Globalization of ethical decision making

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Reference no: EM132205755

Globalization of Ethical Decision Making

Dale Goodwin stared out the window of his office in Rio de Janeiro and pondered his dilemma. He had been a salesperson with Magnum Oil Pumps, Inc., for 35 years. He served the company in many regions around the world and recently was transferred to Brazil. Historically, he has been an average-performing salesperson, but age has slowed him down and his overall sales have gradually declined in recent years. Given his age and his recent transfer, Dale realized that if he makes too many mistakes, he might find himself out of a job and he could lose his pension before he gets a chance to retire.

Three months ago, Dale had given a sales presentation to Oscar Álvarez, head of the government oil fields in Brazil. The two men hit it off and quickly became good friends. Over lunch last week, Oscar had mentioned to Dale that Magnum Oil Pumps had a very good chance of securing a $5 million-a-year, five-year contract to supply and install replacement pumps for the Brazilian government’s oil fields. However, Oscar had also informed Dale that three other firms were bidding for the same contract. Because of their friendship, Oscar had said, he felt obligated to advise Dale that Magnum’s bid was high compared to the others’ and he recommended that the company lower it. Dale thanked his friend for this information and resubmitted a lower bid.

Yesterday, Oscar called Dale to tell him that in all probability Magnum Oil Pumps would get the contract for the replacement pumps. Oscar also requested from Dale a gift of $50,000 in exchange for winning the contract—in essence, a bribe. At first Dale told Oscar that he would have to think about it. Dale then called his superiors in the United States, who told him that it is against U.S. law to offer bribes to anyone in any foreign country, even if it means securing lucrative business. At the same time, his superiors urged Dale to do what he could to try to secure the contract.

This seemed to be a black-and-white decision, but Dale knew differently. After 35 years with the company, he knew that bribes had often been used to secure large overseas contracts. He also recognized that if he got caught giving Oscar Álvarez a bribe, he would probably be fired. But he knew that if he did not win this contract, the chances of his remaining with Magnum Oil Pumps would be slim. With retirement just a few years away, Dale needed his pension. He had to make a decision quickly.

Please read the What Would You Do feature in this chapter before answering these questions.

What are the ethical and legal issues in this situation?

Who is affected?

Would Dale’s decision be different if he were younger or a better salesperson?

Reference no: EM132205755

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