A Foreign Way of Doing Business?

Are business practices universal?

There are countries with bureaucracies so corrupt that it’s said to be impossible to license a car or pull a building permit without the greasing of many palms.

American companies seeking to do business in these countries — in any country in fact — are under the jurisdiction of the Foreign Corrupt Practices Act (FCPA) of 1977, which applies American law, and perhaps even American morality, to overseas commerce. In a nutshell, the law states that Americans can be prosecuted at home for bribery abroad.

On its face the FCPA seems righteous, responsible and correct. It promotes honesty and fair practice, even in nations that can’t or won’t promote these things for themselves. And it ensures that American businesses represent our country and our way of life in the best light possible.

But couldn’t it be that the FCPA is hamstringing American commerce, especially when we’re competing against economic powers operating under no such strictures? If there are truly places where business is impossible without graft, aren’t we effectively closing those territories to American businesses by holding them to the FCPA?

You might recall the recent Walmart controversy, wherein the retailer was accused of FCPA violations while operating in Mexico. This case might seem cut and dry, but the question begs: could Walmart have operated at all in Mexico, without those bribes?

We like to think morality is absolute. It would be nice if that were so. But ideals of fair business practice are clearly not universal, or at least they’re not universally enforced. We have to wonder if our moral high ground, as enshrined in the FCPA, isn’t ultimately self-defeating.

The C4:

1. The FCPA was enacted in 1977 to prevent American businesses from engaging in corrupt practices abroad.
2. Walmart has recently been accused of FCPA violations for bribing Mexican officials.  
3. We wonder if adherence to the FCPA doesn’t put American companies at a disadvantage, when competing against companies and nations who obey no such laws.
4. This is a distressingly gray area and we’d love to hear your opinion: should morality be absolute, or should we afford our businesses the leeway necessary to compete?

Is Healthcare At The Crossroads?

Emerging decisions will impact you and everyone you know.

Whether you call it Obamacare or the Affordable Health Care for America Act; whether you’re a supporter or a detractor; and whether you’re an employer, an employee or even unemployed, the healthcare reform law is bound to have significant impact on your life.

Its second anniversary was Friday, March 23. And on Monday, March 26, the U.S. Supreme Court began deliberating its fate. The most contentious provision — the individual mandate that would force all Americans to buy insurance or pay a penalty — will be the Constitutional lynchpin that the high court, in all likelihood, will vote up or down.

The arguments are clearly drawn, which is surprising for such a complex law — most of which hasn’t even gone into effect yet. Does the Commerce Clause (Article 1, Section 8, Clause 3 of the U.S. Constitution) empower the federal government to require citizens to purchase specific goods or services — in this case, health insurance?

If the Court says no, it might choose to sever the individual mandate, leaving the rest of the law intact. The danger there is self-evident: the uninsured will have no incentive to purchase health insurance until they actually need it. The law’s system of affordable health-insurance exchanges, in that scenario, becomes unsustainable.

But healthcare prior to the law’s passage was likewise unsustainable, with 20% of our population without health insurance coverage of any kind. Annually, the uninsured consume more than $100 billion in healthcare services, with more than $60 billion of those costs going unpaid.

Healthcare and politics have become inextricably linked. It’s already a hot-button issue for the next election, and will only become more fraught after the Supremes hand down their decision.

So it’s all too easy to forget what’s at stake: our economy, and maybe our future viability as a society. If Obamacare isn’t the answer, then what is?

We need to know. Share your thoughts below.

The C4:

1. The Affordable Health Care for America Act was signed into law by President Obama on March 23, 2010. To date it has outlawed exclusion by insurers for pre-existing conditions and has allowed children to stay on their parents’ policies up to age 26. Its most contentious requirement, the individual mandate, is not scheduled to go into effect until 2014.
2. The Supreme Court will hear six hours of arguments on the law, which began on March 26.
3. Opponents maintain that the government has no power to force private citizens to purchase health insurance. The administration argues that since we’re all consumers of healthcare services, the Commerce Clause grants precisely that power.
4. In either case, the costs of providing healthcare to all Americans are unsustainable.