You open your email to see a message from Belinda. She asks you to review what s

Question

You open your email to see a message from Belinda. She asks you to review what she calls the Pay to Play case. Thomas believes that Phone and Build is the most competitive bidder with a quality product, but he knows that there is little chance Phone and Build will win the government contract or get equipment into Growastan to carry out operations without approval from the deputy minister of communications. Thomas decides to call Belinda Lee to get some advice about how to proceed. Belinda has asked you to write a memo that addresses the issues Phone and Build needs to consider as it decides how to handle this situation. You may need to review the following topics as you work to meet Belinda's request: International Business Ethics, Laws, and Regulations and Cross-Cultural Ethical Business Decision Making. Belinda has asked you to include the following information in your memo. As you think about your answers to each of the following questions, take notes and create an outline for your memo: What is the recommendation to Belinda.

Explanation / Answer

My recommendations to Belinda:

Moral Principles that drive an Individual or an organization’s behavior on the activity that is being conducted is generally referred as Ethics. Any initiatives that affect the quantitative and qualitative values of an organization viz., Trust, Performance, Collaboration and Innovation etc., are referred to as fundamental Business Ethics.

Phone and Build have astonishing products which are made up of top quality material and have competitive pricing for its phones. It has a thorough capability to win any competitor bid. Unfortunately, it needs to shell out huge bucks to make it successful in the government bid, where it should bribe the minister to win the government contract.

It is concerning to note that a good product has no value until it is sold at a huge cost. "Pay and Play" is a way for the ministers to earn money for their personal needs. This clearly indicates that you cannot play until you have money in your pockets.

The Minister is very corrupted. He had called me to aside to either send him $100,000 in a bag, or give him a Maserati, or either donates $100,000 to his son's political campaign. Apart from paying him for pay and plug, he has also given us an opportunity to pay $1000 as an expedited fee to know the results of the bid an hour before they are made public.

The issue here is, can we afford to pay him his commission which is unethical? or should we back out from the bid? If we pay him the commission, we will have a bright future, and he will not involve in our matter again. But, if we refuse to give him now, we may lose the opportunity to someone else, and it may take time for us to outshine our competitor.

From the code of business conduct and ethics perspective, it is appropriate to have an open, transparent communication with the minister first. If there is no opportunity, refuse to pay him money and shall wait for other opportunities that are done the right way.

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