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Problem 1: Imagine that you are a finance manager in control of purchasing for a small manufacturing company. Your supplier in Russia tells you that there are two quotes, one for payments in U.S. dollars by wire transfer or check and one for a U.S. dollar cash-like transaction. The cash transaction is almost 10 percent cheaper, which could earn your firm a nice profit and a potential year-end bonus for you. How do you handle the phone call and the decision? Discuss the ethical and business issues involved. If you decide against the cash-like transaction, do you tell your senior management? What do you recommend to your management about future dealings with the supplier? Russia is one of the most corrupt countries for businesses. What options would the firm have if it needs to source from Russia?
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