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Article
The Sarbanes Oxley Act's Contribution to Curtailing Corporate Bribery
WCOB Faculty Publications
  • Karen Cascini, Sacred Heart University
  • Alan DelFavero, Sacred Heart University
  • Mario Mililli, Sacred Heart University
Document Type
Peer-Reviewed Article
Publication Date
1-1-2012
Abstract

In the wake of corporate scandals occurring in the early 2000s, a need for stricter regulation was deemed necessary by the investors of U.S. public companies. In 2002, the Sarbanes-Oxley Act (SoX) was created. Accordingly, under the rules of SoX, U.S. corporations were faced with increased oversight and also needed to substantially improve their internal controls. As companies began to scrutinize their internal affairs more closely, some businesses detected other forms of criminal activity occurring internally, such as bribery. Those companies and individuals found to have committed bribery have violated the Foreign Corrupt Practices Act of 1977 (FCPA). Throughout this paper, a plausible correlation between SoX and a recent increase in reported violations of the FCPA will be assessed. This possibility is evaluated via a presentation of cases involving multinational corporations that have been found to have violated the FCPA. Based on the authors’ research, a pattern does exist between SoX and the enforcement of the FCPA. Finally, suggestions to modify the punishment for companies found guilty of committing bribery are also presented.

Comments

Journal of Applied Business Research is an open access journal (CC-BY 3.0)

Mario Mililli is a graduate research assistant in the John Welch College of Business at Sacred Heart University.

DOI
10.19030/jabr.v28i6.7329
Creative Commons License
Creative Commons Attribution 3.0
Citation Information

Cascini, K., Delfavero, A., & Mililli, M. (2012). The Sarbanes Oxley Act's contribution to curtailing corporate bribery. The Journal of Applied Business Research, 28(6), 1127-112. doi: 10.19030/jabr.v28i6.7329