Self-Reporting and the Uncertain Enforcement of the Foreign Corrupt Practices Act
Response to Peter R. Reilly, Incentivizing Corporate America to Eradicate Transnational Bribery Worldwide: Federal Transparency and Voluntary Disclosure Under the Foreign Corrupt Practices Act
Professor Reilly’s thesis, while straightforward, is predicated on an implicit assumption that uncertainty in FCPA enforcement is undesirable. Professor Reilly makes a compelling argument that when the misconduct has already taken place, the defendant company may choose not to self-report the misconduct if the benefits of self-reporting are unclear. But from an ex ante point of view, the uncertainty surrounding the benefits of self-reporting, along with uncertainty in FCPA enforcement in general, may indeed induce potential defendant companies to comply with the FCPA in the first place. Read more.