Facilitation or Bribery: Cultural and Ethical Disparities

Facilitation or Bribery: Cultural and Ethical Disparities

Week 7

Fall 1, 2011

Class Name: Business Ethics

Park University

Facilitation or Bribery: Cultural and Ethical Disparities

Review of the Case

Telecommunications Company, Geletex is expanding to international operations. During the expansion to other countries, it has been noted that there are differences in the cultural, governmental and ethical standards from the US and from country to county. As this is a US based company then it is required to follow the law set out to prevent bribery under the Foreign Corruption Practices Act (FCPA).

Jed Richardson, the companies, Compliance Director has installed training programs and call hotlines for anyone who believes there has been a violation of the FCPA rules. In reviewing certain situations in the international locations, Jed has become aware of instances believed to be double standards in the operations side.

In three countries operations it has been noted that their appears to be unusually high sales commission bonuses paid out, which can be disguised as kick back payments to secure contract awards, payments to government officials and providing salaries to government or executive officials families members. Geletex are at risk of violating FCPA laws even being in an operation outside of the USA.

Facts and Assumptions

Facts

• Geletex is attempting to expand its operations worldwide from being a predominantly US based operation.

• Companies Director of Compliance, Jed Richardson, provides training for employees, initiates a telephone hotline for reporting potential incidents.

• As a US based company it is illegal for Geletex to pay bribes to conduct any business abroad.

Assumptions

• High sales commissions reported. Larger commissions can be related to a disguised figure for kickbacks for contracts being awarded.

• Jobs being awarded to younger employees who are sons and daughters of executives and government officials. They...