The document presents a case study about Wilson Chemicals Ltd, a British subsidiary operating in Ghana. There is disagreement among the British and Ghanaian leaders about the subsidiary president Joseph Okono's practice of using £50,000 in "incentives" (bribes) to government officials to gain contracts and minimize red tape. While Okono and the vice president believe the incentives have helped the business succeed, the director wants to fire Okono for dishonesty. The case outlines the strengths and weaknesses of the current situation, the problems presented, and options for how to proceed regarding Okono and the use of incentives.

1. Case Study : Wilson Chemicals Ltd.
SEDOUD Saïd
HIRIDJEE Camil
ESCE 318

2. What does it inspire you ?

3. Table of contents
I. Presentation of the case : Overview
II. Strengths and Weaknesses of the Existing Situation
III. Statement of Problem(s)
IV. Options

4. Overview
• Wilson Chemicals (Ghana) Ltd. : subsidiary of the British
company Wilson Chemicals
• Participants :
• Mr. Joseph Okono : Subsidiary President, Wilson
Chemicals (Ghana) Ltd.
• Mr. Gerald Howard : President, Wilson Chemicals
• Mr. George Teele : Vice President, International
Division, Wilson Chemicals
• Mr. Ian Thomas : Director, West African Division,
Wilson Chemicals

5. Overview
• Head office of Wilson Chemicals : London, England
• The subsidiary is located in Ghana, AFRICA

6. Overview : Dates
• Since its establishment in 1962, the subsidiary had grown at a steady rate
despite the economy difficulties and political changes.
• 1972 : Mr. Joseph Okono, a Ghanian who studied at Oxford, was
appointed « Subsidiary President ».
• In 1984, the British-base auditing firm detected that Mr. Okono had used
£50,000 as « incentives » to bureaucrats in government agencies, to gain
key contracts, minimize red tape and streamline procedures. Sylvia
Appleby, an accountant for this auditing firm, sent a letter to Mr. Ian
Thomas, Director (West African Division) to explain that £50,000 were
unaccounted by Mr. Jonhson, Financial Officer of the company.
• Few days later, Mr. Okono replied to the President, Mr. Howard.

7. Overview : Dialogue
• The dialogue is between three leaders of Wilson Chemicals
• Mr. Thomas’ point of view is to fire Mr. Okono because he was dishonest
• Mr. Howard and Mr. Teele are more interested in the end rather than in
the means
• They are saying that results are satisfying the British company
• There is a problem with the Rawlings’s regime according to Mr. Thomas
• Mr.Teele & Mr. Howard think that Mr. Okono will not have government
corruption’s problem.

8. Overview : Synopsis of exhibits
• Letter from Sylvia Appleby, an accountant for the auditor to Mr. Thomas
Exhibit 1: Cover Letter from Sylvia Appleby, Accountant for Firmin and Goodheart, Accompanying Her Financial Report on Wilson
Chemicals (Ghana) Ltd.
Firmin and Goodheart
Certified Public Accountants
67 Grange St. London, ECS, England Telephone 01 424-0670
12 February 1984
Mr. Ian Thomas
Director, West African Division
Wilson Cemicals
74, The Oaks
Landon, WC2
Dear Mr. Thomas:
Enclosed is the financial report of your subsidiary, Wilson Chemicals Ghana, Ltd. During the audit made by our Accra office at your request several
discrepancies were reported. Some of the errors were procedural; others, I'm afraid, were more serious.
Specifically, I refer to approximately £50,000 which was unaccounted for by the financial officer, Mr. G. Johnson. When queried by our auditors, Mr.
Johnson replied that the money had been spent by Mr. Okono and his executives as “incentives” to increase or maintain business. There did not seem
to be any attempt to cover this expense; however, Mr. Johnson noted that in the past these “incentives” had been written off as sales promotion costs.
In light of these findings, we find it impossible to certify your subsidiary as financially in conformance with accepted accounting practices. Please
contact me if you have any further questions regarding this matter.
Very truly yours,
Sylvia Appleby
SA:bf
Enclosures

9. Overview : Synopsis of exhibits
• Letter from the manager of the Ghana subsidiary, Joseph Okono, to the president of Wilson chemicals
Exhibit 2: Letter from Okono to Howard
Wilson Chemicals (Ghana) Ltd.
P.O. Box 272 Accra, Ghana
20 February 1984
Mr. George Howard
President
Wilson Chemicals
74, The Oaks London, WC2, England
Dear Mr. Howard,
Your letter of 13 February arrived here today. Your concerns are justified, but things are not (exactly) as they seem.
You accuse me of bribery. I do not deny it. Indeed, some £47, 000 were expended last year, a year of some chaos may I remind you, in an effort to maintain sales. I assure you that this
money was spent solely for this purpose; neither I nor any other Wilson executives profited personally from this outlay.
The economy situation here in Ghana is not good. Last year was a year of drought. Food production dropped. Cocoa, the main crop of Ghana, declined to 110,000 tons, the lowest yield
since the 1920s. And yet, Mr. Howard, Wilson's sales of Chemical fertilizers did not decline. Fuel shortages are acute. We have, however, had enough fuel to continue operations at a
normal level. Other companies have failed. The Ministry of Industries has halted or made difficult the importation of machinery. Some companies wait months for needed goods to clear
customs. Our goods are cleared in days.
Why have we been successful when others have not? The answer lies in an outlay of £47,000 as incentives to individuals to give Wilson “extra consideration.” Of course, this practice is
undesirable, yet, it has been necessary to preserve business—your business, my business.
In your letter you state concern about the Rawlings government. I too am concerned, yet not because I fear interference in the practice of rewarding incentives to key administrators. I,
probably more than anyone else, would be delighted if “corruption” were ended, if business could proceed without the need for inducements. What concerns me about Mr. Rawlings is his
anti-business stand. This is far more worrisome than his “crackdown” on corruption, as this stance could really imperil Wilson.
Since Rawlings and the PNDC took power again at the end of 1981, there has, however, been little change in the way business has been conducted. In fact, we have made great efforts to
work with the government, and I see no reason why this should change. The truth is Ghana needs Wilson. Wilson also needs Ghana. It is a give-and-take relationship. Our goal, as is yours,
is not to damage this relationship.
Mr. Howard, trust me. For the last thirteen years I have made Wilson work, and work well. I see no reason to believe I cannot continue to do so, but I must be able to have a free hand (as I
have had). Wilson will not fail in Ghana as long as I am allowed to direct the subsidiary's policies as I see fit.
I remain.
Loyally yours,
Joseph Okono

10. Overview : Synopsis of exhibits
• Letter from the manager of the Ghana subsidiary, Joseph Okono, to the president of Wilson chemicals
Exhibit 2: Letter from Okono to Howard
Wilson Chemicals (Ghana) Ltd.
P.O. Box 272 Accra, Ghana
20 February 1984
Mr. George Howard
President
Wilson Chemicals
74, The Oaks London, WC2, England
Dear Mr. Howard,
Your letter of 13 February arrived here today. Your concerns are justified, but things are not (exactly) as they seem.
You accuse me of bribery. I do not deny it. Indeed, some £47, 000 were expended last year, a year of some chaos may I remind you, in an effort to maintain sales. I assure you that this
money was spent solely for this purpose; neither I nor any other Wilson executives profited personally from this outlay.
The economy situation here in Ghana is not good. Last year was a year of drought. Food production dropped. Cocoa, the main crop of Ghana, declined to 110,000 tons, the lowest yield
since the 1920s. And yet, Mr. Howard, Wilson's sales of Chemical fertilizers did not decline. Fuel shortages are acute. We have, however, had enough fuel to continue operations at a
normal level. Other companies have failed. The Ministry of Industries has halted or made difficult the importation of machinery. Some companies wait months for needed goods to clear
customs. Our goods are cleared in days.
Why have we been successful when others have not? The answer lies in an outlay of £47,000 as incentives to individuals to give Wilson “extra consideration.” Of course, this practice is
undesirable, yet, it has been necessary to preserve business—your business, my business.
In your letter you state concern about the Rawlings government. I too am concerned, yet not because I fear interference in the practice of rewarding incentives to key administrators. I,
probably more than anyone else, would be delighted if “corruption” were ended, if business could proceed without the need for inducements. What concerns me about Mr. Rawlings is his
anti-business stand. This is far more worrisome than his “crackdown” on corruption, as this stance could really imperil Wilson.
Since Rawlings and the PNDC took power again at the end of 1981, there has, however, been little change in the way business has been conducted. In fact, we have made great efforts to
work with the government, and I see no reason why this should change. The truth is Ghana needs Wilson. Wilson also needs Ghana. It is a give-and-take relationship. Our goal, as is yours,
is not to damage this relationship.
Mr. Howard, trust me. For the last thirteen years I have made Wilson work, and work well. I see no reason to believe I cannot continue to do so, but I must be able to have a free hand (as I
have had). Wilson will not fail in Ghana as long as I am allowed to direct the subsidiary's policies as I see fit.
I remain.
Loyally yours,
Joseph Okono

11. Overview : Synopsis of exhibits
• Gross sales, Wilson Chemicals (Ghana) Ltd. 1973-1983
Gross Sales
Wilson Chemicals (Ghana) Ltd
0
2
4
6
8
10
12
14
16
18
20
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
MillionsofPoundsSterling

12. Overview : Synopsis of exhibits
• Brief Summary of the Rawlings Government Crackdown on Public Corruption
Exhibit 4: Brief Summary of the Rawlings Government Crackdown on Public Corruption*
In 1982, Mr. K. Edusei, a former leading member of the now banned People's National Party, was imprisoned for accepting £5,000 from an Italian businessman.
*Source: The Economist Intelligence Unit, Quarterly Economic Review of Ghana, Sierra Leone. Gambia, and Liberia, No. 4, 1983, p. 9.
In 1983 the crackdown continued:
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.

13. Strengths and Weaknesses of the
Existing Situation : communication
Strengths Weaknesses
• Okono clearly explains to Howard
all facts
• Okono used money without
asking to the hierarchy
• There is a disagreement between
Teele, Howard & Thomas
• Lack of communication between
the subsidiary and the British
company

14. Strengths and Weaknesses of the Existing
Situation :Intercultural differences
Strengths Weaknesses
• Okono knows how to make
business in Ghana ( Thomas is
showing lack of experience)
• Thomas wants to fire Okono
because he doesn’t understand his
way of working
• Wilson and Teele understand
Okono and they know they have to
trust him

15. Strengths and Weaknesses of the Existing
Situation :Ethics
Strengths Weaknesses
• It helps the Ghanian Government
to earn money easily
• This is immoral to use bribes in
the business
• The image of the company can be
affected by scandals

16. Strengths and Weaknesses of the Existing
Situation :Management
Strengths Weaknesses
• The board of directors trust in
Okono’s management
• There is a conflict between
Thomas & Howard + Teele about
Okono’s case
• Thomas is not able to give
feedbacks to Okono : he has to
speak with the CEO

17. Strengths and Weaknesses of the Existing
Situation :Finance
Strengths Weaknesses
• The gross sales increased at a
steady rate between 1973 & 1983
• The company lost $50.000 as
incentives
• Johnson had unaccounted bribes

18. Statement of Problem(s)
Okono's practices are problematic because they are unethical but judged as
common and without intent to being hid in this case.
Regarding changes in political conduct due to a new government, should Wilson
keep doing business the way Okono did or should it fully adapts to the new
Regime (without bribes) ?

19. Option 1: Status quo
Strengths Weaknesses
• The business will grow well • The company has a risk to be
involved in a scandal
• The company will be allowed to
trade without bureaucratic red tape
and complex procedures
• This is unethical to stay in this
situation
• There will be a tension between
Thomas and the board of directors

20. Option 2: Keep Okono, allow him to use bribes,
give more money to invest, hire a new
employee to help him for development
Strengths Weaknesses
• Gross sales will skyrocket •Still unethical situation
• Teele & Howard will be aware of
everything done about incentives
• Wilson will give more
responsability to a business
involved in corruption

21. Option 3: Keep Okono but disable him to
give "incentives“
Strengths Weaknesses
• A local manager will stay : Okono • the gross sales will not grow as
before
• The company will be allowed to
trade honestly in this country
• Okono will feel misunderstood
• No more unethical process

22. Option 4: Keep Okono but hire someone to
supervise him + stop all bribes + monthly
reporting
Strengths Weaknesses
• Thomas will succeed on his
demand
• Okono will think that they don’t
trust him
• The British company will be able
to control more the subsidiary
• Okono will feel controled
• the supervisor may don’t know the
local practices

23. Option 5: Fire Okono and tell Thomas to
find a new subsidiary president
Strengths Weaknesses
• Thomas will succeed on his
demand
• the gross sales will not grow as
before
• The company will be allowed to
trade honestly in this country
• Okono who was a Ghanian expert
will be fired for someone who has
to prove his leadership and
experience
• No more unethical process

24. Thanks for your attention
Let’s just image, you are in Okono’s situation :
How do you react ?
Do you stop using bribes and make the business
more transparent or you keep these technics in
order to grow sales ?