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Personal and Social Ethics

In: Social Issues

Submitted By lizdhopewell
Words 1244
Pages 5
1. Had John done anything wrong?
I believe that John has made a potentially harmful choice in this situation, but I also don’t think that it is necessarily wrong. It is obvious that John did his homework and discovered wasta. Wasta is simply “pulling strings, nepotism or using an interceder to obtain benefits or to speed a process – usually in relation to authorities.” While wasta is a normal practice in the Middle East, therefore John was simply taking measures that were not out of custom. 2. Were John’s actions immoral? Unethical? Illegal?
In short I believe that John’s actions were unethical, immoral, but not illegal. * Unethical - First, I see his actions as unethical. John used a bribe, a payment of a desirable gift to influence the official’s purchase decision. Wasta may be culturally normal, but it is still a form of corruption, which John likely knew. * Immoral – I believe that John’s ethics were immoral due to my personal set of ethics. I am not aware of John’s personal convictions, but with lack of better knowledge I believe John acted immorally. * Legal - Also, John received a bribe, his potential bonus or the lack thereof, as a payment. John has an interesting position as a UK resident. He does proceed with action due to the financial push by his superiors, but since there is not international law governing bribery he is acting legally.

3. Whose countries laws should John follow?
John is required to abide by laws in which he is a citizen and that of the country he is currently in. 4. What are the ramifications of sending the caviar or not?
If John sends the caviar then the short-term ramifications are great. John will likely obtain the deal, generate a hefty market share in the Middle East, he will probably receive a large bonus for the year, Lee Anne and Hamish will also benefit monetarily, Ace employees will be satisfied, and the company will grow. The long-term ramifications could go two ways. If the FCPA finds Ace guilty of their bribe, the company could be charged with a penalty up to one million dollars, corporate officers could face a fine of 10,000 dollars and/or a five-year imprisonment. This could further lead to the closing of the company and obviously a drastic loss in market share. If Ace is not found guilty of their bribe, they would potentially grow greedy and partake in more immoral and unethical action. Lastly, if ace is not found guilty, they could go onto dominate market share in the Middle East and move onto other markets.

5. Had Lee Anne done anything wrong?
I believe that Lee Anne’s actions were wrong. Lee Anne was using bribery to coerce Hamish and John into closing a deal by saying “do what it takes” and dangling bonuses in their faces. 6. Were Lee Anne’s actions immoral? Unethical? Illegal? * Immoral- violating moral principles; not conforming to the patterns of conduct usually accepted or established as consistent with principles of personal and social ethics. Due to her reputation, I believe that Lee Anne’s actions were not immoral. Obviously Lee Anne wanted hard and fast results. She didn’t seem concerned with what is right, rather what brings in the cash. Her bribe does not seem immoral based on her personal convictions. * Unethical- lacking moral principles; unwilling to adhere to proper rules of conduct. I do believe Lee Anne’s actions were unethical due to the cultural norm of America/the west. Americans are usually less tolerant of bribery. * Illegal- contrary to or forbidden by official rules, regulations, etc. Lee Anne’s actions are definitely illegal. Bribery constitutes as a crime and can be punishable by law.

7. Should you consider any cultural differences?
Yes, you should consider cultural differences. When doing business in different countries you should see to understand the customs of the respective countries you are working in and with. Various countries have different customs regarding gifts, methods of payments, and even various ways of doing business. For example, in third world countries, gifts signify the beginning of a transaction. John researched and knew the customs of this particular country and offered the caviar as an incentive per normal business transactions. 8. What was Hamish’s role in all of this?
As the European sales manager, Hamish’s role is to manage and assist John as he attempts to land this foreign deal. As a manager he is to take commands from the top and relay the message and call to action to his employees. Also as the manager he is to mediate between the lower level employees with Lee Anne. Hamish received the command from Lee Anne and then passed it along to John. Realistically, Lee Anne does not know John on a personal level or even a professional level. Therefore whether John succeeds or fails, it reflects on Hamish. Therefore, he feels the weight of Lee Anne’s pressure and then passes it onto John. 9. Do the respective parties’ geographical locations make a difference?
Yes, the respective locations of Lee Anne, Hamish, and John make a difference. Lee Anne is primarily seeking to obey the laws and regulations of the US. It seems that Hamish has become proficient in European business, therefore her knowledge of intercultural laws and regulations should make a difference. John’s location is also crucial to the situation. He is currently seeking to build business in the Middle East, he is living in the UK, and he is working for an American company. Therefore he must be aware of the cultural differences when it comes to business transactions, customs, and laws. 10. What would you do and why?
If I were in John’s situation with my manager breathing down my neck to finish a deal I would do everything in my power to secure that deal, but through following my highest level of conscience. In more articulate terms – I would ensure the deal is secured through informing Mr. Mahmood of the benefits of going through Ace versus the competitors. Dale Carnegie says in his book, “..the only way to influence people is to talk in terms of what the other person wants.” I would follow the same tactic that John did by offering my ability to obtain international goods due to my international business.

--------------------------------------------
[ 1 ]. “Business Ethics in the Middle East” by Dove Izraeli. pp 1556
[ 2 ]. http://www.business-anti-corruption.com/country-profiles/middle-east-north-africa/jordan/show-all.aspx. Accessed 9/1/15
[ 3 ]. Stephen B. Castleberry and John F. Tanner, Jr. “Ethical and Legal Issues in Selling,” Selling: Building Partnerships, 9th Edition. pp 38
[ 4 ]. “Corruption from a Cross-Cultural Perspective” by John Hooker. pp 14
[ 5 ]. Sak Onkvisit and John. J Shaw. “Journal of Global Marketing” pp 8
[ 6 ]. Sak Onkvisit and John. J Shaw. “Journal of Global Marketing” pp 7
[ 7 ]. http://dictionary.reference.com/browse/immoral. Accessed 8/31/15
[ 8 ]. http://dictionary.reference.com/browse/unethical?s=t. Accessed 8/31/15
[ 9 ]. Handout. Page 5
[ 10 ]. http://dictionary.reference.com/browse/illegal?s=t. Accessed 8/31/15
[ 11 ]. https://www.law.cornell.edu/wex/bribery. Accessed 9/1/15
[ 12 ]. Handout page 11
[ 13 ]. Sak Onkvisit and John. J Shaw. “Journal of Global Marketing” pp 14
[ 14 ]. Dale Carnegie. “He Who Can DO This Has the Whole World with Him. He Who Cannot Walks a Lonely Way” How to Win Friends and Influence People. pp 32.

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