Ethical Dillema

Summary of the case:

The case is presented in a form of a letter, where Alexander Gavin writes to a Professor called Hennessey about an ethical dilemma he faces in his work. Alexander Gavin is a Senior Project Manager for El Sahd Construction Company in Kuwait. The company is wealthy, efficient and cost effective. Two months back the company bid a $30 million on a project in Iran to be the principal subcontractor. There was huge profit in it for them and they also expected to put up a bargain with Ajax Ltd., the company asking for the bid. However when Alexander Gavin met up with the manager of Ajax, the manager told him to make the bid $33 million; giving the reason that $ 1 million would go straight to the pocket of Ajax Ltd’s Managing Director in London and another $ 1 million into his and the remaining $ 1 million to Alexander Gavin’s account. The reason for Alexander Gavin receiving a share was that so that he doesn’t talk about this transaction to any one. Although Alexander Gavin’s company can always raise the bid however this share of money did not make him comfortable, as a matter of fact this went against his ethics. So he writes to the professor for giving it a thought putting himself in his shoes.

Identification of the problem:

Alexander Gavin faces an ethical problem. He is put in to a situation where his ethics is in the line. The daunting prospect of usurping a $ 1 million doesn’t seem right to him in the first place; more over he has heard of cases like this in which if a bidder fails to cooperate then he might face some threats of physical harm. Although Alexander Gavin is very well aware of this type pay offs existing in the Middle East but still this is the first time he is being bullied to take a part in it himself. This situation has left him in a state that he doesn’t know what to do.

Alternative courses of action:

1. He can stick firm in his ethics and turn down the proposal and wait for its consequences.

2. He can...