CFA Sustainable Investing Certificate Practice Exam 2025 – Complete Study Resource

Anti-corruption practices are often subject to extraterritorial legislation because many countries have enacted laws that apply to their corporations and citizens conducting business abroad. This includes regulations such as the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, which prohibit bribery and corruption in foreign countries regardless of where the conducting party is based. These laws aim to promote ethical behavior in international business dealings, reinforcing the expectation that companies adhere to anti-corruption standards regardless of jurisdiction.

While employee health and safety, supplier payments, and lobbying activities can be influenced by local laws in various regions, they typically do not carry the same universal reach when it comes to enforcing ethical behavior across borders in the way that anti-corruption laws do. Thus, anti-corruption measures stand out as being specifically designed to operate on a global scale, highlighting the importance of compliance for companies operating internationally.