Reference no: EM132116616

Build Big Company is in stiff competition for the dwindling amount of prime residential building land available near a fast-growing urban area. Although the law of supply and demand has driven house prices to astronomical heights, costs of building have kept rapid pace, and profit margins for Build Big are narrow. A thicket of local building regulations, environmental impact reports, developer fees, and permits complicate the process, but they have also provided opportunities for special “arrangements” with two discreet county officials who will expedite transactions for an added gratuity. It’s common practice with some of Build Big’s competitors. Build Big’s President, J.B., has wrestled with the question of gratuities for some time. There is increasing legal risk in the situation. Also, J.B. has prided himself through the years for being totally honest. Now the competition has never been tougher, and J.B. is starting to suffer economically because his projects move slower than those of his competitors. J.B. calls in Sam, who has responsibility for obtaining the necessary permits. “We need to stay competitive,” says J.B., “We’ve got nearly 250 people on the payroll, and that’s a lot of jobs to lose if we can’t compete. See who you can talk to, Sam. I don’t care what you need to do to get the permits approved... just do it.”

1. How do you think Sam should respond? (Write your response in using complete sentences)