Assume that you’re an- up-and-coming managers in a regional U.S. distribution company. Firms in your industry are just beginning to enter foreign markets, and you`ve been assigned to head up your company`s new operations in a Latin American country. Because at least two of your competitors are also trying to enter this same market, your boss wants you to move as quickly as possible. You also sense that your success in this assignment will likely determine your future with the company. You have just completed meetings with local government officials, and you’re pessimistic about your ability to get things moving quickly. You`ve learned, for example, that it will take months to get a building permit for a needed facility. Moreover, once the building`s up, it will take another six months to get utilities. Finally, the phone company says that it may take up two years to install the phone-lines that you need for high-speed internet access.
The Dilemma: Various officials have indicated that time frames could be considerably shortened if you were willing to pay special “expediting” fees. You realize, of course, that these “fees” are bribes and you’re well aware that the practice of paying such “fess” is both unethical and illegal in the United States. In this foreign country, however, it`s not illegal and not even considered unethical. Moreover, if you don`t pay and one of your competitors dose, you`ll be at major competitive disadvantage. In any case, your boss isn`t likely to understand the long lead times necessary to get the operation running. Fortunately, you have access to a source of funds that you could spend without the knowledge of any one in the home office.
Questions: 1-what are the key ethical issues in this situation? 2-what do you think most managers would do in this situation? 3-what would you do?
You said those "bribes" weren't illegal or unethical in the country you'd do business with. If you have the funds to move things along, why not do it? There a quite a few practices adopted in the U.S that are considered illegal in other countries, do you see the foreign investors thinking twice about them? Just know your boundaries and as far as you can push the international envelope. Talk to a business lawyer and make sure things are legit in the country you'll do business with. Oh, and one more thing. CYOA, you know that.
Grandepensees: You said those "bribes" weren't illegal or unethical in the country you'd do business with. If you have the funds to move things along, why not do it? There a quite a few practices adopted in the U.S that are considered illegal in other countries, do you see the foreign investors thinking twice about them? Just know your boundaries and as far as you can push the international envelope. Talk to a business lawyer and make sure things are legit in the country you'll do business with. Oh, and one more thing. CYOA, you know that.
You say your boss is not aware of the time constraints or the reasons for them.
So tell him
Quite simply, you write a report on the preliminary inquiries you have established and request that he, advises your next move, as the owner of a company, I would far rather have someone be honest with me and make sure I am fully aware of what is occurring within my expansion plans than get some customs official send me a summons. If I, as the boss make the decision to bribe officials thats my risk and not yours.
NAKEDMUDPEOPLE: Shoot I was hoping to learn something and now, it has gone to emails.
Sorry NMP: In short, it's illegal under the American Foreign Corrupt practices Act (and seriously frowned upon by other governments). People have gone to jail and companies have been fined millions of dollars for someone engaging in facilitating payments as mentioned in the thread.
But, as some other astute soul (Scubadiva) said, sounds like case prep work to me so I thought I'd keep it off the forums.
Simple really. Your company wants to do business as soon as possible in a Latin American country in which they know that bribes are not illegal, but are expected, if they want to do business there. Since your an up and coming manager who wants a future in the company, you also know full well you gonna have to pay the bribes as well to be successful. So, I will pay the bribe and sleep soundly at night knowing full well that ethics and business don't mix.
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Assume that you’re an- up-and-coming managers in a regional U.S. distribution company. Firms in your industry are just beginning to enter foreign markets, and you`ve been assigned to head up your company`s new operations in a Latin American country. Because at least two of your competitors are also trying to enter this same market, your boss wants you to move as quickly as possible. You also sense that your success in this assignment will likely determine your future with the company.
You have just completed meetings with local government officials, and you’re pessimistic about your ability to get things moving quickly. You`ve learned, for example, that it will take months to get a building permit for a needed facility. Moreover, once the building`s up, it will take another six months to get utilities. Finally, the phone company says that it may take up two years to install the phone-lines that you need for high-speed internet access.
The Dilemma:
Various officials have indicated that time frames could be considerably shortened if you were willing to pay special “expediting” fees. You realize, of course, that these “fees” are bribes and you’re well aware that the practice of paying such “fess” is both unethical and illegal in the United States. In this foreign country, however, it`s not illegal and not even considered unethical. Moreover, if you don`t pay and one of your competitors dose, you`ll be at major competitive disadvantage. In any case, your boss isn`t likely to understand the long lead times necessary to get the operation running. Fortunately, you have access to a source of funds that you could spend without the knowledge of any one in the home office.
Questions:
1-what are the key ethical issues in this situation?
2-what do you think most managers would do in this situation?
3-what would you do?