What Would You Do

What Would You Do?
Chapter 10 Business Ethics in a Global Economy

Dale Goodwin stared out the window of his office in Rio de Janeiro and pondered his dilemma. He has been a salesperson with Acme Oil Pumps, Inc., for 35 years. He has served the company in many regions, and he recently was transferred to Brazil. He has been an average salesperson, but age and retirement prospects have slowed him down, and his overall sales have gradually declined in the past few years. Given his age and his recent transfer, Dale realized that if he made too many mistakes, he would be out of a job and could lose his pension.
Three months before, Dale had made a sales presentation to Oscar Álvarez, head of the government oil fields in Brazil. The two men hit it off and quickly became good friends. Over lunch last week, Oscar had mentioned to Dale that Acme Oil Pumps had a very good chance of securing a $5 million-a-year, five-year contract to supply and install replacement pumps for the Brazilian government’s oil fields. However, Oscar had also informed Dale that three other firms were bidding for the same contract. Because of their friendship, Oscar had said, he felt obligated to advise Dale that Acme’s bid was somewhat high and recommended that the company should lower it. Dale had thanked his friend for this information and resubmitted a slightly lower bid.
Yesterday Oscar had called Dale to tell him that in all probability Acme Oil Pumps would get the contract for the replacement pumps. Oscar had also requested from Dale a small gift of $50,000 for the contract—in essence, a bribe. At first Dale told Oscar that he would have to think about it. Dale had then called his superiors in the United States, who told him that it is against U.S. law to offer bribes to anyone in any foreign country to secure business. His superiors also urged Dale to do what he could to try to secure the contract.
This seemed to be a black-and-white decision, but Dale knew differently. After 35 years with the company, he knew that bribes had often been used to secure large overseas contracts. He also recognized that if he got caught giving Oscar Álvarez a bribe, he would probably be fired. But he knew that if he didn’t win this contract, the chances of his remaining with the company would be slim. With retirement just a few years away, Dale needed his pension. He had to make a decision quickly.
1.Who is affected?
2.What are the ethical and legal issues in this situation?
3.Would your decision change if Dale were younger?