ou just received notice that a large shipment of manufacturing supplies you have

Question

ou just received notice that a large shipment of manufacturing supplies you have been waiting for has been held up in customs for two weeks. A local business associate tells you this is normal and that you are expected to give customs agents some “incentive money” to see that everything clears quickly and easily. Review the section of the textbook in chapter 3 titled, The Global Business Environment. Enter the discussion with your fellow classmates and explain how you would handle this situation?

Explanation / Answer

The suggestion given by local business associate is not the right or sustainable approach to handle the situation. The custom agents some “incentive money” amounts to bribery, which is a criminal offense, and its consequences for the individual as well as the company can be counterproductive. There are three primary reasons why the company official should avoid this practice. (1) This is unethical, corrupt and unsustainable practice. Incentive money once paid, will make the customs agents habitual of that and then it becomes a precedent, leading to a vicious cycle corrupt practices breeding more corrupt practices. (2) Being a criminal offense, it can lead to prosecution and hefty penalty (3) it can bring disrepute to the organization and the official.

I would handle the situation by ensuring that applicable rules and regulations are complied to and the documentation is complete for clearance of the shipment. I would allow due time to be taken as per the procedure established by law. However, if the customs agent further unnecessarily delay the clearance, and if he seeks some “incentive money”, then I would collect the evidence and report the matter to vigilance enforcement agencies.

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