Case Study:
Mike O’Brien is a new B2B sales representative for a U.S.-based construction equipment company with responsibilities for the Asian and Eastern European markets. Thanks to a multimillion-dollar loan from the World Bank, one of the less-developed nations in Africa is able to shop for equipment to improve the country’s road system. Mike’s company is one of several around the world invited to submit a proposal. Mike is responsible for coordinating the development of the proposal, which is to include a long-term parts-and-service contract.
In his first meeting with the government minister responsible for the purchase, Mike is made aware that if his company wins the contract, it would be expected to pay the minister $100,000 in U.S. currency as well as provide a 10% commission on future parts-and-service revenues. Mike’s firm is bound by the U.S. Foreign Corrupt Practices Act and has a policy forbidding accepting or offering bribes. But he knows plenty of contractors still do this sort of practice to win projects.
Mike’s experience before this current assignment entailed calling on contractors in the United States and coordinating military purchases in Europe. He has no experience with the present situation he faces, but he knows that getting this contract would be a major deal, both for the company and for his personal commission income.
Requirements:
In your paper, address the following:
The sales ethics at work here. Is it ever okay to take bribes or grease payments?
What are the requirements under foreign law?
What options does Mike have that will ensure him the award of the contract? How would you, if you were Mike, handle this situation?