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.


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