Managing Ethics and Legal Compliance

Business

Project description
MODULE EIGHT Journal Entry Two: Managing Ethics and Legal Compliance
Managing for Ethics and Social Responsibility in a global environment is not an easy task. Being ethical can have different
shades of meaning to different cultures. For example, in the United States it is viewed as being dishonest/corrupt to give
bribes, but in other countries, ‘gift-giving’ is an honest way of doing business and not considered corrupt. How do companies
find the right balance between local customs and laws within their country?

Now, to complete the task below;

Read the Gift Case Study review and answer all the questions at the end of the case.

THE GIFT CASE STUDY

You’re an account executive with a multinational financial firm, and one of your biggest accounts is that of a shipping
magnate in Greece. Several months after you’ve arranged very complex financing to build a new fleet of oil tankers for this
customer, he asks if you and your wife would attend the christening of the first tanker. You of course, agree to attend—it
would be an insult to him if you didn’t. When you arrive, he asks your wife to break the traditional champagne bottle over
the bow of the tanker. Two weeks after the christening, your wife receives a package from your customer. In it is a gold
bracelet with her initials and the date of the christening set in diamonds. To return the gift would insult your customer,
but accepting it would clearly violate your company’s policy. What should you do?

Case Questions-

1. What kind of an ethical issue is this?

2. Why would it be against corporate policy to accept such a gift? Do you agree with the policy? Why or why not?

3. Put yourself in the “shoes” of each of the parties. How might they think about the issue?

4. Imagine that you are the corporate vice president in charge of business ethics and conduct for your firm. Would you be
willing to change this policy? Why or why not?