Question

In: Accounting

In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for...

In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for the construction of mobile internet towers. Royal Paints owns a subsidiary, Telall, which is experienced in phone tapping and building communications networks for countries with poor landline infrastructure. If Telall won a few of these early contracts, it would be sought after for its field experience and expertise. After careful analysis, it prepared a detailed bid for the Communications Minister of Yoyo, building in half of its usual profits margin and providing a contractual guarantee that the project would be completed in two years or less. The multi-million-dollar bid was submitted before the deadline and Telall received notification that it had reached the Yoyo government. Then, despite repeated emails, phone calls, and even faxes to the ministry, there was no news on the bids or the project from the Yoyo government.

Shawn Lamb, the management accountant (and CPA fellow) for Telall, contacted the Australian commercial attaché in Yoyo, who told him that the best chance was to go to Yoyo and try to meet with the Deputy Minister for Communication in person. Lamb prepared thoroughly for the trip, rereading the proposal and making sure that he understood the details.

At the communication attaché office in Yoyo’s capital, Lamb waited nervously for the deputy minister and his assistant. Lamb had come with a clear negotiation strategy to try to win the bid. Soon after the Deputy Minister and his staff arrived and pleasantries were exchanged, he asked a few questions about Telall and the bid and then excused himself, leaving his assistant to talk to Lamb. The Deputy Minister’s assistant indicated clearly that many other compelling bids had been made by firms from around the world. The assistant said “Mr Lamb, I guarantee that Telall’s bid will be accepted if you pay a $1 million commission. Of course, your excellent proposal does not need to be altered in any way”. It was clear to Lamb that the “commission” was in fact, a bribe.

Required:

Lamb described his experience to his friend Amada Hugs, who manages international business development for developing countries. Hugs said that her ‘own personal philosophy’ was to make such payments if they are typical in the local country’s culture. Using the provided readings as a starting point, advise Shawn Lamb on what he should do.

Solutions

Expert Solution

ANSWER :- According to the given passage Shawn Lamb has the two option to adopt either to pay a $1 million commission or to continue with the ethical values (Which don't allows you to pay the bid.).I think Shawn Lamb should follow his ethical values and must not pay the commission,also it is Sad, few people trust their governments or politicianswhile half the people questioned say their government’s action to stop corruption is ineffective.

Ethics can be defined as a system of moral standards or values. Cultural beliefs and programming influence our values. A sense of ethics is determined by a number of social, cultural, and religious factors,this sense influences us beginning early in childhood. People are taught how to behave by their families, exposure to education and thinking, and the society in which they live. Ethical behavior also refers to behavior that is generally accepted within a specific culture. Some behaviors are universally accepted,for example, people shouldn’t physically hurt other people. Other actions are less clear, such as discrimination based on age, race, gender, or ethnicity.

Each professional is influenced by the values, social programming, and experiences encountered from childhood on. These collective factors impact how a person perceives an issue and the related correct or incorrect behaviors. Even within a specific culture, individuals have different ideas of what constitutes ethical or unethical behavior.

Judgments may differ greatly depending on an individual’s social or economic standing, education, and experiences with other cultures and beliefs. Just as in the example of bribery, it should be noted that there is a difference between ethical behavior and normal practice.

Although ,“Corruption has increased over the last three years, say six out of 10 people around the world. One in four people report paying bribes in the last year. These are the findings of the 2010 Global Corruption Barometer.

Most people agree that bribery in any form only increases the cost of doing business,a cost that is either absorbed by the company or eventually passed on to the buyer or consumer in some form. While businesses agree that corruption is costly and undesirable, losing profitable business opportunities to firms that are less ethically motivated can be just as devastating to the bottom line. Until governments in every country consistently monitor and enforce anticorruption laws, bribery will remain a real and very challenging issue for global businesses.


Related Solutions

The Commonwealth government decides to provide a subsidy of 30 for the buyers of bikes. Assume...
The Commonwealth government decides to provide a subsidy of 30 for the buyers of bikes. Assume that the market demand for bikes is given by: p = 300 – 2Q. Assume that the supply curve for bikes is given by p = 30 + Q. Which of the following statements is true? a. Following the imposition of the subsidy the total price paid to sellers including the subsidy decreases by 10 and the deadweight loss that results from the subsidy...
Plan, Develop and Manage a Security Policy Background: Consider that the Commonwealth Government of Australia is...
Plan, Develop and Manage a Security Policy Background: Consider that the Commonwealth Government of Australia is planning to launch ‘My Health Record’ a secure online summary of an individual’s health information. The system is available to all Australians, My Health Record is an electronic summary of an individual’s key health information, drawn from their existing records and is designed to be integrated into existing local clinical systems. The ‘My Health Record’ is driven by the need for the Health Industry...
1) A 7% Commonwealth government bond has three years to maturity. Given that the bond pays...
1) A 7% Commonwealth government bond has three years to maturity. Given that the bond pays coupons semi-annually (i.e. twice a year) and a coupon payment has just been made, what is the present value (price) of the bond if the market interest rate is 9% and the face value of the bond is $100,000? 2) You have observed the returns for an investment in Telstra shares for the last five years. This shows returns of 23%, -17%, 8%, 22%...
You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature...
You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature on 15 February 2027 and have a coupon rate of 4.75%. If your purchase will settle on 27 April 2012, and the quoted yield for the bond is 5.81%, what is the cash price of the bonds to the nearest dollar?
You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature...
You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature on 15 February 2022 and have a coupon rate of 4.75%. If your purchase will settle on 27 April 2012, and the quoted yield for the bond is 3.92%, what is the cash price of the bonds to the nearest dollar?
Part One Plan, Develop and Manage a Security Policy (10 marks) Background: Consider that the Commonwealth...
Part One Plan, Develop and Manage a Security Policy Background: Consider that the Commonwealth Government of Australia is planning to launch ‘My Health Record’ a secure online summary of an individual’s health information. The system is available to all Australians, My Health Record is an electronic summary of an individual’s key health information, drawn from their existing records and is designed to be integrated into existing local clinical systems. The ‘My Health Record’ is driven by the need for the...
Part 1 -- Bonds: National Company issued a 7.5% bond, dated January 1, 2020 with a...
Part 1 -- Bonds: National Company issued a 7.5% bond, dated January 1, 2020 with a face amount of $600,000 on January 1, 2020. The bonds mature on December 31, 2026. The market yield for bonds of similar risk and maturity was 5.5%. Interest is made semiannually on June 30 and December 31. REQUIRED: Determine the price of the bonds at January 1, 2020 (be certain to include all of the “Given” information as discussed in class). Prepare a bond...
If you could be part of one of the three branches of the federal government, which...
If you could be part of one of the three branches of the federal government, which would you select and why? Outline three positive and three negative reasons of holding that position, whether it's Speaker of the House, the president, or a Supreme Court justice. Which role's responsibilities appear intriguing? Which appear overwhelming?
You are serving on a jury which began in January 2020. A plaintiff is suing the...
You are serving on a jury which began in January 2020. A plaintiff is suing the city for injuries sustained after falling down an uncovered manhole in 2018. In the trial, doctors testified that it will be 5 years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You and your co-jurors propose that the plaintiff receives the following judgement: 1-) 2 years of back pay ($54,000 in 12/2018, $62,000...
KNIGHTS ENGINES INC. The government has recently invited submissions from the private sector for the supply...
KNIGHTS ENGINES INC. The government has recently invited submissions from the private sector for the supply of one thousand V-16Z (Class A) automobile engines. Although these particular engines only have eight cylinders, they can easily duplicate the speed and performance of a sixteen cylinder engine. Their compact size and durability make them ideal for military operations and it is for this reason that the military has decided to incorporate them into their new line of All Terrain Vehicles (ATVs). For...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT