Topics: United States, Negotiation, Contract Pages: 3 (510 words) Published: March 10, 2013

Mini Cases

Outcome 1.3: Explain the ethical issues which can affect the operational activities of a business.



Mini Case 1
You are in charge of trying to secure a contract for US telecom equipment worth $40m to a ministry in Latin America. Europeans are also competing. You and local officials recognize there is not much quality difference. A local accountant you have worked with in the past suggests you might receive the contract if you deposit $2m in the Swiss bank account of the general in charge of the ministry. Would you? Would you if you were in a European firm?

Mini Case 2
Your local office manager in a Loas subsidiary you are running comes and explains that in order to complete the sale of an aging company car, she will have to convince the police to fill in the original date on the car’s registration, and this will cost $25 with no receipt. She says she doesn’t know why it was not done properly originally. She also says she doesn’t know the date so she cannot fill it in but the police will have a record, if the dates do not match, the sale cannot be completed. Would you authorize this payment?



Mini Case 3
Working for a large American utility, you are in charge of negotiating an agreement in Indonesia with the state-owned electricity company to build, own, and operate a generating plant. It is suggested that you should include one of the grown children of the country’s president as a partner in the project. He is a partner in several important companies but you are not aware of him having any business skills. He would like 15% equity. He would take a loan from the company to purchase the shares. The loan would be paid down from dividends from the shares. Would you make him partner?

Mini Case 4
You are responsible for negotiating with an African government for your company to build and operate a battery plant in the country. You have US lawyers and know a local...
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