Case: Starnes-Brenner.

1. Is was Frank did ethical? By whose ethics -- those of Latino or the United States?

It appears that Frank's actions involved bribery, which is generally considered unethical in most
ethical frameworks, including those of both Latino and United States ethics. This behavior is
generally seen as unethical as it undermines fairness, transparency, and the principles of honesty
and integrity in business transaction.

It's important to note that ethical standards may vary within different Latino cultures or specific
U.S. contexts, and it's always important to consider the specific circumstances and relevant ethical
principles or guidelines when evaluating the ethical nature of an action.

2. Are Frank’s two different payments legal under the Foreign Corrupt Practices Act as
amended by the Omnibus Trade and Competitiveness Act of 1988?

Payments made by Frank may be considered illegal under the Foreign Corrupt Practices Act. This
law prohibits bribing foreign officials to obtain or retain business and provides severe penalties for
those who violate it. In this case, Frank should not have made these payments, as they appear to
be bribes, and if found to have violated the law, he could face serious legal and financial
consequences. It is important to keep in mind that corruption is not only illegal, but also immoral
and undermines trust in the business system and in society in general.

3. Identify the types of payments made in the case; that is, are they lubrication, extortion, or
subornation?

Payments made by Frank to foreign government officials appear to be bribes. A bribe is a payment
or gift given to someone to influence their behavior or action. In this case, Frank made these
payments for business gain, and the text suggests that the payments were neither necessary nor
legitimate. The payments were also made with the intent of avoiding law enforcement and gaining
access to inside information. These factors suggest that the payments were not simply an act of
lubrication or extortion, but a possible act of bribery.

4. Frank seemed to imply that there is a similarity between what he was doing and what
happens in the United States. Is there any difference? Explain

There is a difference between what Frank does in Latino and what is done to get a sale in the
United States, although when you do it, both are forms of bribery. In the United States, people
bribe each other to get a sale, re-election, etc., by treating someone to a fancy dinner or giving
them gifts; however, it is illegal to give someone money under the table. In Latin they are just
more open about it. They will say flatly that a bribe is a bribe.

5. Are there any legal differences between the money paid to the dockworkers and the
money paid the jefe (government official)? Any ethical differences?

Yes, there are legal differences. First, paying a government official is illegal, while bribing dock
workers is considered legal under the Foreign Corrupt Practices Act. If we analyze the ethical part,
there are no differences, because honesty is evaded and, in both cases, there is bribery.
 6. Frank's attitude seems to imply that a foreigner must comply with all local customs, but
some would say that one of the contributions made by U.S. firms is to change local ways of
doing business. Who is right?

I think frank must fit in with the local customs because he is a guest in the country, but he should
not forget his business values or beliefs. In the curtsy kiss or handshake, you need to be able to
commit to your business partner, but you also need to remember your business values. It's hard to
force someone to follow local customs because it goes against their core values.

7. Should Frank's behavior have been any different had this not been a government
contract?

Frank's attitude would have been different, as with any client, the ethical principles should be the
same. Bribes will not be accepted in any case.

8. If Frank shouldn't have paid the bribe, what should he have done, and what might have
been the consequences?

Frank had to wait for the American mechanics or find another solution within the same country. If
you had done this, you probably would have lost the customer and your profits, but you would
have established cleaner and more appropriate business conduct.

9. What are the company interests in this problem?

Within the policies of the company there is no possibility of bribing, but if this happens, as in the
case of Frank, former president of the company preferred to skip this, because he gave more
importance to the profits it was generating Frank, no matter how it was generated.

10. Explain how this may be a good example of the SRC (self-reference criterion) at work.

Frank has a reference about himself and his way of manage the business, and he thinks that he is
the best doing his job and that the others are wrong, but he doesn´t know that he is making a
mistake doing the things without ethics. This is a perfect example of the SRC, because he closed
his view to himself and nothing else and belittles the work of the other people.

11. Do you think Bill will make the grade in Latino? Why? What will it take?

Bill will succeed in Latin as honest working methods establish and implement the strategy that
worked well in the United States. He will need strong strategies based on cost or differentiation to
compete healthily without bribes.

12. How can overseas manager be prepared to face this problem?

Any manager that aims to work abroad in the future, you will need excellent training. This training
should address issues such as practices, norms, lifestyles, culture, etc.., the country where you are
going, so that when exercising, that person can know what will face problems and scenarios. Your
skills and abilities will give you the tools to resolve conflicts that may arise.
Members:

Sigrid Burgos

Giannina Zunino