Mini Cases Part 1
B U S I N E S S E T H I C S
Outcome 1.3: Explain the ethical issues which can affect the operational activities of a business.
Outcome 3.1 Assess the role of the company acting as moral agent.
Mini Case 1
You are in charge of trying to secure a contract for US telecom equipment worth $40m to a ministry in Latin America. Europeans are also competing. You and local officials recognize there is not much quality difference. A local accountant you have worked with in the past suggests you might receive the contract if you deposit
$2m in the Swiss bank account of the general in charge of the ministry.
If the company pays, who is wrong? Company is NOT a moral agent
Whoever decided to pay (executive?) is responsible.
They had power to decide, they pay the penalty if
caught. Do not blame an artificial person (company).
Company is moral agent:
It is a combination of people. Maybe cannot trace back to one decision maker. Company includes “internal decision structure” and culture. Company had power and so it has responsibility.
Mini Case 2
Your local office manager in a Loas subsidiary you are running comes and explains that in order to complete the sale of an aging company car, she will have to convince the police to fill in the original date on the car’s registration, and this will cost $25 with no receipt.
She says she doesn’t know why it was not done properly originally. She also says she doesn’t know the date so she cannot fill it in but the police will have a record, if the dates do not match, the sale cannot be completed.
Would you authorize this payment?
Mini Case 3
Working for a large American utility, you are in charge of negotiating an agreement in Indonesia with the
state-owned electricity company to build, own, and
operate a generating plant. It is suggested that you should include one of the grown children...