Mini Case: You are Contract Manager for a Walmart (Cifra) in Mexico and are requ
ID: 394691 • Letter: M
Question
Mini Case: You are Contract Manager for a Walmart (Cifra) in Mexico and are requesting permission from the local authorities to build another facility in Mexico City. You have established all the necessary networking and you think you have a real good shot at getting this contract. Then a government official approaches you and, in so many words, requests that you provide for a “ special fee” to facilitate the bidding process…..meaning that if you pay this supposed “fee”…you stand a real good chance of beating out the competition (Costco). After reading this mini case, in your 500 words post, please discuss what you would do. You're required to list all possible solutions and pick one solution by explaining why it is the best option. Please note that US laws prohibit such practices of bribery based on the Foreign Corrupt Practices Act.
Explanation / Answer
Besides violating the prohibition from the US Government, indulgence in such activities may not only tarnish the image of the global retail giant like Walmart in a new prospective market, it may also strain the relations between the rivals.
The company has following alternatives.
(a) Negotiate with the authorities to settle for some legal favours to the government in lieu of the "fee", which are ethical too, so that the violation of norms can be prevented.
(b) Adhere to the operating norms of the company without caring for the outcome of the process.
(c) Bow to the demands of the government official, pay the fee and ensure the contract.
(d) Contact the higher officials in the government and reporting them the matter.
The best solution in my opinion is the first one, where the company should negotiate with the government to adopt legal and ethical means of doing some favour for the government ( like offering discounted prices for government officials). This will not violate any norms. However, the company must never compromise on its work ethics and value system, whatever be the outcome.