The document discusses whether to pay bribes ("mordidas") to government officials in a Latin American country in order to gain business. Frank, who is retiring, has paid bribes for 10 years of success, but the new representative, Bill, refuses on ethical and legal grounds. While bribery is common, the US Foreign Corrupt Practices Act prohibits it. The case raises issues around differing cultural perspectives on bribery and how to balance ethics and business practices internationally.

1. To Bribe or Not to Bribe?

2.  Case Summary
 Ethics
 Legality
 Similar Cases
 Real World
 Lessons Learned

3.  Starnes-Brenner Machine Tools Company
Wants more international presence
 Latino-Fictional South American Country
 Frank-10 years of success
Retiring
 Bill-Young, motivated, rising star
Replacing Frank

5.  Conflict between Frank & Bill
Frank plays by Latino “rules”
Franks pays mordidas (Bribe money) to get
equipment passed by government officials
States business will fall without the payment of
mordidas
Bill follows a more strict sales style
Bill absolutely opposes the idea of mordidas
States business will be successful without
paying mordidas.

7.  Bill believes its unethical
Own personal beliefs as well as refusing to
break US laws
 Franks sees nothing wrong with it
Believes they are not encouraging bribery to
spread but rather just accepting the Latinos
ways of doing business

9.  Foreign Corrupt Practices Act (FCPA)
US law prohibits any types of payments to a
foreign official that will influence an act or
decision to obtain an unfair advantage

10.  Halliburton’s Kellogg Brown & Root
Subsidiary, as well as 3 other companies are
suspected of having paid a $180 million bribe
to the former government of Nigeria in order to
build a liquefied-natural-gas plant
Valued at $4 billion to $6 billion
Other companies are from France, Italy, and
japan

12.  Salt Lake City Organizing Committee accused
of bribing the International Olympic
Committee
Dinners
Paid tuition
Help or Aid?

15.  Bribery occurs all the time
Most goes unnoticed
 3rd world countries are most taken advantage
of
Usually have easily corrupted governments
 Bribery takes different forms, why are some
accepted and some not
Political Action Committees (PAC’s)

17.  Success under Frank’s vision
The only one that works
 Success under Bill’s vision
Better used elsewhere
 Are all ethics the same?
 Know how different markets react to different
style selling techniques
Know the do’s and don’ts

19.  Frank’s act is ethical or unethical?
 Difference b/w both bribe?
 Payment of bribes lubrication or extortion?
 In which method USA done bribe?
 In which method Latino done bribe?
 If frank pay no bribe?
 SCR (Self Reference Criterion)
 Bill’s Thinking about Latino Bribe?

20.  Ethical to pay dock workers head.
 Unethical to pay Gefe (Government official)
Difference b/w both bribe?
•Bribe to the Dock workers
•Bribe to the Government official.

21.  Payment of Bribe Extortion
 Payment of Bribe Not lubrication
In which method done bribe?
•In USA Bribe is hide
•In Latino Bribe is openly done.

22.  Sales decrease
 Revenue decrease
SCR (Self Reference Criterion)
Frank think that he is doing best
Ignore the policy of company

23.  Working with in honest way
 Provide good machinery tools

24.  Samiullah
 Student of Business Administration
Department
 University of Sargodha
 Contact # 0300-6117262
 Email: ranasami247398@gmail.com