38. Anna sat in her office rereading a letter she had received from a high-ranki

Question

38. Anna sat in her office rereading a letter she had received from a high-ranking government official in Domara, a small and developing country. Anna had recently been appointed vice president and head of the Domara operations for Mason Oil Exploration Company. She had been in management for over 15 years, including several years in the international office of Exxon/Mobil, and was well respected for her expertise and ethics. Mason's president had recently stated at a top manager's meeting, "If anyone can get the job in Domara done with integrity and make a profit, it's Anna." In his letter, the Domaran official had requested that $50,000 a year be paid into his U.S. account in order to ensure that Mason operations proceeded smoothly. He also said that this arrangement had to be kept secret from the Domaran government and the management at Mason. The daily staff meeting was being held in 20 minutes, and Anna wondered if she should divulge the letter's contents. She knew that the official had the power to stop operations at any time if he were not satisfied with the arrangements. Even brief delays would be damaging since Mason was smaller than its competition, who had been doing business in the country for some time. Anna's predecessor had informed her that other companies had been contacted for under-the-table contributions for social programs that never seemed to get st $50,000 and would have to involve other Mason executives if she decided this was the way to proceed. arted. She did not have direct access to A. Identify and describe two arguments for and two arguments against making the payment. B. Discuss how a firm must balance and reconcile the ethical traditions of home and host countries and how that would play out in this case.

Explanation / Answer

Two arguments in favor are:

The arguments againt it are:

In this case the payment must not be given and the ethical ways of doing the business should be followed:

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