Company A, US company has a subsidiary in Country Z, where various forms of brib

Question

Company A, US company has a subsidiary in Country Z, where various forms of bribery are accepted and expected. Company A sent on of its top US managers to Country Z to oversee the operations. While there he: A-Paid the equivalent of $200 to a govt inspector to reschedule the inspection date of a new manaufacturing facility from April 15 to Feb 15.

B-Paid an average of $50 each to 4 local police officers who are in charge of patrolling the area around the new manufacturing facility. The officers have agreed to increase the number of times they check the area.

C-Company N a domestic company is in competition with Company A for a govt contract. Company A has learned that N has given approx. $5000 to the official who will make the final contract decision. To remain in the running, Manager M authorized Company A to pay an equal amount to the official. Is this acceptable?

D-the electric utilities are govt owned and operated. Due to the frequency of severe storms, there are often power outages due to downed lines. Manager M has paid the official in charge of coordinating repair crews $200 to ensure that the manufacturing plants power is one of the first restored.

Under the Foreign Corrupt Practices Act as amended which of the above activities do you thik would be considered illegal? From an operations standpoint, which of the above activities would be considered bad management practice? Are there solutions other than bribery?

Explanation / Answer

Company A Solutions could decrease bribery but could not completely end them.

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