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Con-Way, Inc.
Summary of Findings
Lack of Oversight over Emery Transnational
Payments to Philippine Customs Officials
Payments to Officials of Majority State-Owned Airlines
Discovery of Improper Payments and Internal Investigation
Legal Analysis
Questions
Question 1: The FCPA distinguishes between so-called facilitating payments and more serious activities. Do you think such a distinction and the related penalties for violations under the Act make sense from an ethical perspective? Use the utilitarian analysis to support your position.
Question 2: Assume the auditors of Con-way knew about the accounting for FCPA payments in the books and records of the company. Do you think the auditors would be guilty of: (1) ordinary negligence; (2) gross negligence; or (3) fraud? Explain.
Question 3: Given that the FCPA permits facilitating payments, do you believe it is ethically appropriate for companies to deduct such payments from their income taxes? Why or why not? What about outright bribery payments? What does the law require in each instance with respect to tax deductibility?
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