Scenario: Company A is a US company with a subsidiary located in Country Z where
ID: 2353132 • Letter: S
Question
Scenario: Company A is a US company with a subsidiary located in Country Z where various forms of bribery are accepted and expected. Company A sent one of its top US managers to oversee the operation. Manager M engaged in the following activities while in Country Z during recent months of operation:
A-Paid $200 to a govt inspector to reschedule the inspection date of a new manufacturing facility from April 15 to Feb 15.
B-Paid an average of $50 each to 4 local police officers who are in charge of patrolling the area around the new manufacturing facility. The officers agreed to increase the number of times they check the area.
C-Company N a domestic company is in competition with Company A for a govt contract. Company A learned that Company N has given approx $5000 to the official who will make the final contract decision. Manager M authorized Company A to pay the equal amount to the official.
D-The electric utilities are govt owned and operated. Due to the Frequency of servere storms there are often power outages due to downed lines. Manager M has paid the official in charge of coordinating repair crews $200 to ensure that the manufacturing plants power is one of the first restored.
Explanation / Answer
C would be illegal. From an operations standpoint, C would also be considered bad management because Company A does not know if it will get the contract in exchange for the $5,000 whereas the other options are more of a purchase. An alternate solution to this problem would be to have each of the companies bid on the government contract and then whoever places the highest bid will get the contract.