Assignment
Geletex, Inc., is a U.S. telecommunications corporation attempting to expand its operations worldwide. As Geletex begins its operations in other countries, it has discovered cultural, governmental, and ethical standards that differ significantly from country to country and from those in the U.S. Geletex has had a code of ethics for its U.S. operations since 1975. The company's director of compliance, Jed Richardson, provides ongoing training for employees, runs a hotline through which employees can report problems, and is well known and respected throughout the company for his high standards and trustworthiness. As Geletex's international operations grow, Jed is becoming increasingly uncomfortable with what appear to be double standards for the company's U.S. operations and its operations in other countries. Jed, who has been traveling to each of the Geletex international offices, has found the following situations, which since have been causing him sleepless nights:
In Lima, Peru, Jed reviewed financial records and discovered that the commissions expense for the branch was unusually high. Geletex pays its salespeople commissions for each commercial customer they recruit for cellular or long-distance services. Jed knows from experience that some companies pay unusually high sales commissions to disguise the fact the sales personnel are paying kickbacks in exchange for contracts. In the U.S., such payments would be commercial bribery and a clear violation of Geletex's code of ethics. When Jed confronted the Lima district manager and questioned him about the high commissions, he responded, "Look, things are different here. We've got a job to do. If the company wants results, we've got to get things moving any way we can."
In Stockholm, Sweden, Jed noted a number of college age student employees who seemed to have little work to do. Again, Jed questioned the district manager, who responded, "Sure, Magnus is the son of a telecommunications regulator. Caryl is the daughter of a judge who handles regulatory appeals in utilities. Andre is a nephew of the head of the governing party. They're bright kids, and the contacts don't hurt us. In the Scandinavian culture, giving jobs to children is part of doing business."
In Mumbai (Bombay), India, Jed noted that many different payments had been made to both the Indian government and government officials. When Jed voiced his concern, the district manager responded, "I can explain every payment. On this one, we needed the utilities [water and electricity] for our offices turned on. We could have waited our turn and had no services for ninety days, or we could pay to get moved to the top of the list and have our utilities turned on within 48 hours. On the check for licensing, again, we could have waited six months to get licensed or pay to expedite it and be licensed."
Jed is an expert on the Foreign Corrupt Practices Act (FCPA). The act permits "facilitation" or "grease" payments, but prohibits bribes. Facilitation opens doors or expedites processes; it does not purport to influence outcomes. Jed is unsure about Geletex's international operations and compliance with the law. He is very unsure about Geletex having an international code of ethics.
Answer the following question: What ethical standards should Jed develop and apply to Geletex's international operations?
2 pages, Times New Roman, 12-point, single spaced.
I. Identify the problem.
a. What is the environment?
b. What is the situation?
c. What are the options?
II. Identify the people and groups affected by choosing one of the above options.
a. Individuals: self, boss, client, subordinate, etc.
b. Groups: company, public, family, profession, etc.
III. Build a decision framework - What is going to be the basis for my decision?
a. Consequentialism - looking for good results or least harm
i. What will be the result of the decision for me personally?
ii. How are the above people and groups affected?
iii. Are they affected negatively or positively?
b. Deontology - duty and obligation
i. How deep is my obligation to each of the people and groups?
ii. How do I prioritize conflicting duties?
c. Virtue ethics - Who am I?
i. What fundamental principles are in play?
ii. What norms or traditions I practice are being challenged?
iii. What personal values that I hold are being affected or threatened?
1. Am I being asked to do something that I don't believe in?
2. Am I being asked to ignore something that I feel must be addressed?
IV. Make a decision
a. Base your decision on values that are supported by principles
b. Make a commitment to the decision
V. Take action
a. Do what you feel is right for the right reasons - Never mistake temptation for opportunity
b. Let the chips fall where they may - A person who ignores wrong becomes either an accomplice or the next victim
VI. Learn
a. Accept responsibility for your decision and your actions
b. Understand the difference between providing explanations and making excuses
c. Listen to feedback so you can learn from everyone's mistakes
d. Incorporate changes where possible to avoid similar situations in the future.