Narmin Ahmadli MBA2016
Starnes – Brenner Machine Tool Company: To bribe or not to bribe?
1) Frank’s doing in Latino is not ethical. In Latino bribe is the part of business. If you don’t bribe you cannot survive here. Companies from other countries as Germany, Italy and Japan accepted it. But ethically businesses should participate in an economy, they should also attempt to change this economy into more honest and fair economy. In that situation, Frank’s doing is unethical because instead of giving bribe he should try to change business environment. “Other countries do it as well” doesn’t make him free from his ethical obligation.
2) The Foreign Corrupt Practices Act prohibits American executives and firms from paying bribes to officials of foreign countries. So both payments are illegal.
3) First bribe which paying to the government official is extortion. Frank was obligated to pay this amount of money under that situation. It was lawfully, because the government official wanted this money for adjusting their defects of the machines. In the USA it is legally wrong, but in Latino it is only morally wrong. But everything is legally here. Second bribe which paying to the dockworkers is lubrication. He paid small cash of money to dock workers to expedite them.
4) There are different things. Big dinners are the place where the companies get business transactions. It is something doing without the expectation. Bribe is given in the hope of benefit or doing illegally something.
5) Paying to the government official is legally in Latino. He paid it for adjusting the defects of their machines. But it is morally wrong. Paying to the dockworkers is illegal. He paid it for accelerating the pace of workers.
6) Frank’s attitude is wrong. Foreigner has only to implement all the ethically and legally right local customs. If they are wrong, in that case company should try to change local ways of doing business. Company should try to change the business environment more honest and fair. The company will expand with the country.
8) In the first circumstance, Frank should persuade the government officials to wait the staff engineers. He should not accept their pretenses and should complain to the officials about the situation. In the second circumstance, Frank should wait until they fully finish their transfer.
9) In the one hand it is beneficial for company. The company can gain its profit. But on the other hand, it is against the law, it is illegal. FCPA prohibits it to USA companies in the foreign countries as well.
10) Yes, it is example of SRC. It is obviously the USA market is not suitable for Latino market. So Frank makes the business decisions in Latino, by thinking how the others handle the situations.
11) I think that Bill will make the grade in Latino. But he will follow USA strategies of the company. At the same time, he will adapt these strategies to the local customs which ethically and legally are right.
12) The company’s overseas manager can be prepared by the previous company’s overseas manager or local professional managers. Manager can learn the experiences of the previous manager. At the same time, the company can find other retired local professional manager, and can agree with him to teach his experience to the new one.