Read the ethics case listed below and answer the questions associated with it. Then, think critically and answer the additional questions posed that relate to doing business internationally and the potential conflicts between domestic and foreign cultures.
Ethics case 1: Rio Tintos Bribes in China
Read the ethics case Rio Tintos Bribes in China at the end of Chapter 5 of your text and answer the following questions:
Bribery cases often involve a company making illegal payments to government officials to land lucrative contracts. So often, legislation is focused on payments made to individuals. Are facilitating payments or bribes between companies the same as bribes paid to government officials? Can a company itself be prosecuted for these payments?
The culture of giving and receiving payments is ingrained in China. On the other hand, accepting and paying bribes is a violation of Rio Tintos code of conduct. When does a payment stop being a gift and turn into a bribe?
What is guanxi? How would you advise your companys personnel to act regarding expectations of guanxi in China?
How could moral imagination have been used by Chinese steel company managers to help ensure they received the iron ore needed for production?
Questions Related to Operating Internationally
What would you advise that corporations do to recognize the new worldwide reach of anti-bribery enforcement related to the FCPA and the U.K. Bribery Act?
Should a North American corporation operating abroad respect each foreign culture encountered or insist that all employees and agents follow only one corporate culture?
What should a North American company do in a foreign country where women are regarded as secondary to men and are not allowed to negotiate contracts or undertake senior corporate positions?
What five standards or principles would you recommend be implemented by multinational corporations to promote ethical behavior in various global situations?
