At a Glance

  • The United States slipped in a global ranking of public-sector corruption perceptions released by Transparency International, which also raised questions about the ethical standards adopted by the Supreme Court.
  • "After a series of high-profile and widely publicized ethics scandals, the Supreme Court adopted a new code of ethics in 2023, but serious questions remain about the lack of meaningful, objective enforcement mechanisms and the inadequacy of the new rules themselves," the anti-corruption watchdog said in a report.
  • Transparency International said the United States fell to 28th place last year from 24th in its Corruption Perceptions Index covering 180 countries, trailing France, Taiwan, and Barbados. Denmark's public sector was considered the least corrupt, ranking first in the index. The index is based on 13 different assessments of public-sector corruption by institutions such as the World Bank and the World Economic Forum.

In-Depth Insights

The decline in the United States' global anti-corruption perception ranking came before President Donald Trump signed an executive order last week suspending enforcement of the Foreign Corrupt Practices Act (FCPA), which prohibits businesses operating in the U.S. from bribing foreign officials.

Under the order, the Justice Department will pause prosecutions of executives accused of bribing foreign officials, review past actions taken under the FCPA, and prepare new enforcement guidelines.

"American companies have been harmed by over-enforcement of the FCPA because they have been barred from engaging in practices common among international competitors, creating an uneven playing field," the Trump administration said in a statement after the order was signed on February 10.

Trump described the suspension of the FCPA, enacted in 1977, as a dual benefit for U.S. competitiveness and national security.

"This will mean more business for America," he said when signing the order.

However, Gary Kalman, executive director of Transparency International U.S., said the order could raise questions about U.S. companies' commitments to avoiding bribery and increase pressure on executives to engage in unethical behavior.

"On the global stage, this is likely to raise questions about how U.S. companies operate overseas," Kalman said Thursday. "Even honest companies that win contracts based on performance will face questions about how they obtained them."

Additionally, executives "may face increased pressure to engage in corrupt practices," he said in an email responding to questions.

Finally, foreign regulators may slow stricter enforcement, Kalman said.

"Other countries had begun to strengthen their enforcement of foreign anti-bribery laws," he noted. "They don't want the U.S. to regulate their businesses."

"I think we may see a weakening of the global trend toward more consistent enforcement," Kalman said.

The Trump administration said the Justice Department and the Securities and Exchange Commission brought 26 FCPA-related enforcement actions last year. At least 31 companies were under investigation as of the end of 2024.

The Trump administration said federal officials launched an average of 36 FCPA enforcement actions annually over the past decade, "draining resources from American businesses and law enforcement."

However, according to the Stanford Law School FCPA Clearinghouse, nine of the ten companies facing the highest penalties under the FCPA are headquartered abroad. These nine companies have paid fines totaling more than $12.8 billion.