key provisions of the Dodd-Frank Wall Street Reform
and Consumer Protection ct.
5. II. INTRODUCTION
"People who enjoy eating sausage
and obey the law should not
watch either being made.“
Otto von Bismarck (1815-1898)
Chancellor of Germany
6. Key Legislation
• The Foreign Corrupt Practices Act (1977)
• The U.S. Federal Sentencing Guidelines for
Organizations (1991)
• The Sarbanes‐Oxley Act (2002)
• The Revised Federal Sentencing Guidelines for
Organizations (2004)
• The Dodd‐Frank Wall Street Reform and Consumer
Protection Act (2010)
7. Key words
• Consumer Financial Protection Bureau (CFPB)
• Legal VS illegal ច ប់ VS ខុសច ប់
• To pass the law អនុម័តច ប់
• To enforce/implement the law េដើម ីអនុវត្ត/អនុវត្តច ប់
• To break the law បំ នច ប់
• To boycott េធ្វើពហិការ
• To sentence s.o to dead កាត់េ ស SOMEONE ឱ ្ល ប់
• Justice VS injustice យុត្តិធម៌ VS អយុត្តិធម៌
• To prohibit or ban ម ត់ ឬ ម ត់
8. Roles of the Governments
• Lead the teams or staff
• Governments are in charge of providing services like
military defense, fire and police departments, roads,
education, social services, and environmental
protection that people cannot successfully supply for
themselves. Water, sewage treatment, or electricity
are just a few examples of the public utilities that
certain governmental agencies offer.
• Governments levy taxes and fees, as well as charge for
many of the services they offer to the general public,
in order to raise the funds required to deliver services.
9.
10. The Foreign Corrupt Practices Act (FCPA)
មុនេពលអនុម័តចបប់េនះ ភពខុសចបប់ៃនករបង់្របក់សំណ
ូ ក្រតូវបនផ្តន្
ទេទសែត មរយៈ្របភព 'បន
ទ ប់បន ំ' ៃនចបប់៖
• គណៈកមមករមូលប្រត (SEC) ចផកពិន័យ្រកុមហ៊ុនននចំេពះករ
ខកខនកនុងករបង
្ហ ញករទូទត់ែបបេនះេនេ្រកមចបប់មូលប្រតរបស់
ពួកេគ។
Prior to the passing of this law, the illegality of
paying bribes was punishable only through
‘secondary’ sources of legislation:
– The Securities and Exchange Commission (SEC)
could fine companies for failing to disclose such
payments under their securities rules.
11. The Foreign Corrupt Practices Act (FCPA)
• The Bank Secrecy Act also required the full disclosure of
funds that were taken out of or brought into the USA.
• The Mail Fraud Act made the use of the US Mail or wire
communications to transact a fraudulent scheme illegal.
• ចបប់សម
ង ត់របស់ធនគរ ក៏ទមទរឱយ
មនករ ត្រត ងេពញេលញ ៃនមូល
និធិ ែដល្រតូវបនយកេចញពី ឬនំយក
េទសហរដ្ឋ េមរិក។
• ចបប់ែក្លងបន្លំសំបុ្រត បនេធ្វើឱយករេ្របើ
្របស់អុីែមល ឬទំនក់ទំនង មែខ របស់
សហរដ្ឋ េមរិក េដើមបីេធ្វើ្របតិបត្តិករ
គេ្រមងែក្លងបន្លំខុសចបប់។
12. The Foreign Corrupt Practices Act (FCPA)
• FCPA is enforced jointly by the
US Department of Justice (DOJ)
and the Securities and Exchange
Commission (SEC).
• The Act encompassed all the
‘secondary’ measures that were
currently in use to prohibit such
behavior by focusing on two
distinct areas:
• FCPA ្រតូវបនអនុវត្តរួមគ
ន
េ យ្រកសួងយុត្តិធម៌សហរដ្ឋ
េមរិក (DOJ) និងគណៈកមមករ
មូលប្រត (SEC)។
• ចបប់េនះ បន្រគបដណ
្ត ប់ ល់
វិធនករ 'បន
ទ ប់បន ំ' ែដល
បចចុបបននកំពុងេ្របើេដើមបី មឃត់
កបបកិរិយែបបេនះ េ យេផ
្ត
តេលើែផនកពីរេផ ងគ
ន ៖
13. The Foreign Corrupt Practices Act (FCPA)
• ករបង
្ហ ញ - ចបប់េនះត្រមូវឱយ ជីវកមមបង
្ហ ញឱយបនេពញេលញនូវ ល់្របតិបត្តិករ
ទំងអស់ែដលេធ្វើេឡើងជមួយម្រន្តីបរេទស និងអនកនេយបយ ្រសប មបទបបញញត្តិ
របស់ SEC ។
• ករ មឃត់ - ចបប់េនះរួមបញចូ លពកយៃនចបប់សម
ង ត់របស់ធនគរ និងចបប់ែក្លង
បន្លំសំបុ្រត េដើមបី មឃត់ចលនៃនមូលនិធិេទេ្រក្របេទសកនុងេគលបំណង
ចបស់ ស់ៃនករអនុវត្តគេ្រមងែក្លងបន្លំ។
• Disclosure – the Act required corporations to fully disclose any and all
transactions conducted with foreign officials and politicians, in line with
the SEC provisions.
• Prohibition – the Act incorporated the wording of the Bank Secrecy Act
and the Mail Fraud Act to prohibit the movement of funds overseas for
the express purpose of conducting a fraudulent scheme.
14. The U.S. Federal Sentencing Guidelines For
Organizations (FSGO) 1991
• Holds organizations liable for the criminal acts of
their employees and agents
• Penalties under FSGO included:
– Monetary fines
– Organizational probation
– The implementation of an operational program to
bring the organization into compliance with FSGO
standards
15. The U.S. Federal Sentencing Guidelines For
Organizations (FSGO) 1991
MONETARY FINES
If an organization is sentenced under FSGO,
the calculation of the fine is determined
through a three‐step process:
1. The determination of the ‘base fine’
2. The Culpability Score
3. The total fine amount
16. Revised FSGO 2004
• Formally adopted in November, 2004
• Three key changes
• ្រកុមហ៊ុនត្រមូវឱយ យតៃម្លជ្របចំនូវ្របសិទធភព ៃនកមមវិធី
អនុេ មភពរបស់ពួកេគ េ យសនមតថមន និភ័យ
េ្រចើនែដលកមមវិធី មួយ ចប ជ័យ។
• Companies required to periodically evaluate the
effectiveness of their compliance programs on the
assumption that there was a substantial risk that any
program was capable of failing
17. Revised FSGO 2004
• េគលករណ
៍ ែណនំែដលបនែកស្រមួលត្រមូវឱយមនភស្តុ ងៃនករ
េលើកកមពស់សកមមៃន្រកមសីលធម៌ជជងករអនុេ ម មកតព្វកិចច
ផ្លូវចបប់។The revised guidelines required evidence of an
active promotion of ethical conduct rather than just
compliance with legal obligations.
• ទំនួលខុស្រតូវ្រតូវបនកំណត់កន់ែតចបស់េនកនុងេគលករណ
៍
ែណនំែដលបនែកស្រមួល Accountability was more clearly
defined in the revised guidelines
18. Sarbanes‐Oxley Act (SOX) 2002
• Public Company Accounting Oversight Board (PCAOB)
• Auditor Independence
• Corporate Responsibility
• Enhanced Financial Disclosures
• Analyst Conflict of Interest
19. Sarbanes‐Oxley Act (SOX) 2002
• Commission Resources and Authority
• Studies and Reports
• Corporate and Criminal
Fraud Accountability
• White Collar Crime
Penalty Enhancements
• Corporate Tax Returns
• Corporate Fraud &
Accountability
20. Dodd‐Frank Wall Street Reform 2010
• Consumer Financial Protection Bureau
(CFPB)
• Financial Stability Oversight Council (FSOC)
• The Volcker Rules
21. Review Questions
1. Explain the FCPA!
2. Explain the FSGO!
3. Explain the SOX!
4. Explain the Revised FSGO!
5. Explain the Dodd-Frank Wall
Street Reform!
22. SUMMARY
With the ink barely dry on yet another piece of
legislation seeking to enforce ethical business conduct,
students of business ethics can be forgiven for wondering
if corporations can ever be counted on to “do the right
thing.” Indeed, cynics would argue that the first order of
business for the financial institutions directly affected by
Dodd-Frank was to assign teams to figure out ways
around the new rules and restrictions.
