Ethical Dilemma Case Study Essay

Ethical Dilemma Case Study
Ethical Dilemma Case Study

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Ethical Dilemma Case Study

Case study 1

• Your company is currently discussing a contract for the construction of solar panels with the Government of Vindalubia. Your company is requested pay a ‘motivation fee’ for the Minister of Energy of Vindalubia in order to facilitate the signature of the contract with the Government of Vindalubia. The CEO of the company asks you to look into this issue. Do you pay the motivation fee? Why? What are the legal aspects you will take into consideration in order to justify your decision? Please draft a document explaining your decision, your argument and the legal reasons for your decision.

Case study 2

Your company signed a contract for the construction of solar panels with the Government of Vindalubia (fictitious state). Your company paid a ‘motivation fee’ for the Minister of Energy of Vindalubia in order to facilitate signature of the contract with the Government of Vindalubia. A few months later, the Government of Vindalubia terminated the contract. The CEO of the company is really concerned about this issue. CEO asks you to look into this issue.

•What should the company do?

• What are the methods of resolving the dispute? Why?

• Please draft a document explaining your decision and the reasons why you propose your answer.

Case study 3

You recently joined your company as the Chief Compliance Officer. The company is a medium sized company based in Riyadh doing business in the construction industry. The CEO of the company is really concerned because the Company does not have a Compliance and Ethics Programme. The Company previously had difficult experiences in negotiating contracts with new clients and subcontractors.

The CEO asks you to propose a new Compliance and Ethics Programme to be discussed at next Board Meeting. The CEO also wants you to make proposals for a Corporate Governance of the company if this can facilitate the setting up of the new Compliance and Ethics Programme.

• Please draft a document detailing your proposed Compliance and Ethics Programme and a new a Corporate Governance structure.

• Explain the reasons for this new programme, the objectives and the legal background.

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Ethical Dilemma Case Study

Case Study 1

The first case presents a scenario where the company is in talks with the government of Vindalubia regarding the contract to construct a number of solar panels. In the course of the discussions, the Minister in the Ministry of Energy requests for payment of a “motivation fee” in order to facilitate the signature that will allow for awarding of the contract with the government in Vindalubia. The discussion below is presented to the company’s CEO as an explanation of whether or not the firm should pay the “motivation fee” requested by the minister, implications of actions, a legal view of the scenario, as well as a recommendation of the decision the firm should make.

The meaning of a “motivation fee”

The Minister, by asking for a “motivation fee”, is asking for something of value to them in exchange for the signature. In this case, the term fee implies something of monetary value i.e. legal tender, is expected to change hands. The sole purpose of the exchange being as a means to influence the Minister of Energy to carry out a given action, whether legal or otherwise. In this regard, therefore, the “motivation fee” is understood to be a bribe to influence the Minister to act in favor of the company by rewarding the tender to construct the solar panels in Vindalubia in exchange for a given amount of money.

Possible decisions and implications

Given the prevailing scenario, as well as the firm being in need of the contract, it is evident a decision is needed. The decision involves a choice of whether or not to present the Minister with the required “motivation fee”. Both choices have implications, and they ought to be addressed prior to making the decision. If the firm chooses to offer the Minister of Energy the requested “motivation fee”, they will outrightly have secured the contract. This, however, at the cost of breaking the law, and, therefore, exposing the firm to possible litigation arising from the illegitimate transaction…..

Case Study 2

The second case represents a scenario where the Government of Vindalubia has awarded the company a contract to construct solar panels. The firm has gone through the required process and signed the contract. However, in a bid to secure the contract, the company paid a “motivation fee” to facilitate the signature to award the contract as requested by the Minister of Energy in Vindalubia.

In spite of the payment of the “motivation fee” as agreed, the Government of Vindalubia terminated the contract a few months later. Below is a discussion that expounds on the scenario, shows a number of methods of solving the arising dispute, provides a legal perspective of the issues in the scenario, and provides recommendations on the choices and implications of the same.

The arising dispute and possible methods of resolving

The prevailing dispute regarding the given scenario between the company and the Minister of Energy in Vindalubia stems from the premature termination of the awarded contract to construct solar panels by the government. The firm may decide to address this dispute in a number of ways. Key among these is the use of contract law. This is the preferred approach proposed to the Chief Executive.

Possible decisions and implications

The use of contract law as proposed to the CEO of the company would suffice as an effective method of addressing the dispute between the company and the government. If the Chief Executive upholds this decision, the firm may choose either to handle the matter amicably between the parties involved out of court or to file a lawsuit. The lawsuit may serve to expose the illegitimate and unethical transaction between both parties involving the payment of a “motivation fee”. On the other hand, the amicable settlement may result in a much better result that favors both parties….

Case Study 3

The third case presents a scenario where the Chief Executive Officer has concerns over the lack of a Compliance and Ethics Program at the firm. The CEO tasks me, as the new Chief Compliance Officer at the company, to propose and develop a new compliance and ethics program for the firm.

Proposal for a new ethics and compliance program

For the most part, the ethics and compliance program is meant to provide general guidance on behavior, ethical standing, and following the prevailing rules. The introductory segment of the ethics and compliance program for the firm stipulates the need and importance of following all rules and regulations outlined in the various company statutes. In addition, the introduction section also outlines the individuals and stakeholders covered by the various codes of ethics and rules of conduct of the firm.

The ethics and compliance program outlines the offices where an aggrieved employee, distributor, supplier, or other stakeholder covered by the relevant rules is supposed to access help and have their concerns addressed. The ethics and compliance program outlines all the necessary laws that are to be adhered to strictly by all. In addition, the ethics and compliance program identifies and classifies all areas covered by the various policies. This allows for easier navigation and access to specific rules as needed.

Some areas of importance in the ethics and compliance program include the outlining of laws and regulations covering intellectual property, privacy, conflicts at the workplace, integrity and dealing fair, provision of equal opportunities, and laws that relate to safety, health, and the environment. These laws will relate to not only the firm, but must also fall within the legal framework established in Riyadh, and other laws that govern the operation of the construction industry in the country.

Proposal for corporate governance

The corporate governance section is meant to provide an overview of the managerial and staff structure of the firm and the roles of each level of authority. In addition, the corporate governance model delimits the communication structure regarding the information flow within the firm. This corporate governance structure ties in to the proposed ethics and compliance program by availing information about the flow of communication from the various managers.

In addition, the corporate governance helps by providing a representation of the various officials where a member of staff in the firm can access help about the various rules and regulations outlined in the ethics and compliance program…..

Ethical Dilemma Case Study

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