Reference no: EM133481257

Problem

Paying Attention to Foreign Practices

The Situation

Assume you're an up-and-coming manager in a regional Canadian distribution company. Firms in your industry are placing more emphasis on foreign markets, and you've been assigned to head up your company's new operations in a Latin American country. Because at least two of your competitors are also trying to enter this same market, your boss wants you to move as quickly as possible. You also sense that your success in this assignment will likely determine your future with the company.

You have just completed meetings with local government officials, and you're pessimistic about your ability to get things moving quickly. You've learned, for example, that it will take 10 months to get a building permit for a needed facility. Moreover, once the building is up, it will take another 6 months to get utilities. Finally, the phone company says that it might take up to 6 additional months to get high-speed internet access.

The Dilemma

Various officials have indicated that time frames could be considerably shortened if you were willing to pay special "fees." You realize that these "fees" are bribes, and you're well aware that the practice of paying such "fees" is both unethical and illegal in Canada. In this foreign country, however, it's not illegal and not even considered unethical. Moreover, if you don't pay and one of your competitors does, you'll be at a major competitive disadvantage. In any case, your boss isn't likely to understand the long lead times necessary to get the operation running. Fortunately, you have access to a source of funds you could spend without the knowledge of anyone in the home office.

Task

Question I. What are the key ethical issues in this situation?
Question II. What do you think most managers would do in this situation?
Question III. What would you do?