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  • Minimum Wage Debate

    Protesters gather in front of a McDonald's in New York City The fast-food industry competes by offering low-cost meals. Historically, fast-food employees have been low-payed teenagers. Today, especially since the great recession, many fast-food employees are adults. Thus, the fast-food industry is a target of labor organizers, such as the Service Employees International Union , to increase wages. Protests to push for higher wages took place across the United States Thursday, December 6. The protesters called for pay of $15 per hour. The United State Department of Labor states, "The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA) . Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages." Thus the minimum wage is set by the government, not by the employer. The National Restaurant Association, an industry lobbying group, said in a statement that the demonstrations were a coordinated public-relations campaign “engineered by national labor groups where the vast majority of participants are activists and paid demonstrators; relatively few restaurant workers have participated in the past.” Scott DeFife, the NRA’s executive vice president for policy and government affairs, stated, “Dramatic increases in a starting wage such as those called for in these rallies will challenge that job-growth history, increase prices for restaurant meals, especially in the value segments, and lead to fewer jobs created. Business owners already face great uncertainty due to a lack of a clear economic plan from Washington and the health care law’s implementation. Calls to double the minimum wage only intensify the challenges faced by job creators.” Who should set wages? The business or the government? Explain.
  • JFK and Consumer Bill of Rights

    Today, November 22, 2013, the United States marks the 50th anniversary of the assassination of President John F. Kennedy with memorial ceremonies and moments of silence. In 1962, President John F. Kennedy said in a message to Congress, "Consumers, by definition, include us all. If consumers are offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may by threatened, and the national interest suffers." Furthermore, he announced his consumer bill of rights. Consumer Bill of Rights The right to safety : to be protected against the marketing of products and services that are hazardous to health or to life. The right to be informed : to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts needed to make informed choices. The right to choose : to have available a variety of products and services at competitive prices. The right to be heard : to be assured that consumer interests will receive full and sympathetic consideration in making government policy, both through the laws passed by legislatures and through regulations passed by administrative bodies. The right to education : to have access to programs and information that help consumers make better marketplace decisions. The right to redress : to work with established mechanisms to have problems corrected and to receive compensation for poor service or for products which do not function properly. Since the 1960's, increasing consumer rights have been added by statute and by proclamation. You can see a list of laws in food and drug law history at the Food and Drug and Administration (FDA). The Federal Trade Commission (FTC) is one of the federal agencies charged primarily with protecting consumer rights. The provides information for filing a complaint, being a smart shopper, understanding credit, and more. Managers need to know the laws. But, managers need to serve the customer. Would consumer protection laws be needed if businesses served the customer?
  • Jamie Dimon Is No Longer Chairman Of JPMorgan Chase Banking Unit

    Jamie Dimon CEO, JPMorgan Chase (Source: Wikipedia ) Jamie Dimon just lost his job as Chairman Of JPMorgan Chase Banking Unit, the nation’s largest bank. According to Mark T.Williams , a former Federal Reserve Bank examiner who teaches risk-management at Boston University School of Management, and author of Uncontrolled Risk about the rise and fall of Lehman Brothers, since Dimon became Chairman and CEO in 2005, JPMorgan Chase has had the following problems. Questionable mortgage practices $6 billion “London Whale” trading scandal Bribery of Chinese officials Shoddy debt collection practices Libor-fixing probe Violations of the federal mortgage insurance program Charging credit-card customers for services never received Manipulation of western electricity markets Compliance weaknesses in money laundering controls Settlement relating to client money taken by MF Global Potential damaging link to financial criminal Bernie Madoff Ben Heineman,a senior fellow at Harvard's Law and Kennedy Schools, in his blog post states , "at the end of the day, it is bank leaders and employees who must take the right business, legal and ethical actions under existing law." He then goes on to ask, "Are these huge major financial institutions not just too big to fail, their leaders “too big to jail” (as some critics charge), but also “too big to manage”? Why haven't the bank managers made the right ethical decisions? Are big banks, like JPMorgan Chase, unmanageable? What might happen to the economy the next time a big bank crashes?
  • The Affordable Care Act

    On October 1st, anyone can go to and use the new Health Insurance Marketplace to see all of the health plans available in an area and sign up for one. Also, anyone can find out if they are eligible to pay less for private health insurance or whether they qualify for other free or low-cost programs. Attached is a report discussing how affordable insurance will be. Find your state's Marketplace premiums at . What is the Affordable Care Act and what does it mean for a company and its employees?
  • Foreign Corrupt Practices Act Quiz

    Managers and employees of global operations must be familiar with the Foreign Corrupt Practices Act (FCPA). It is illegal to accept or offer a bribe. How well do you know the Foreign Corrupt Practices Act (FCPA)? Take this quiz, published by the Wall Street Journal . It was adapted from guidance published by the Justice Department and the SEC. 1. Gas Corp. is a large energy firm based in New York and listed on the New York Stock Exchange. It enters into a joint venture with a private European company, Euro Gas Ltd., to bid on a contract to develop an oil field in Nigeria. Senior vice presidents at Gas Corp. and Euro Gas meet in New York and decide to hire a consultant, Middleman Inc., to funnel payments on the joint venture's behalf to a deputy oil minister with influence over the bidding process. The payments are invoiced as consulting fees, but Middleman Inc. passes most of the money to the deputy minister. The joint venture wins the contract. Which entities are liable under the FCPA? A) Gas Corp. B) Gas Corp. and Euro Gas C) Middleman Inc. D) All of the above Answer: All of the above. Gas Corp. is both based in the U.S. and listed on a U.S. stock exchange, either of which means it is bound by the FCPA. Euro Gas is liable because its executives made the decision to pay the bribe while they were in New York. And Middleman Inc., even though it never took any actions in the U.S., could be charged with conspiring with the other two companies to violate the FCPA. (Euro Gas could be charged in the same conspiracy, even if its executives had never stepped foot in New York.) *** 2. At a trade show in Shanghai, Widgets Co., a Kansas City, Mo., company that wants to expand its presence in Asia, invites current and prospective customers out for drinks and pays the bar tab. Those invited include midlevel executives at companies owned or controlled by the Chinese government. Is this a violation of the FCPA? Answer : No, the FCPA doesn't prevent companies from promoting their businesses or providing legitimate hospitality. However, be mindful that the Justice Department and the SEC consider employees of state-owned enterprises to be foreign officials, meaning it is illegal to bribe them under FCPA. *** 3. After drinks, Widgets Co. executives invite executives at one of China's state-owned utility companies to the U.S. to talk about a lucrative contract with the utility on which the American firm is bidding. Widgets pays for the officials to fly first class with their spouses to Las Vegas and puts them up in a casino hotel for a week before meeting with the Chinese executives on the final day of the trip to discuss the contract. Is this a violation of the FCPA? Answer: Yes. The trip can barely be said to have a legitimate business purpose. It is extravagant and clearly meant to curry favor with the Chinese executives, who have influence over whether Widgets wins the contract. *** 4. Mining Corp., a mining company listed on the New York Stock Exchange, just identified a new mineral deposit in Afghanistan. The company needs to build a road from the deposit to a nearby port and hires a local agent to help it secure the necessary permits from Afghan authorities. The agent informs Mining Corp.'s international vice president that he plans to make a one-time small cash payment to an Afghan clerk, so the clerk will stamp and file the permit applications quickly. In the past, the clerk has sat on such applications for months. The vice president authorizes the payment. Does the payment violate the FCPA? Answer : No. The FCPA contains an exception for "facilitating payments"-a euphemism for grease bribes-that are paid to obtain a routine service. In other words, Mining Corp. is paying the clerk to do something the clerk is supposed to do-file applications for permits. A note of caution, however: Facilitating payments may be illegal in the country in which they are paid, and they have to be recorded accurately in a company's books and records. *** 5. A few months later, the agent tells Mining Corp.'s vice president that he can't get an environmental permit for the road because the planned route would cut through protected wetlands. Mining Corp. could build the road around the wetlands for about a million dollars more. Or, the agent says, the company could make a $3,000 cash payment to the director of the country's natural-resources department, who in return will sign the permit so the road can be built on the wetlands. The vice president authorizes the payment. Is this a violation of the FCPA? Answer: Yes. The payment is clearly designed to influence the director, a foreign official, into using his power improperly. Unlike the clerk, the director has discretion to approve or reject the application. Your score 5 out of 5 : You're practically a compliance officer. 4 out of 5 : Your company provides good FCPA training. 3 out of 5 : You ignored your company's FCPA training. 2 out of 5 :...
  • Food Labeling, the Law versus Self-Regulation

    Urvashi Rangan, director of the Consumer Safety and Sustainability Group for Consumer Reports , presented “Modern Food Labels — The Good, the Bad, the Ugly and Why We Need Them” at the Harvard Food Law Society ’s second annual conference, “Putting the Label on the Table.” The graphic below depicts nutrition facts required by law on a label. Consumers want more information on labels, but the law (FDA) does not require it. Companies want to be proactive and self-regulate. What should managers do to achieve the "perfect food label"?
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  • Keep Sponsored Stories and Promoted Tweets Legal

    The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. Managers need to know the FTC's new rules for " Dot Com Disclosures ." The new rules emphasize that consumer protection laws apply equally across all mediums, whether delivered on a desktop computer, a mobile device, or more traditional media such as television, radio, or print. The new guidance also explains that if an advertisement without a disclosure would be deceptive or unfair, or would otherwise violate a Commission rule, and the disclosure cannot be made clearly and conspicuously on a device or platform, then that device or platform should not be used. Brian Heidelberger is partner and chair of Advertising, Marketing, and Entertainment Law of Winston & Strawn. In this video, he explains the new rules. Why does a hashtag not equal disclosure?
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  • McDonald's Around the World

    McDonald's - Around the World from PosterBoy Edit on Vimeo . McDonald's has a strong identity around the world, as shown in this commercial. People in almost every country recognize the name. McDonald's legally protects its name or trademark to ensure consistent communications inside and outside the company, around the world. (See the " Global Logo and Trademark Standards Reference Guide " from 1999.) Why would McDonald's create a reference guide for its logo and trademark standards? How does McDonald's define trademark in the 1999 reference guide? What has changed about its trademark since 1999?
  • OSHA and Employee Rights

    No manager wants employees to be hurt on the job. Thus, most companies want to improve safety and reduce accidents and injuries. But accidents and fatalities occur. Occupational Safety and Health Administration (OSHA) is the federal agency responsible for workplace safety. The mission of OSHA is to save lives, prevent injuries, and protect the health of America's workers. Employee rights under OSHA include the right to a workplace free of hazards, receiving training, access to injury/illness and medical records, complaining to your employer or OSHA about a safety and health problem, participating in an OSHA inspection, and participating or testifying in any proceeding related to an OSHA inspection. Workplace hazards include toxic substances, electrical hazards, fall hazards, hazardous waste, machine hazards, infectious diseases, fire and explosion hazards, and dangerous atmospheres. Regardless of the unsafe condition, employees are not protected if they simply walk off the job. REFUSING WORK IS PROTECTED IF: Your right to refuse to do a task is protected if ALL of the following conditions are met: Where possible, you have asked the employer to eliminate the danger, and the employer failed to do so; and You refused to work in "good faith." This means that you must genuinely believe that an imminent danger exists. Your refusal cannot be a disguised attempt to harass your employer or disrupt business; and A reasonable person would agree that there is a real danger of death or serious injury; and There isn't enough time, due to the urgency of the hazard, to get it corrected through regular enforcement channels, such as requesting an OSHA inspection. CONDITIONS ARE MET, NEXT STEPS: When all of these conditions are met, you take the following steps: Ask your employer to correct the hazard; Ask your employer for other work; Tell your employer that you won't perform the work unless and until the hazard is corrected; and Remain at the worksite until ordered to leave by your employer. The table below offers a few "IF/THEN" scenarios to follow. IF THEN You believe working conditions are unsafe or unhealthful. Call your employer's attention to the problem. Your employer does not correct the hazard or disagrees with you about the extent of the hazard. You may file a complaint with OSHA. Your employer discriminates against you for refusing to perform the dangerous work. Contact OSHA immediately. Source: Most employers want to prevent injuries on the job. Common methods used to prevent injuries include training and maintenance of machinery and equipment. But, both cost money. Hidden costs might include loss of production time, loss of equipment, retraining of new employees, and lower morale. What other costs might exist?
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  • Railway Labor Act

    Source: The Allied Pilots Association (APA), the union for American Airlines pilots, has decided to hold a strike vote . American Airlines is in the midst of bankruptcy proceedings, and the pilots are not happy. American Airlines was allowed to void its existing contract with the APA. A strike allows the union to have power by forcing the employer to cease operating. But airlines come under the Railway Labor Act (RLA), a major labor law. It was passed in 1926 to avoid any interruption of interstate commerce and to protect railway employees and union members from the actions of their employers. In 1936, the RLA was expanded to include airlines. It is very difficult for an airline union to go on strike legally. Furthermore, the strike can't happen until management and labor go through mediation overseen by the National Mediation Board (NMB). In mediation , a neutral third party acts as go-between in offering suggestions and gaining concessions that will enable a deadlock to be resolved. Under the RLA, the steps in the mediation process include: talks come to an impasse, binding arbitration has been proffered to the two sides, one party has declined the proffer, the mediation board calls for a 30-day cooling-off period, and the 30 days expires without an agreement. Thus, before the pilots can strike, the NMB would first have to release the union and the airline from further mediation and start a 30-day colling-off period. Strikes are the most powerful tactic in a union's bargaining arsenal. A strike by pilots would cause fliers to find alternative travel arrangements. How would this action help customers? Do you think the NMB will allow the pilots to strike in the midst of American's bankruptcy proceedings?
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  • Top Ten Consumer Complaints

    The Consumer Federation of America (CFA) and the North American Consumer Protection Investigators (NACPI) surveyed 38 agencies across the United States about complaints they received in 2011. Top Ten Complaints Auto: Misrepresentations in advertising or sales of new and used cars, lemons, faulty repairs, leasing and towing disputes Credit/Debt: Billing and fee disputes, mortgage modifications and mortgage-related fraud, credit repair, debt relief services, predatory lending, illegal or abusive debt collection tactics Home Improvement/Construction: Shoddy work, failure to start or complete the job Retail Sales: False advertising and other deceptive practices, defective merchandise, problems with rebates, coupons, gift cards and gift certificates, failure to deliver Utilities: Service problems or billing disputes with phone, cable, satellite, Internet, electric and gas service Services: Misrepresentations, shoddy work, failure to have required licenses, failure to perform (Tie) Internet Sales: Misrepresentations or other deceptive practice, failure to deliver online purchases; Landlord/Tenant: Unhealthy or unsafe conditions, failure to make repairs or provide promised amenities, deposit and rent disputes, illegal eviction tactics Fraud: Bogus sweepstakes and lotteries, work-at-home schemes, grant offers, fake check scams, the grandparent scam and other common frauds Real Estate: Timeshare sales and resales, retirement communities and assisted living facilities, real estate fraud (Tie) Household Goods: Misrepresentations, failure to deliver, faulty repairs in connection with furniture or appliances; Home Solicitations: Misrepresentations or failure to deliver in door-to-door, telemarketing or mail solicitations, do-not-call violations The report offers general tips for consumers about how to avoid scams and rip-offs at . In general, to avoid problems, consumers should check the backgrounds of service providers and review the ratings of products. Choose one of the top ten complaints, and read the CFA suggestions on how to avoid scams and rip-offs in that area. If you were the manager in one of those businesses, what could you do to lessen complaints?
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  • Do Not Track

    Companies collect a vast amount of personal and financial data from online and offline sources about consumers. When someone visits a Web site or makes a purchase a "cookie," or digital marker, is dropped on the user's computer. That profile is matched with offline data like what type of credit card a person has, what products are purchased, and what type of car he or she drives. Then that person will receive specific ads based on where he or she lives (zip code), the Web sites visited, purchasing habits, and personal preferences. Consumers have little control over the data being collected. Watch the video at . In its March 2012 report on Internet privacy, the Federal Trade Commission (FTC) recommended that companies provide a "Do Not Track" mechanism, which allows consumers to opt out of having their online behavior monitored and shared. The report calls on companies handling consumer data to implement recommendations for protecting privacy, including: Privacy by Design - companies should build in consumers' privacy protections at every stage in developing their products. These include reasonable security for consumer data, limited collection and retention of such data, and reasonable procedures to promote data accuracy; Simplified Choice for Businesses and Consumers - companies should give consumers the option to decide what information is shared about them, and with whom. This should include a Do-Not-Track mechanism that would provide a simple, easy way for consumers to control the tracking of their online activities. Greater Transparency - companies should disclose details about their collection and use of consumers' information, and provide consumers access to the data collected about them. Who has your information? Where is it going next? How can you find out what information companies have about you or if it's correct? Why should companies be concerned about the issue of consumer privacy?
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  • Management Conduct Contrary to Policies at Best Buy

    Richard Schulze founded Best Buy, but is stepping down as chairman after a company inquiry found that he failed to reveal the CEO's relationship with a female employee. CEO Brian Dunn resigned last month for violating Best Buy's policy . He had an inappropriate ("close personal") relationship with a female subordinate. The female employee was much younger than the CEO, according to reports. The Associated Press reported , "The company probe found that although Dunn did not misuse company resources or aircraft related to the relationship, he and the employee were in significant contact for no identifiable business purpose. For example, during one four-day and one five-day trip abroad in 2011, the CEO contacted the female employee by cell phone at least 224 times, including 33 phone calls, 149 text messages, and 42 picture or video messages." Problems affect productivity. Both Schulze and Dunn forgot that company policies, procedures, and rules are important. They are written to take care of problems which occur again and again. Companies have an incentive to implement and enforce strong policies prohibiting harassment and effective complaint procedures. Furthermore, employees have an incentive to alert management about harassment before it becomes severe and pervasive. The " Facts About Sexual Harassment " below is from the U.S. Equal Employment Opportunity Commission (EEOC). Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964 . Title VII applies to employers with 15 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment. Sexual harassment can occur in a variety of circumstances, including but not limited to the following: The victim as well as the harasser may be a woman or a man. The victim does not have to be of the opposite sex. The harasser can be the victim's supervisor, an agent of the employer, a supervisor in another area, a co-worker, or a non-employee. The victim does not have to be the person harassed but could be anyone affected by the offensive conduct. Unlawful sexual harassment may occur without economic injury to or discharge of the victim. The harasser's conduct must be unwelcome. It is helpful for the victim to inform the harasser directly that the conduct is unwelcome and must stop. The victim should use any employer complaint mechanism or grievance system available. When investigating allegations of sexual harassment, EEOC looks at the whole record: the circumstances, such as the nature of the sexual advances, and the context in which the alleged incidents occurred. A determination on the allegations is made from the facts on a case-by-case basis. Prevention is the best tool to eliminate sexual harassment in the workplace. Employers are encouraged to take steps necessary to prevent sexual harassment from occurring. They should clearly communicate to employees that sexual harassment will not be tolerated. They can do so by providing sexual harassment training to their employees and by establishing an effective complaint or grievance process and taking immediate and appropriate action when an employee complains. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on sex or for filing a discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under Title VII. Dating a co-worker has resulted in the Best Buy CEO losing his job. Not sharing the information with the board has resulted in the chairman of Best Buy's board losing his position. Do you think any others at Best Buy knew the CEO and employee had a relationship? If so, do you think there was office gossip? Could employees see this relationship as a sign of favoritism? Should the CEO fear blackmail, the possibility that she would accuse him of hierarchical harassment or blackmail?
  • Fired by email

    All employees at the asset-management unit of Aviva PLC, Britain's second-largest insurance company, were mistakenly sent an email which said , 'I would like to take this opportunity to thank you and wish you all the best for the future.' Many of the employees thought that they had just been fired by email. This story became news around the world. In reality, the employee was not fired by email, but had been laid off and the email was a follow-up message. Quickly, the manager realized what had happened and recalled the email. An apology email was sent. The costs - both human and financial - of a poorly handled termination can be extremely high. The rise in wrongful termination suits is due, at least in part, to mismanagement of the termination process. When asked, many terminated employees report that they sued their former employer because of the way they were treated, rather than for any financial gain. Regulations that apply to termination include: Age Discrimination in Employment Act Americans with Disabilities Act (ADA) Civil Rights Act Title VII, Civil Rights Act of 1991 Fair Labor Standards Act Family and Medical Leave Act Immigration Reform and Control Act National Labor Relations Act (NLRA) Occupational Safety and Health Act (OSHA) Pregnancy Discrimination Act When a terminated employee sues the organization, both parties lose. For the organization, the loss includes legal fees, time and energy of key personnel, internal morale, and external public relations. The terminated employee loses time and energy that could have been directed to the job search. Termination Action Plan Once the decision to terminate an employee has been made, the manager should develop an action plan. A pre-termination planning decision to release an employee, who no longer fits the organization's needs, enhances an organization's development objectives. Schedule the termination as soon as possible. Move as quickly as possible to a termination date. List the resource people (for example, human resources (HR) representative, lawyer, and outplacement consultant) available to provide support or assistance in the termination. A HR representative can outline the terms of the severance. Also, he or she can serve as a witness to what was actually said during the termination conference. An outplacement consultant assists the terminated employee in conducting an effective job search. As a result of this service, outplaced employees make a career transition more rapidly, with less overall stress, and have a distinct advantage over non-outplaced job seekers. The organization benefits from reduced severance packages, reduced likelihood of lawsuits, maintenance of morale and productivity of remaining employees, and increased community support for the actions of the organization. Outline the primary reasons for the termination. Explain the reasons for the termination clearly, concisely, and candidly. In addition to performance issues, reasons for the termination might include change in strategic direction, mismatch between skills and job, reorganization, new technology, or change in ownership. Develop a security strategy. If the individual has access to sensitive information, take precautions. For example, change computer passwords and secure documents. Arrange for the individual to separate out, under supervision, personal effects from organization property. Personal effects can be forwarded after a qualified person has had the opportunity to evaluate their contents. Point out that these actions are designed to protect the individual as well as the organization, so that no one can be falsely accused of removing confidential documents. Determine time and location. If the termination is held in the individual's office or in a neutral location, not your office, you can control the length of the meeting and avoid a prolonged discussion or debate. Plan internal and external announcements. Determine how the news will be communicated inside and outside the organization. A formal internal announcement concerning the departure and replacement of the employee is appropriate. Notify key external suppliers and/or customers with whom the individual had regular contact of the individual's replacement. Should employees always be terminated in face-to-face meetings? OR should email be used? Explain.
  • Managers ensure compliance for anti-bribery

    Recent bribery allegations against Wal-Mart in Mexico and Hollywood movie studios in China should remind managers that they are responsible for ensuring that clear anti-bribery policies are in place and that relevant staff at the least receive sufficient training . (See 3M's Anti Bribery Policy for an example.) The Foreign Corrupt Practices Act (FCPA) enacted in 1977 makes it illegal for Americans to bribe foreign officials. A bribe is offering anything of value (money or gifts) to gain a competitive advantage. The Securities and Exchange Commission ("SEC") and the Department of Justice ("DOJ") are jointly responsible for enforcing the FCPA. The SEC brings civil enforcement actions against issuers and their officers, directors, employees, and agents. The DOJ criminally prosecutes issuers and their officers, direc­tors, employees, agents, and domestic concerns, as well as foreign persons and entities (acting within the U.S.). According to the U.S. Department of Justice , The anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person. In this video, Fareed Zakaria reports "How to beat bribery ." India's Chief Economic Adviser, the economist Kaushik Basu, uses a game theory simulation to suggest that "bribery in general will decrease if people who are asked for bribes can pay the money and they can still go and complain without worrying that they will be prosecuted. And the corrupt official who takes the bribe will know that if they take the money they face twice the penalty." Read the attached Investor Bulletin. What is "anything of value"? How is "foreign official" defined? What is an "indirect bribe"? What are the three situations in which payments to foreign officials would not result in liability under the FCPA? What do you think of Basu's way to fight bribery?