Business Ethical Simulation

1. What should CEO Werner say to the Division Chiefs? Is the decision ethical? Why or why not?

A lot of companies are doing business with China right now. How do they get around the problem? Ethical decisions made by senior officers in a corporation can impact their subordinates as they try to carry out their duties. A natural loyalty to the company can come into conflict with ethical decision making.

This decision is not ethical but based on the fact that is best for the continued growth of the company, it is the best decision. Even though I might think this, bribes are becoming an acceptable business practice around the world. This will be the only way the company can do business in china. A lot of companies are using this same practice to gain an advantage in certain markets and most don’t see this as being an unethical issue.

2. How are you enjoying the new position in Hong Kong? Do you keep your job? Why or why not?

It is great to be in Hong Kong, but I just noticed the facilitating payments aspects of the contracts. I would like to do some research on this topic, so we could discuss it more before I start approving contracts.

Yes I keep my job because I accept the fact that this decision was made at the highest levels of the corporation and further discussing of this issue could cause me to lose my job. The CEO has made the decision to offer these bribes so there is nothing that I can do to make a difference and I do not want to lose my job by rocking the boat. Our ethics department should have already cleared this because the payments have been setup and the money has been allocated to make these payments to get the business started in China.

3. What are the implications of payments being made by the subordinate?

Even though giving bribes, or facilitating payments, is an acceptable business practice around the world, bribery is becoming more expensive around the world because of its business transparency. This has led to more government agencies...