Open Ethics and Law Journal

2015, 1 : 30-37
Published online 2015 April 30. DOI: 10.2174/2352633501501010030
Publisher ID: ETHICS-1-30

RESEARCH ARTICLE
 J.P. Morgan Recruitment Practices in China and the Foreign Corrupt Practices Act: Legal Networking or Illegal Bribery?

Frank J Cavico, *
H. Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University, Ft. Lauderdale, Florida, USA

* Address correspondence to this author at the H. Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University, Ft. Lauderdale, Florida, USA; Tel: 954 262-5096; E-mail: cavico@nova.edu

ABSTRACT

This article examined J.P. Morgan Chase and Company (J.P. Morgan) and its recruitment practices in China pursuant to the U.S. Foreign Corrupt Practices Act (FCPA). Certain key elements of the statute were explicated and illustrated in the context of the bank’s hiring in China. The article found that J.P. Morgan has an arguable defense to legal liability based on the lack of evidence that the bank acted with the requisite “corrupt” intent. The article also provided an examination of the morality of J.P. Morgan’s recruitment practices pursuant to three ethical theories. It was found that the bank was acting morally pursuant to Utilitarianism and Ethical Relativism, but immorally under Kantian ethics. The article supplied general recommendations for companies and specific ones to J.P. Morgan to avoid liability pursuant to the FCPA.

Keywords:

Bribery, China, corrupt intent, ethics, Foreign corrupt practices act (FCPA).