To Bribe or Not to Bribe?

Case Summary

Ethics

Legality

Similar Cases

Real World

Lessons Learned

Starnes-Brenner Machine Tools Company

Wants more international presence

Latino-Fictional South American Country

Frank-10 years of success

Retiring

Bill-Young, motivated, rising star

Replacing Frank

Conflict between Frank & Bill

Frank plays by Latino “rules”

Franks pays mordidas (Bribe money) to get equipment passed by government officials

States business will fall without the payment of mordidas

Bill follows a more strict sales style

Bill absolutely opposes the idea of mordidas

States business will be successful without paying mordidas.

Bill believes its unethical

Own personal beliefs as well as refusing to break US laws

Franks sees nothing wrong with it

Believes they are not encouraging bribery to spread but rather just accepting the Latinos ways of doing business

Foreign Corrupt Practices Act (FCPA)

US law prohibits any types of payments to a foreign official that will influence an act or decision to obtain an unfair advantage

Halliburton’s Kellogg Brown & Root

Subsidiary, as well as 3 other companies are suspected of having paid a $180 million bribe to the former government of Nigeria in order to build a liquefied-natural-gas plant

Valued at $4 billion to $6 billion

Other companies are from France, Italy, and japan

Salt Lake City Organizing Committee accused of bribing the International Olympic Committee

Dinners

Paid tuition

Help or Aid?

Bribery occurs all the time

Most goes unnoticed

3rd world countries are most taken advantage of

Usually have easily corrupted governments

Bribery takes different forms, why are some accepted and some not

Political Action Committees (PAC’s)

Success under Frank’s vision

The only one that works

Success under Bill’s vision

Better used elsewhere

Are all ethics the same?

Know how different markets react to different style selling techniques

Know the do’s and don’ts

Frank’s act is ethical or unethical?

Difference b/w both bribe?

Payment of bribes lubrication or extortion?

In which method USA done bribe?

In which method Latino done bribe?

If frank pay no bribe?

SCR (Self Reference Criterion)

Bill’s Thinking about Latino Bribe?

Ethical to pay dock workers head.

Unethical to pay Gefe (Government official)

Difference b/w both bribe?

•Bribe to the Dock workers •Bribe to the Government official.

Payment of Bribe Extortion

Payment of Bribe Not lubrication

In which method done bribe?

•In USA Bribe is hide•In Latino Bribe is openly done.

Sales decrease

Revenue decrease

SCR (Self Reference Criterion)

Frank think that he is doing bestIgnore the policy of company

Working with in honest way

Provide good machinery tools

Samiullah

Student of Business Administration Department

University of Sargodha

Contact # 0300-6117262

Email: ranasami247398@gmail.com