The first reported case of corporate foreign corruption dates
back to the 16th century, when the British East India Company
bribed Mogul rulers with "rare treasures, including paintings,
carvings and costly objects made of copper, brass and stone"
in consideration of a tax break on exports.1
Historically, these practices were seen as an essential aspect of
doing business abroad, or "as a kind of grease to move
economic machinery along when there were bureaucratic
obstacles."2 Thus, foreign corruption became a
well-entrenched profitable practice, which was even welcomed by
shareholders of early multinationals.3
However, "a serious foreign policy
problem"4 emerged for the United States in the wake
of the Watergate scandal, when investigations by the Securities and
Exchange Commission ("SEC") revealed "slush
funds" that were used by US corporations to bribe foreign
public officials in order to secure business.5 The
ensuing adoption of the US Foreign Corrupt Practices
