This case is from stnoer's 'Management' 6th edition Book.

1. Case Study: Alexander Gavin’s Dilemma “Cultural Relativism
and Business As Usual”
Synopsis of this case
This case presented by a letter form, where Alexander Gavin wrote to a Professor called Hennessey
about an ethical dilemma he faced in his work. Alexander Gavin is a Senior Project Manager for the
EL Sahd Construction Company in Kuwait. The company is rich, renowned, well-organized and cost
effective. Two month back the company bid a $30 million on a project in Iran to be the principle
subcontractor. They had built a huge profit in it and they also expected to bargain with Ajax Ltd, the
British based company asking for the bid. However when Alexander Gavin met up with the manager
of Ajax, the manager told him they were get the job if they make the bid $33 million; giving the
reason that $1 million would go straight to the pocket of Ajax Ltd’s Managing Director in London
and another $1 million in to his and rest of $1 million to Alexander’s account. The reason for
Alexander Gavin receiving a share; he doesn’t talk about this transaction with nobody else. If he do
so; he will get physically punish. However this share of money didn’t make him happy; in
consequence this went against his ethics.
Identification of the problem
From this case study it is cleared that Alexander Gavin faced an ethical problem. He is put in to a
situation where his ethics is on the line. This project is very profitable and company wouldn’t lose this
opportunity. On the other hand he was heard of cases like this in which if a bidder fails to cooperate
then he might face some threats of physical harm. Alexander Gavin is very well aware of this type
bribe existing in the Middle East. For this reason this situation has left him mixed with the common
morality and he doesn’t know what to do.
Solution
From my point of view, there were four possible solutions in this case;
1. He can stick with his ethics and reject the proposal and wait for its consequences.
2. He can talk to his superiors about the case and take the decision.
3. He can try to contact with other manager or executive from the Ajax Ltd to make them aware
of the corruption existing in their company and take legal action against the manager.
4. He can sacrifice his ethics and accept the offer given by the manager of Ajax Ltd.

2. Evaluation
I think the best solution would be the number four for the Alexander Gavin. I highly recommend this
option because it creates a win-win situation for both Alexander and the manager. I think this extra $3
million will not affect company’s huge profit margin that they expected. On the other hand EI Sahd
Company will make an intimate relation with Ajax Ltd as also Alexander save himself from physical
harm.
If Alexander refuses this offer then he might keep his ethical beliefs and gain some mental
satisfaction. He would have deprived his company from a deal worth $3 million. Incidentally here he
might face other ethical dilemmas, if he reject the deal, he could have been spoiled a source of income
for the employees of the EL Sahd Construction Company. Only for his selfish ethical reason he has
no right to deprive the overall interest of the whole employees.
On the other hand if he rejects the deal some other construction company might make the deal and do
the task and El Sahd Construction Company unreasonably lose their opportunity.
Decision
From this case study we can come to the decision that Cultural relativism tells us to understand the
moral codes and customs of a given society and not to judge the morality of a particular culture. If
cultural relativists are right, the search for common morality is over. So Alexander has to maintained
allegiances to a different nations, culture, codes and laws. As the problem refers to cultural relativism,
Alexander should understand this carefully rather than made judgments.
Since literally no harm will be done if the deal is made and since it concerns the source of income for
a lot of people and finally keeping the fact of utilitarianism in mind; I come to the conclusion that
accepting the offer and going ahead with the deal will be the perfect solution to the problem.
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