An airplane manufacturer has spent a great deal of money


An airplane manufacturer has spent a great deal of money developing a new airplane. The company badly needs cash because it is financially overextended. If it does not get some large orders soon, it will have to close down part of its operation. Doing that will put several thousand workers out of jobs. The result will be disastrous not only for the workers, but also for the town in which they live. The president of the company has been trying to interest the government of a foreign country in a large purchase. He learns that one of the key governmental ministers in charge of making the final decision is heavily in debt because of gambling. He quietly contacts that minister and offers him $1 million in cash if he awards the contract for five planes to his firm. The money is paid and the contract is awarded. The president argues that his action is justifiable because the business, the workers’ jobs, and the town were all saved; the minister was able to pay his debts; and the foreign country received the planes it needed. The good produced, he argues, is greater than any harm done by the payment to the minister. Is he correct? (Explain Specifically)

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Operation Management: An airplane manufacturer has spent a great deal of money
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