This is a corporate policy document designed to meet the standards of the Foreign Corrupt Practices Act, a provision of the Securities and Exchange Act of 1934. FCPA generally prohibits payments by companies and their representatives to foreign (i.e., non-U.S.) government and quasi-government officials to secure business.
The North Carolina Foreign Corrupt Practices Act (NC CPA) is a corporate policy that aims to prevent and prohibit bribery and corruption in international business transactions. It is a critical legislation for organizations operating in North Carolina and engaging in global business activities. The NC CPA is aligned with the broader federal Foreign Corrupt Practices Act (CPA) but has a specific focus on businesses within the state. The primary goal of the NC CPA is to promote ethical and transparent business practices by controlling the use of bribes, improper payments, and other unlawful acts in dealings with foreign government officials, political parties, and candidates. By complying with the NC CPA, companies can maintain fair competition, enhance their reputation, and establish stronger relationships with business partners and stakeholders. There are different types of North Carolina Foreign Corrupt Practices Act — Corporate Policies that companies can adopt, depending on their size, industry, and specific needs. These policies commonly include: 1. Anti-Bribery and Anti-Corruption Policy: This policy outlines the organization's commitment to complying with the NC CPA, prohibits bribery, kickbacks, and other corrupt activities, and provides guidelines on how to identify, assess, and mitigate corruption risks. 2. Gifts, Entertainment, and Hospitality Policy: This policy establishes rules and limitations on giving or receiving gifts, entertainment, or hospitality to foreign officials or business partners to prevent potential conflicts of interest and undue influence. 3. Third-Party Due Diligence Policy: This policy focuses on conducting thorough due diligence on third-party agents, representatives, consultants, distributors, and other intermediaries to ensure they meet integrity and ethical standards and can help prevent corrupt practices on behalf of the company. 4. Record-Keeping and Accounting Policy: This policy guides the proper recording and documentation of financial transactions to ensure accuracy, transparency, and compliance with the NC CPA's accounting provisions. 5. Training and Communication Policy: This policy emphasizes the significance of educating employees and stakeholders about the NC CPA's requirements, raising awareness on corruption risks, and regularly communicating updates and changes to the corporate policy. 6. Reporting and Whistleblower Protection Policy: This policy encourages employees to report any known or suspected violations of the NC CPA, ensures prompt investigation of allegations, and provides protection to whistleblowers against retaliation. Adherence to the North Carolina Foreign Corrupt Practices Act — Corporate Policy demonstrates a commitment to ethical business conduct, promotes fair competition, and safeguards the reputation of companies operating in North Carolina's global marketplace. By integrating these policies into their operations, organizations can foster a culture of integrity, minimize legal and reputational risks, and contribute to a level playing field in international commerce.
