I. Point of View:
II. Statement of the Problem:
The dilemma of Alexander whether to accept the deal or compromise his ethics.
1. Appeal on the proposal and proceed to the regular bidding process.
2. Advocate correct sound business ethics.
IV. Areas of consideration:
1. Alexander Gavin, a Senior Project Manager of El Sahd Construction Company in Kuwait. Mr. Gavin was offered a proposal by the Ajax’s Manager to increase the bid amount to $33 Million of the project in Iran.
Of the $3 Million increase, $1 Million will be his share for not disclosing the matter. If Mr. Gavin will not accept the deal, he will experience a physical harm. He was already involved in the pay-offs before, but this time he was put in to a situation where his ethics is on the line. Gavin needs to make a decision that will benefit the company in the long run.
2. El Sahd Construction Company is a prosperous company, with an excellent reputation for producing a timely and cost effective way on major construction project in the Middle East.
Two months ago, Mr. Gavin participated the bidding on Iran project. The company put in a bid of $30 Million to Ajax Ltd. to be the principal sub-contractor on a project in Iran.
3. Ajax Ltd is a British based-company. As the company’s business culture, the Ajax’s Manager had a proposal to Mr. Gavin that the bid price will be amounted to $33 Million in order to pursue the project. The increase of $3 Million will be $1 Million for the Ajax’s Managing Director, $1 Million Ajax’s Manager and $1 Million to Mr. Gavin. Ajax’s Manager chose Mr. Gavin is the key in order to close the deal at their requested bid amount. In order to Mr. Gavin will not disclose the matter, he will receive a $1 Million share. Non cooperation of Mr. Gavin may mean physical harm coming to him as part of the exchange.
4. Cultural relativism is the idea that morality is relative to a particular culture, society and community. There are no standards to judge the level of morality in a particular culture and anyone can do is to understand the moral codes and custom of a given society. It’s stated in the case that bribery is a common business in the Middle East.
V. Alternative Courses of Action:
1. Reject the proposal, stick to the regular bidding procedure with $30 Million deal and wait for its consequences.
2. Accept the offer given by the manager of Ajax Ltd. and sacrifice his ethics
3. Talk to his superiors and legal team to come up necessary decisions about the case.
VI. Conclusion & Recommendation:
It is recommended to Alexander Gavin to do 3rd course of action. Gavin needs to make a decision that will benefit the company in the long run. Talk to his superiors and legal team to come up necessary decisions about the case. Appeal on the proposal and present a new proposal that has profit and follows correct sound business ethics. The company must prioritize long term goals instead of short term gains. If Ajax Ltd. will not agree on the appeal of the proposal, then there’s no threat of losing money. Company is rich and does not necessary need to secure this single project. They may hire a bodyguard to secure the safety of Mr. Gavin. It’s a win-win situation for both parties, if Mr. Gavin accepts the deal. It’s also important to know if by accepting the deal, the company will benefit from it by gaining a huge profit yet it will leave a mark of unethical behavior that will eventually weaken the company’s image and Gavin’s reputation and career may be put at risk.