Boe of Colombia

BOE OF COLOMBIA SOLUTIONS

1. Are the various gifts that Manning receives normal business activities, bribes or some other transaction? Is it ethical for Manning to receive these gifts?

* “Boe Chemical is one of the largest chemical companies in the world, and annual sales in its most recent (2006) fiscal year exceeded $10 billion.” This statement makes it likely that Boe is a publicly-traded company. The rules for publicly-traded companies have changed since the scandals of Enron, WorldCom, Tyco and numerous others, leading to the passage of the Sarbanes-Oxley Act of 2002 (U.S.). Other countries have established regulatory oversight of corporate behavior. The various gifts are both bribes (as with the golf clubs and the football game) and normal business activities (the business lunches). It is ethical for normal business activities but unethical and probably illegal for the gifts with a significant value.

2. Should a company in Colombia have hired a local agent to circumvent local laws?

* The issue is whether the company would have had to shut down for some period, throwing 2,000 people out of work, or paying the local agent. The situation probably forces the use of the local agent. In any event, the decision should have been made at corporate, not by a local manager (Dansforth).

3. Should nepotism (hiring relatives) be allowed in certain foreign countries?

* Nepotism is not unusual in some countries and is found in the U.S. in certain industries (the securities industry). The practice is cultural and historical, and no amount of regulation is likely to change the practice.

4. Is it appropriate for managers to use company funds to purchase such items as tickets to sports events, country club memberships and similar items?

* Companies use these perquisites to entertain customers and reward employees. Again, the decision on large expenses should be made at corporate. This is handled in many public companies by establishing a...