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Case Application 3A Dirty Little Secret Money Secrecy. Foreign officials. "Greasing palms." Bribery.88 That's the dirty little secret bbout doing business globally that managers at multinational companies don't want to talk about. It's illegal for U.S.companies to bribe foreign officials, as the Foreign Corrupt Practices Act (FCPA) states The FCPA resulted from Securities and Exchange Commission investigations in the 1970s in which more than 400 U.S.companies admitted to making questionable payments (some $300 million) to foreign government officials, politicians, and political parties. One major example Lockheed officials who paid foreign officials to favour their company's products. The FCPA, which prohibits bribery of foreign officials, was meant to re-establish the public's trust in the honesty and reliability of American businesses. With the passage of the FCPA, the United States became the first country to explicitly outlaw the practice of bribery. Canada followed suit in 1999 with the Corruption of Foreign Public Officials Act (CFPOA), ratifying the OECD Convention on Combating Bribery of Foreign Public Officials However, managers at the world's largest retailer were sent reeling by allegations of bribery in Mexico to accelerate the company's expansion there. An investigation by a reporter for the New York Times claimed that Walmart's Mexican subsidiary paid $24 million in bribes to local officials to speed up the granting of permits to open new stores. The investigation also alleges that when evidence of the bribery's vast scope was presented to senior management in the United States, they shut down the probe. As the scenario unfolded, however, the company's board of directors reported that the audit committee was "examining possible violations of the Foreign Corrupt Practices Act and other alleged crimes or misconduct in connection with foreign subsidiaries. This was the first public disclosure by Walmart that the internal inquiry could possibly involve additional subsidiaries In November 2013, because of the ongoing bribery investigation, the company replaced its CEO and President Mike Duke and named Doug McMillon as his replacement. In addition, it was announced that Walmart Stores Inc. would be paying for lawyers to represent more than 30 of its executives involved in the investigation, a number that experts say shows the extent of the federal probe. Though the initial probe found little misconduct in Mexico in 2015, the United States Department of Justice continued its investigation though to 2017 as new allegations surfaced.89 Walmart's stockholders also tried to launch a civil suit against the company for concealing the corruption 2. We've said it's important for managers to be aware of external environmental forces, especially in global settings. Discuss this statement considering the events described