Chapter 3, Problem 1EA

The executives of a clothing manufacturer want to outsource some of their manufacturing to more cost-efficient locations in Indonesia. After visiting several possible sites, they one and begin to negotiate with local officials. They discover that it will take about six months to get the necessary permits. One of the local politicians approaches the executives over dinner and hints that he can speed up the process for an advisory fee of $5,000.

Using a web search tool. locate articles about this and then write responses to the questions. Be sure to support your arguments and cite your sources.

Ethical Dilemma: Is paying the advisory fee a bribe or an acceptable cost of doing business in that area of the world? What should the executives do before agreeing to pay the fee?

Sources: Eric Markowitz, "The Truth about Bribery and Doing Foreign Business: Inc., https.//www.inc.com, accessed March 19.2018: Roberto A Ferdman. "How the World's Biggest Companies Bribe Foreign Governments," The Washington Post https://www.washingtonpost.com. accessed March 19, 2018; David Rising, "The 10 Countries Most Likely to Use Bribery in Business, Huffington Post, https://www.huffngtonpost.com, accessed March 19, 2018.

Summary Introduction

To explain:

Whetherpaying the bribe as anadvisory fee to run business in any part of the world is legal or not.

Introduction:

According to a president of an import/export company, bribery is a common practice to operate a business in a lot of places. Bribery is very common in underdeveloped countries. Basic jobs do not play well, its attractive for officials to add extra money in their income.

Explanation of Solution

From the USA point of view, bribery presents a two-edged sword. Foreign corrupt practices Act of the USA prevent payments made to the government officials with the aim of gaining and maintaining business.

To operate a successful business in a foreign country, the company must follow many legal procedures of that country.From the given case, it has been observed that offering bribe to run a business in a foreign country totally depends on the country's political environment.

If any company wants to operate its business ina foreign country, that company must takepermission from different departments, including, environment, land, etc., If the government restricting that company, this means there is some problem from the company's end. It might happen that the working procedures of that company might differ from the country's rules and regulation.

If any government official creates problem to permit the company to run its business and ask for the bribe even after checking all the documentsin this condition,the company cangive bribe to the officers or politicians. Asking for a bribe or offering bribe is illegal. Hence, the company can go to ahigher authority, if anyone demandsa bribe.