Experiential exercise

Consider the ethical dilemmas in the following situation and decide what you would do. Then meet in small groups of students and come to a group consensus. Discuss your decisions with the class.

You are an Australian, the general manager in Istanbul of an Australian-owned trading firm called Kangaroo. A Romanian company, Roma, has called for tenders. For years Kangaroo has tried to do business with Roma without success—though you’ve done well elsewhere in Eastern Europe.

You mentioned this to one of your Turkish managers and expressed disappointment at not being able to ‘crack’ this potentially profitable market. The Turk, Mehmet, said nothing at the time, but wanting to please you, he got in touch with the purchasing manager of Roma, whom he had met before. The purchasing manager promised to give Mehmet copies of all Kangaroo’s competitors’ bids if Mehmet were to pay him a 2% commission on the resulting sales to his company, should Kangaroo win the tender.

Mehmet accepted the offer, received copies of the competing bids, and on that information made an offer on behalf of Kangaroo, and won the tender. You learned the whole story when you reviewed the income and expenses chart and found the 2% commission. What are you to do?

If you refuse to accept the business—after seeking it so keenly, and without explaining why now you don’t want it—Kangaroo will probably never get another order from any Eastern European country. If you accept it and refuse to pay the 2% commission you will betray your loyal local manager who has your best