starnes brenner machine tool company
TRANSCRIPT
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: [email protected]