Essay: Paying Bribes For Small Suppliers - A Case Study In Choice.

Individual Analysis

Discuss about the Case Study Paying Bribes for Small Suppliers Have Choice.

Individual Analysis

Bribe entails taking or getting something valuable like money in order to get someone to do something. There has been an increased case of bribe especially to many organizations today. In the case study presented it highlights on the bribery cases especially to people working in private sector organization (Abbink, 2004). The concept of bribery in the organization was thought to only come from public organization, but this has cropped to the private organization as well. In this Case Study, the protagonist as Deepak is upright and does not agree with the aspect of bribe, organization should practice fairly, and honestly since, it is the most ethical thing to do (Ahmed, Chung & Eichenseher, 2003). One of the identified roles in the play that can be identified is that of the main protagonist Deepak who is the sales manager.  Deepak comes from a family of business people. His father ran a partnership with three of his friends. The individual joined his family business in mind 2008 and assigned on the role of the sales manager, during the period there was recession in the country (Carrigan, & Attalla, 2001). The role-play of this individual comes on the scene when he had received a call from the purchasing manager of a small company that wanted the t-shirt made for the workers and the order was valued at around Rs. 2,000,000 (Carroll & Shabana, 2010).

What should you say to whom, when and how?

The conversation of Deepak and purchasing manager happen on the telephone. Deepak gets a call from the purchases manager, who places an order for t-shirt for the worker in his company. Deepak tells him he will draft a tender and present the deal for the t-shirt. He becomes so excited since the company have gotten a contract, and begin the process of making a tender. The next day he present their tender to that company and awaits whose tender would be accepted since there were other 4 companies applying for the same. The purchases manager explain that they are thinking considering his contract and that he wants ten percent as commission if the contract his awarded. A heated conversation briefly happens before the two and Deepak seek sometime to think about it.

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

What should you say to whom, when and how?

The primary contentions on this case are the situation of pay off. Deepak is shocked to see people utilized in the private part transparently requesting an influence (Jonson, McGuire and Cooper, 2016). This happened when the purchases manager requested a ten rate as commission from the organization to get delicate. Remuneration in the delicate has showed in various courses like for this situation. Different ways might be from impact, irreconcilable circumstance and the exchanging of impact (Kinderman, 2016). These perspectives have kept on showing in the acquirement cycle and need arises to deliver on such issues in order to have transparency, validity and business respectability (Küpers, 2016).

What is at stake for the key parties (including those who disagree with you)?

Various entities are at stake in this situation, the business and the partners. On the business the image be may in jeopardy especially when other competitor know the kind of business the company is doing (Parris, Dapko, Arnold & Arnold, 2016). There should be fair trade aspects and each party should compete fairly without favor from another entity. The partners may lose if they did not take this deal. The company is lavishing to survive in business due to recession that had hit the country forcing many businesses to take little order from the company. They need to solve the cash flow problem (Islam, Dissanayake, Dellaportas & Haque, 2016).

3. What levers or arguments could you use to influence those with whom you disagree?

The leverage I would have on the purchasing manager is to tell him would report the matter to the seniors in their company because he is tarnishing their image. He is undertaking a business risk and does not promote transparency at the company he works at (Peršič, Markič & Peršič, 2016).

What is the most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

The issues that need to be addressed are the bribery case of the purchasing manager in the process of procurement cycle. The individual does not follow the code of ethics that guide on how the tenders are located (Rose-Ackerman, 2013). Bribery is one of misconduct in the case of procurement. There is need to address this issue especially to the management of my company and that of the ones that are seeking orders. There should be free fair trade in all activities a company undertakes and ethical aspect should be observed (Resick, Hanges, Dickson & Mitchelson, 2006).

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

Individual Analysis

On this case study it highlights on how there are bribery cases even in the private sector. Previously it was thought that these things occur with the government official but it seemed it was not true. Bribery is in all the level and industry irrespective of the sector. Further, it highlights how a certain company struggles during a recession times to keep the business a float (Rose & Peiffer, 2016). All the partners and determined to do what it takes to get new order for the business and enable it to continue in the operation.

What should you say to whom, when and how?

The role that have identified is that of Mr. Ashish. He is one of the partner in the company. On the script, there is a conversation that happens between him and Deepak when he wanted to seek advice in regards to a client who wanted a bribe so that he can reward the contract to the company. In this scene for the script happens a conversation of Mr. Ashish who is the uncle of Deepak and one of the partners of the company. This individual has handled similar cases in regards to obtaining new orders for the business.

Seek approval of the other partners.

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

The main arguments of on this are to expound on the need to practice good ethical behavior. It should be part of the culture in the business (Rose & Peiffer, 2016). In the case, it clearly shows an argument occurring between Deepak and his uncle on the issue of bribe. This issue is unethical to the business and it should be clearly be explained at length on the dangers it possess to the business such as loss of confidence by the customer and it might motivate them to turn to the competitor for the same services you offered before thus, loss in the business opportunities (Svensson, 2002).

What is at stake for the key parties (including those who disagree with you)?

The issue at stake is the loss of business opportunities for the partners and the tarnish of the image of the organization. The organization if they do not give a commission the purchase manager is asking for, they will lose the contract to the competitors, which would not be good to the business. On the other hand, if they take give the bribe in the end the image of the company would be ruined especially if the press unmasked them, no organization will be willing to work with them (Uusitalo & Oksanen, 2004).

What is at stake for the key parties (including those who disagree with you)?

What levers or arguments could you use to influence those with whom you disagree?

The main argument to employ here is to use case examples of the various companies, which had suffered if they adopted the option they were opting to take of offering bribe. I would also use the approach of looking for other alternative to leverage on the business by seeking transparent contract rather than short cut ways to be awarded the contract (Williams, Martinez-Perez & Kedir, 2016). Nonetheless, there is need to address the issues associated with the unethical practices which are regarded with the highest impunity level as barbaric.

4. What is the most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

There are ramifications of engaging in unethical behavior, which the partners want to undertake. One of the effects of the poor ethical and moral practices in the business is lack of confidence and trust in the business. There is need for a company to maintain trust with the clients in order to maintain a profitability streak over a longtime (Zadek, 2006). A loss in the trust can reduce on the customers confident and motivate them to turn to the competitors, which will not be a good move for the company. This argument should be made to Mr. Ashish when he was asking that the offering bribe was not a new thing in the business, and Deepak should be the one to explain on the aspect in details of the effects of unethical business practices.

Individual Analysis

On the case study, it highlights on the issues of bribery that is seen in the private organization. It had been thought that it is only government officials who are corrupt; Deepak has proved this is not true. The case highlights on the challenges this individual faces especially when he has to convince the partners that they should not condone on corruption but rather enumerate on the best ethical practices in the business (Zadek, 2006). On this case, one of the highlighted role is that of the purchasing manager. This individual has undertaken bribes from various companies in order to give them contract on a given tender. On the script below highlights, the conversation he has had with Deepak and his requirement conditions to award the contract.

What levers or arguments could you use to influence those with whom you disagree?

What should you say to whom, when and how?

The script is a telephone conversation, where we have on one end the purchase manager of a small company seeking an order of t-shirt from Deepak Company. On the conversation the purchases manager tries to convince Deepak that he wants the ten percent as commission to award the contract.

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

The main argument for the counter are issues to do with offering of bribe to get a tender for new order from the purchases manager (Rose-Ackerman, 2013). This issues need to be addressed since it has become one of the causes of business failure today. In addition, this concept has affected many organizations irrespective being in a particular sector. Tackling bribery issue should be addressed since it is not a business ethical practice, and should be avoided on the highest priority (Svensson, 2002).

What is at stake for the key parties (including those who disagree with you)?

Loss of business opportunity and a job for the stake parties. The purchase manager is at a risk of losing his job if Deepak reported him on the allegation of corruption. On the other hand, Deepak Company is at the stake of losing the tender if they do not give a commission to the purchase manager.

What levers or arguments could you use to influence those with whom you disagree?

The purchase manager may seek to lever with Deepak to see his point of view on this opportunity if he let it slip away (Svensson, 2002). He may try to convenience him that it is a win-win situation for both parties. Nobody has to know of the business arrangement they will undertake.

What is the most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

There is need to address the ethical concern within an organization towards the decision-making. Bribery issue is affecting the well-being of many businesses today and it is repulsive and recurrent at every aspect (Beschorner, 2006). The decision of the organization to behave ethically is a moral one, and the employees should decide on what they think is the right course of action. It thus, may involve rejecting on the route that would lead to the biggest short-term profit and project on the long-term benefit to the organization (Hammersley & Atkinson, 2007).

Individual Analysis

Individual Analysis

On this case study, it highlights on the issue of bribery activities in the business environment. This issues have been previously been seen only through government officials and seeing it to the private sector shows clearly that it is an adamant issue that needs to be addressed as it does not  demonstrate an ethical business practice. The case unfolds of a family company in India where one individual tries to stick on his stand that in business there should be ethical behavior and that no such case as bribery should exists. There are those individuals who agree it is the norm in the business and everyone is doing it so they ought to offer bribe also to get contract.

What should you say to whom, when and how?

On this script, the role that have been identified is that of the partners. It highlights on the argument that exists between the four partners and Deepak. Deepak seeks to get an audience with his father who is the partner and the other three partners and try him tries to explain and convenience them that bribery is not good for the business and it will lead to great ramifications in the future if they condone it (Beschorner, 2006). The scene is set and the four partners have granted Deepak the audience to express his views on this issue. The meeting is at the office of his father.

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

The main argument for the encounter is that the partners are taking a standpoint on the issues of running the company. Deepak seeks audience to highlights the issue of bribery and tries to convince them it is unethical for the business to engage to such a trade. The partners have been running the company and have always given bribe to get the contract. The argument is to try to rationalize on whether the issue is ethical or not.

What is at stake for the key parties (including those who disagree with you)?

The issue that is at stake is the loss of business for the partners. Previously when the partners had refused to offer a bribe there was did not get contract, and when they started to offer them, they got some of the contract. They do not wish to loss the contract they intend to do what it takes to get the contract. On the case of Deepak he is not, willing to offer the bribe according to him this is unethical.

What should you say to whom, when and how?

What levers/arguments could you use to influence those with whom you disagree?

 The argument to employ to influence on those that disagree is to come up with a plan of action to tackle on the issues that are raised. It is important to listening at each person point of view on the issues raised and make a unanimous decision based on the reasons provided and their rationale.

What is the most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

The persuasive response on the issue of bribery would be to elaborate on the dangers it possess long run on the business on the other hand if the business does not get the contract it may likely suffer greater loss. This becomes a situation of a dilemma, the best way forward is to weigh the benefits and the loss on the business and take the best course of action. The partners need to decide what they want for the organization.

Group Analysis - “Scenario Title”

What are the main arguments you are trying to counter? That is, what are the reasons and rationalizations you need to address?

The main argument to encounter and address on this case study is the issue of bribery in the organization. There is a need to address this phenomenon, since the private organization are being also affected by it (Chen, 2016). Organizations need to practice ethical business practices and avoid issues of corruption since they are likely cause adverse effect in the end.

What is at stake for the key parties (including those who disagree with you)?

The issue at stake for the main parties are loss of consumer confidence, loss of resources. Nonetheless, there is issue of opportunities due because of disagreement to take bribe (Ferrell & Fraedrich, 2015).

What levers/arguments could you use to influence those with whom you disagree?

The levers to use to influence on these parties that disagree is to come up with the alternative strategy in order to get new business opportunities rather than using dubious means to get the business (Fernando, 2016).

What is your most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

The issues of bribery in business leads to diverse consequences in the long run of the business. . The decision of the organization to behave ethically is a moral one, and the employees should decide on what they think is the right course of action (Crane & Seitanidi, 2013). It is imperative to follow the required code of conduct for the business and avoid situations that would lead to bribery issues.

What are the main arguments you are trying to counter? What are the reasons and rationalizations you need to address?

“Scenario Title”

Cast

Deepak

Purchase Manager

Partners 1,2,3,4

Action Start

Scene 1

 The scene start with a phone conversation between purchase manager and Deepak.

The purchasing manager makes the call to order for t-shirt for the workers and the conversation went as follows.

(Deepak) phone ring….grrh…grrh….

Purchasing manager: Hello is purchasing manager of a small company and wants to obtain an order of t-shirt for my workers. We are willing to settle fifty percent of advance for the order and make the payment for the rest in 30days time.

Deepak: (signs of excitement...) yes I can get on the order will draft a tender for the same. Deepak knows will solve the cash flow problem of the company for the next three to four months. (He drafts the tender and provides the company).

Shortly after… he receives a call from the purchasing manager and after a lengthened discussion, the manager expounds on the topic.

Purchasing manager: To bargain on your contract and if you want it to pass I need ten percent as my commission.

Deepak:  (Astonished…. (In silence)… What? ……. Thinking to himself is this person asking for a bribe from me. Does people employed from private sector brazenly ask for a bribe.

Deepak: I will think about your offer give me some time.

Purchasing manager: Okay.

Scene 2

In the second scene, it is between Mr. Ashish who is uncle to Deepak and a partner in the company and had worked on getting new orders before Deepak had joined up in the company.

Deepak: (calls the uncle to inquiry on the case asking for the bribe)….  Hello uncle?

Mr. Ashish: Hello Deepak how are you how may help you.

Deepak: I want to ask you something it regards a certain client.

Mr. Deepak: How about it…. Tell me.

Deepak: There is a certain client who wants new order for the t-shirt for his worker, but the issue is he wants to get a commission to reward the contract. How should I handle this, since I think it is unethical for the business to pay bribe to get a certain favor.

Mr. Ashish: (Not surprised)… this is in order I do not see any problem to pay him, we have been doing this for a long time, before we missed contract to the competitors when we refused to pay. I know it seems unethical for the business, but we need the contract for keep the business afloat. Moreover, everyone is doing it, so arrange and pay him.

What is at stake for the key parties (including those who disagree with you)?

Deepak: Surprised… but uncle, as much as the business is not doing well we cannot risk the reputation of the company in the future. Tarnish the name especially if it becomes known of how we operate.

Mr. Ashish: Arguing… the firm would not suffer any cost since the commission is factored in the total cost of the good and factored in the price of the order. Kindly organized with him and pay commission between 3-5 percent since the survival of the business depended on the contract.

Deepak: …Still not convinced, as this was ethical behavior…he decides to seek approval of the other partners.

The scene is set on the purchasing manager and Deepak. He tries to convenience him of the deal on the tender. The conversation is below.

Purchase manager: Hello, Deepak, have looked at your contract and I believe your price is reasonable I believe we can work together.

Deepak:  Wonderful news to hear sir how will we proceed with the work

Purchase manager:  we are still looking at the tender of the other clients but I think you are favorite for the contract.

Deepak: wonderful news am happy to hear the news

Purchase manager: there is also an issue we have to talk about, if I to award you the contract I need ten percent as a commission.

Deepak: what that sound like a bribe and it is unethical business practice, you should reward the contract based on merit. Rather not on the concept of “scratch my back, I scratch your’’

Purchase manager:  we do not refer it as a bribe it is a token of appreciation for the award off the contract as there are many competitors for the same contract.

Deepak: let me think about your proposal will get back at you.

Scene 4

The scene takes place at the office and conversation begin between the partners and Deepak.

Partner 1: Thank you all for coming to this meeting, there have been concerns that have been raised by Deepak that needs to be address. He has sought an audience with us and we have obliged to take on the offer to hear what he has in mind.

Partners: (they all accept the invitation and together they respond) … thank you for invitation.

Partner 1:  Deepak its your chance to elaborate on what you wanted to talk to us, we are all ears.

Deepak: Thank you all for accepting to hear from me, I know you are busy people so let me get to the point (he applaud first… he need to articulate on his speech).  The issue am having current is bringing new business in the company, over the last six months we have had significant drop in the sales volume, and no new client want to do business with us, due to effects of recession that has occurred. Nonetheless, one purchasing manager of a small company wanted an order of t-shirt for his employees. I drafted the tender and provided him with it to know our best offer on the deal. The contract is worthy 2,000,000 rupees and this surely will help the company for the next few months on the financial problems. The issue that is most disturbing to me he highlighted that he wanted ten percent as commission from this deal if he was to award it. To me this is bribery and it should not be condoned in any business, since it will ruin on the image of the company in the end, it will also leads to loss of confidence, from investors and customers.

What levers or arguments could you use to influence those with whom you disagree?

Partners: Not surprised on the issue raised…

Partner 1: We need the contract to keep the company afloat.

Partner 2: other competitors are doing the same

Partner 3: this issue has affected previously, when we refused to offer bribe.

Partner 4: for now we need no ethical practices as you put them, we need to keep the business running.

Deepak: (Shocked)… What! This is a serious issue to the company reputation; we can get new business elsewhere.

Partner 1: Can you deliver on that?

Deepak: Yes, I can give me some time, to work on something

Partner 2: Where will you get such a client quickly and the survival of the company is at stake.

Deepak:  I will work with my sales team to deliver on the target. We need to change the way we are doing business and enumerate good business practices.

Partner 3: How much time do you want?

Deepak: Just one month, will have come with a plan of action to leverage on the company and bring good ethical business.

Partner 4: let us give this new blood a chance, I think it is time we changed on the way we carry business, we do not need to risk the loss of many clients over one contract.

Partners: (they all node their end with agreement)

Partner 1: we will give you one month to come with a plan of action, if at that time no plan in motion; we will take the deal of purchasing manager.

Deepak: Okay will do my best to deliver.

The meeting was adjoined with Deepak having a task to fulfill and needs to keep his word on delivering a new client.

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