Conflict of Interests in Foreign Countries

Conflict of interests, notions of impropriety, and corruption are common ethical concerns that firms deal with when reviewing their relationship with public officials. This paper analyzes these ethical considerations and the legal implications they impose on Castle & Cooke due to their foreign subsidiary's activities. 

The foreign subsidiary employee who wants to serve as both a public official and employee of Castle & Cooke exposes himself to conflicts of interest. A conflict of interest arises when a public official has interests in private matters that affect their official duties' performance. Within the US, the federal ethics laws, 1978 Ethics in Government Act and 1989 Ethics Reform Act bar public officials from earning more than a set amount from private practices, setting up fiduciary relationship contracts, or using public office for private gain (US DOI, 2020). These laws apply to US officials, and, therefore, the continuance of the foreign employee may not violate any US ethical laws. 

However, the general principles of conflicts of interest and impropriety regulated by the above Acts should be avoided by Castle & Cooke. Related legal concerns may arise as a result of these unethical misdeeds. Suppose the employee's public position is used to confer any undeserved favor for the contract of supply for goods or services in the country to the government or other third parties. In that case, Castle & Cooke may be liable for corruption under the 1977 Foreign Corrupt Practices Act (US SEC, 2017). The company may be disbarred from federal contracting, be fined, and its staff may receive criminal sanctions. 

References

US DOI. (2020, May 19). Government - Wide ethics laws. U.S. Department of the Interior.  https://www.doi.gov/ethics/government-wide-ethics-laws#:~:text=These%20laws%20apply%20to%20all,Part%202635

US SEC. (2017, February 1). Spotlight on Foreign Corrupt Practices Act. SEC.gov.  https://www.sec.gov/spotlight/foreign-corrupt-practices-act.shtml