Ethical Dilemma Discussion - Unit 1

Must post first.

Paying Heed to Foreign Practices
The Situation
Assume that you’re an up-and-coming manager at a medium-sized manufacturing company. 
Your company is one of only a few companies making certain components for radiant floor
heating systems.  The primary advantage of these systems is that they are energy efficient and
can result in significantly lower heating costs.  Although radiant floor heating is just catching on
in the United States, there is a lot of potential in foreign markets where energy is expensive. 
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 would like to build a production facility and have just completed meetings with local
government officials.  However, you’re pessimistic about your ability to get things moving
quickly.  You’ve learned, for example, that it will take 10 months to get a building permit for a
needed facility.  Moreover, once the building’s up, it will take another 6 months to get utilities. 
Finally, the phone company says that it may take up to 2 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 “fees.”  You realize that these fees are bribes, and you’re well aware that
the practice of paying such fees 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 does, you’ll be at a 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 anyone in the home office.
 
Questions to Address
After reading and considering the information provided, please answer the following
questions.  Your post must be a minimum of 3 paragraphs. 

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, and why?
4. The ethical issues for companies opening new operations in a Latin American country
presented in the ethical dilemma titled “Paying Heed to Foreign Practices” are current
issues addressed in a report by the Congressional Research Service (CSR) dated May
21,2019 and was presented to all of congress (Beittel, Meyer, Seelke, Taft-Morales, &
Gracia 2019). The first ethical issue presented in the dilemma is the practice of bribes to
facilitate a shorter schedule. The second ethical issue is the plan to cover up the bribe and
withhold financial dealings from the company that is accountable for the illegal act under
the U.S Foreign Corrupt Practices Act. 
5. While the historical trend for U.S company managers was to pay the bribe and not be
transparent in their financial dealings, I believe today’s manager is now choosing to not
pay the bribe. Hefty fines and social opinion of companies contributing to the corruption
of Latin American countries have heavily influenced the choice to not do as everyone
else does. In 2018 there was a rise in exposed corruption that resulted in prosecution in
Latin American countries resulting in anti-corruption candidates and campaigns during
the 2018 elections (Beittel, Meyer, Seelke, Taft-Morales, & Gracia 2019). I also believe
that the Odebrecht case has heightened the exposure of the corruption of the Latin
American government and society’s stand on not excepting the act of bribery as part of
doing business. Attention to this event resurfaced when Alan Garcia killed himself when
police arrived to arrest the former Peruvian president 17 April 2019 ("Odebrecht case:
Politicians worldwide suspected in bribery scandal", 2019).
6.             In support of the anti-corruption movement in Latin American countries. I would
choose to not engage in the “special fees” and prepare a case of alternatives to present to
the home office. I would request to invest in a local manager and look for an established
business that would meet our needs and invest in purchasing that business. I would want
to ensure that we understand the culture so we may be more successful as a business, we
want to connect with the people and develop strong relationships for long term benefits.
The more a part of the community we are, the more respectful and sensitive we are to the
culture (while maintaining an ethical way of doing business) the more success we will
achieve as a company.
7.  
8.  
9. United States, Congress, Cong., Beittel, June S., et al. “Combating Corruption in Latin
America: Congressional Considerations.” Combating Corruption in Latin America:
Congressional Considerations, CRS, 2019. 116th Congress, report R45733.
10. Odebrecht case: Politicians worldwide suspected in bribery scandal. (2019, April 17). Retrieved
from https://www.bbc.com/news/world-latin-america-41109132