Starnes-Brenner Machine Tool Company
Starnes-Brenner Machine Tool Company
To Bribe or Not to Bribe
Introduction
Case Summary Ethics Legality Similar Cases Real World Lessons Learned
Case Summary
Starnes-Brenner Machine Tools Company
Wants more international presence
Latino – Fictional South American Country Frank – 10 years of success
Retiring Replacing Frank
Bill – Young, motivated, rising star
Case Summary Cont.
Conflict between Frank & Bill
Frank plays by Latino “rules”
Frank pays mordidas (Bribe money) to get equipment passed by government officials States business will fail without the payment of mordidas
Bill follows a more strict sales style
Bill absolutely opposes the idea of mordidas States business will be successful without paying mordidas
Ethics
Bill believes its unethical
own personal beliefs as well as refusing to break US laws Believes they are not encouraging bribery to spread but rather just accepting the Latinos ways of doing business
Frank sees nothing wrong with it
Legality
Foreign Corrupt Practices Act (FCPA)
US law prohibits any types of payments to a foreign official that will influence an act or decision to obtain an unfair advantage
Similar Cases: Halliburton/Nigeria
Halliburton’s Kellogg Brown & Root subsidiary, as well as 3 other companies are suspected of having paid a $180 million bribe to the former government of Nigeria in order to build a liquefied-natural-gas plant
Valued at $4 billion to $6 billion Other companies are from France, Italy, and Japan
Halliburton/Nigeria Cont.
Vice President Dick Cheney was the former CEO of Halliburton from 1995-2000
Case spans 1995 through 2002 starting the year VP Cheney took over as CEO
The alleged bribe has been under investigation since last year by a French judge. The Judge has gone so far as to suggest that he may summon Cheney to France
To Bribe or Not to Bribe
Introduction
Case Summary Ethics Legality Similar Cases Real World Lessons Learned
Case Summary
Starnes-Brenner Machine Tools Company
Wants more international presence
Latino – Fictional South American Country Frank – 10 years of success
Retiring Replacing Frank
Bill – Young, motivated, rising star
Case Summary Cont.
Conflict between Frank & Bill
Frank plays by Latino “rules”
Frank pays mordidas (Bribe money) to get equipment passed by government officials States business will fail without the payment of mordidas
Bill follows a more strict sales style
Bill absolutely opposes the idea of mordidas States business will be successful without paying mordidas
Ethics
Bill believes its unethical
own personal beliefs as well as refusing to break US laws Believes they are not encouraging bribery to spread but rather just accepting the Latinos ways of doing business
Frank sees nothing wrong with it
Legality
Foreign Corrupt Practices Act (FCPA)
US law prohibits any types of payments to a foreign official that will influence an act or decision to obtain an unfair advantage
Similar Cases: Halliburton/Nigeria
Halliburton’s Kellogg Brown & Root subsidiary, as well as 3 other companies are suspected of having paid a $180 million bribe to the former government of Nigeria in order to build a liquefied-natural-gas plant
Valued at $4 billion to $6 billion Other companies are from France, Italy, and Japan
Halliburton/Nigeria Cont.
Vice President Dick Cheney was the former CEO of Halliburton from 1995-2000
Case spans 1995 through 2002 starting the year VP Cheney took over as CEO
The alleged bribe has been under investigation since last year by a French judge. The Judge has gone so far as to suggest that he may summon Cheney to France