Sebastian is developing an anti-corruption program for his employer, which is a large multinational fashion...

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Accounting

Sebastian is developing an anti-corruption program for his employer, which is a large multinational fashion corporation, based in the United States. To date, his employer does not have an anti-corruption policy. During his audit of the company's records as part of his project, he discovers that a subsidiary of the company has been paying bribes to government officials in a foreign country to enable the imporation of the company's products without the proper paperwork or inspections.

Sebastian knows that paying bribes is illegal under the Foreign Corrupt Practices Act (FCPA). Sebastian's employer has not been "caught" yet, and there is no indication that the U.S. Department of Justice knows anything about this activity. Indeed, Sebastian believes that his employer is above suspicion, due to its excellent and long-standing business reputation.

However, Sebastian is also aware of a recent case involving a different company, where the United States did not enforce the FCPA, even though an employee of that company bribed a foreign government official. The reason that the government did not prosecute the case was because the company had established an extensive anti-corruption policy and had cooperated fully with the investigation.

If he reports the illegal activity that he has discovered, his company could be prosecuted and face grave consequences, including paying damages and facing loss of business. Or, he could keep quiet and hope that no one finds out about the bribery.

What should Sebastian do? Why?

To receive full credit analyze the question fully by using all of the facts provided, presenting your advice for Sebastian as well as the reasoning (the why) behind your advice, and addressing the pros and cons of your choice.

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