Moore Electronics sells automated lighting for airport runways. The government of an eastern European country has offered Moore a contract to provide equipment for the 15 major airports in the country. The official in charge of awarding the contract, however, is demanding a 5 percent kickback. He told Moore to build this into the contract price so that there would be no cost to Moore. Without the kickback, Moore loses the contract. Such kickbacks are considered a normal way of doing business in this country.
1. What should Moore do?
Answer: Moore Electronics should attempt to find the whistle blowing mechanisms and report this behavior to the higher government authorities in that East European country. Moore Electronics should gather evidences against the official and make it public so that people will come to know about this incidence. Giving bribe may get the contract for Moore without additional costs but if this gets detected, the company will not only lose the contract but it will also suffer from the loss in reputation and legal penalties. Hence this should be avoided and the matter should be reported by following a proper channel as per the laws and regulations in that East European country.
Moore Electronics sells automated lighting for airport runways. The government of an eastern European country has...