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Information Availability and Security in Foreign Corrupt Practices Act Investigations

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Information Security (ISSA 2018)

Part of the book series: Communications in Computer and Information Science ((CCIS,volume 973))

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Abstract

Foreign Corrupt Practices Act (FCPA) deals with businesses found guilty of bribing foreign officials. The increasing number of cases and high financial penalties present a growing concern for businesses operating or planning to start operating abroad. The ratings of Transparency International offer an indicator of corruption in countries; however, the analysis shows that this indicator is not correlated with the occurrence of FCPA cases in a particular country. This article proposes that the level of availability and security of information is more important in predicting and potentially preventing the need for FCPA investigations. Using the data of cases filed in 2016–2017, the article discusses how the factors of information availability and security influence the likelihood of FCPA investigation in a country. The article contributes to empirical studies on corruption by focusing on fact-based data on corruption as opposed to perception-based data and shows that these two sets of data do not correlate. The positive correlation between the availability of information and the number of FCPA cases especially in the countries with low GDP suggests that companies can leverage from the availability of information to take action against bribery before it is investigated.

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Notes

  1. 1.

    FCPA group is one or more FCPA cases that share a common bribery scheme, location or time interval.

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Author information

Authors and Affiliations

  1. Control Risks, Culross Court, 16, Johannesburg, 2191, South Africa

    Tetyana Loskutova & Rivaj Parbhu

Authors
  1. Tetyana Loskutova
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  2. Rivaj Parbhu
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Corresponding author

Correspondence to Tetyana Loskutova .

Editor information

Editors and Affiliations

  1. University of Pretoria, Pretoria, Gauteng, South Africa

    Hein Venter

  2. University of South Africa, Florida, Gauteng, South Africa

    Marianne Loock

  3. University of Johannesburg, Auckland Park, Gauteng, South Africa

    Marijke Coetzee

  4. University of South Africa, Pretoria, Gauteng, South Africa

    Mariki Eloff

  5. University of Pretoria, Pretoria, Gauteng, South Africa

    Jan Eloff

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Loskutova, T., Parbhu, R. (2019). Information Availability and Security in Foreign Corrupt Practices Act Investigations. In: Venter, H., Loock, M., Coetzee, M., Eloff, M., Eloff, J. (eds) Information Security. ISSA 2018. Communications in Computer and Information Science, vol 973. Springer, Cham. https://doi.org/10.1007/978-3-030-11407-7_5

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  • DOI: https://doi.org/10.1007/978-3-030-11407-7_5

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-11406-0

  • Online ISBN: 978-3-030-11407-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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