Nicolo Pignatelli and Gulf Italia

1. What should Pignatelli Do? What would you do and why?

Pignatelli should utilize his resources by asking his partners, who have a higher influence, to use the tactic of putting pressure on government officials to act swiftly and provide the needed permission. If this approach does not pan out, Pignatelli should walk the straight and narrow in order to get the necessary government authorization. While waiting it out and getting permission from the government may take an immense amount of time, the end result would be that the plan goes smoothly and he can reap the benefits of running a successful refinery that would be extremely profitable. If Pignatelli instead hired a consultant, or worse, tried to bribe government officials, his plan could backfire which would put his reputation on the line. It could spell out disaster for his entire business organization.

If it were me, I would wait and get the correct permission from the government. I would think about the long term viability of my organization and do what is ethical, legal and wise.

3. Bribes are illegal in Italy. Even if bribes are common practice there, does this justify paying them?

Illegal is illegal, period. Simply because bribes may be a common practice in Italy, it does not create a justification for Pignatelli to pay them. Doing illegal practices in business is not always just about breaking the law, those things are also unethical. It is important for businesses to always do things with integrity to create a culture where you can trust your employees. Especially doing business in Italy, due to laws regarding the Foreign Corrupt Practices Act, Pignatelli could be closely watched and could find himself in jail if caught. On top of that, if you pay one bribe, you will inevitably continue to do so, one after the other, until that spirals out of control. People who can be "bought" cannot be trusted and they may continue to demand your money and even blackmail you in the future for the...