2. Wilson Chemicals
• British company
• Manufacturer of chemicals
• Particularly chemical fertilizers
Wilson Chemicals (Ghana) Ltd.
• Subsidiary of Wilson Chemicals
• Established in 1962
• Had grown at a steady rate since its opening
despite the economic and political difficulties
in the country
3. Gerald Howard, President, Wilson
Chemicals
↓
George Teele, Vice President,
International Division, Wilson Chemicals
↓
Ian Thomas, Director, West African
Division, Wilson Chemicals
↓
Mr. Joseph Okono, subsidiary
president (an Oxford-educated
Ghanaian)
4. • 1962: opening of the subsidiary in Ghana
• Since 1968: the company is responsive to the host
country
• 1972: Joseph Okono named as President of the
subsidiary
• 1984: Audit by a british-based company: reveal that
Okono used £50.000 as incentives to facilitate
bureaucracy, gain key contracts, and streamline
procedures
5. • Has proved to be an extremely able manager:
oSales as increased at an average of 10% a year
oHe tripled real profits
oHe is appreciate by both employees and clients
oHe knows how to work with whatever government
in power
6. Strengths Weaknesses
Ethics: the company is employing more
and more native Ghanaians at top
positions
Financial: the company is doing very well
Management: Mr.Okono is a native
Ghanaian so he is familiar with local
affaires.
Marketing: the sales in Ghana has grown
continuously for 10 years
Policy: Ghanaian government officials’
“extra consideration” due to the bribery
Ethics: use bribery in order to make
profit
Political environment: Rawlings
governments trying to erase bribery
Econimic situation: Not good. Food
production dropped.
Financial: £50.000 was unaccounted for
by the financial officer Mr.Jonhson
Interculture: On the problem of bribery,
Mr.Okono has different opinions with the
top.
10. Rawlings’ crackdown against corruption:
In 1982:
• A former leading member of the now banned People's National Party, was imprisoned
for accepting £5,000 from an Italian businessman.
In 1983:
• A number of civil servants were dismissed on charges of corrup¬tion or embezzling.
• Nine senior police officials and fifteen others were retired early for alleged profiteering.
• The Director of Prisons and other senior prison officials were dis¬missed for a variety
of reasons.
• Some officials of the Ghana Water and Sewage Corporation, the Ghana National
Trading Corporation, and the Cocoa Marketing Board have been ordered to stand trial
for tax evasion.
• Sixty-nine officials, including sixteen principal and assistant prin¬cipal secretaries,
have been forced to quit the Foreign Affairs Ministry for financial irregularities.
11. There is evidences that Okono is using
bribery, it seems necessary to do business
successfully in Africa. Though, the
Ghanaian government is doing crackdown
against bribery. If the bribery of Wilson
Chemicals is discovered, its business in
West Africa will be adversely affect.
Should Wilson Chemicals stop the bribery
and even fire Okono, or should it keep it
going in a more concealed way?
12. Maintain the Status Quo
Advantages:
• Maintain the good
relationship with officials
in relevant governmental
departments
• Maintain the competitive
advantage, avoid
bureaucratic red tapes
Disadvantages:
• Okono may be caught, the
entire business in West Africa
be in danger
• Lose the Ghanaian market
with nearly 20,000,000
sterling's profits
• Damage the global reputation
of Wilson Chemicals
13. Substitutes for money
(Scottish whisky, Stilton cheese etc.)
Advantages:
• More concealed, difficult
to be detected by the anti-
corruption department
• Reduce the cost of bribery
• Maintain the relationship
with officials of relevant
departments
Disadvantages:
• Risk to be detected
• May not be enough for
officials, so it will become
useless
14. Stop the bribery
Advantages:
• No risk of being
detected
• Reduce a big cost
(£47,000)
• Increase the
relationship with
President Rawlings
Disadvantages:
• No more “extra
consideration” from the
government
• Lose profits due to the
present bad economic
situation in Ghana
15. Dismiss Okono
Advantages:
• Reduce a big cost
(£47,000)
• Risk of being detected
has gone
• Hire a new one who
will follow
instructions from the
top, strengthen the
parent company’s
control
Disadvantages:
• No more “benefits” from
relevant governmental
departments
• Okono is an native and
experienced manager in
Ghana
• Lose profits
16. Quit Ghanaian market
Advantages:
• Never more being
affected by the
complex economic
and politic situation
of Ghana
• No more cost to run
the Ghanaian
subsidiary
Disadvantages:
• Lose the Ghanaian market and
20,000,000 sterling's profits
• The entire operation of Wilson
Chemicals being affected
