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1- Is what Frank did ethical? By whose ethics-those of Latino or the United States?
The corruption that requires a foreign company to pay bribes to achieve sales in foreign countries with less developed economies is an issue that is very common. In these countries, the bribery is accepted as a way of life as seen in the Starnes-Brenner machine tools Latino operations. However, I do not agree with Frank's justification of the bribery as a way of life by insinuating that the low wages unable to sustain the cost so living as a cause. If the tradition and demography are considered for the mordidas that is discussed for the specific business case it can be seen that h bribes often are takenby the people in higher ranking positions with higher pay. This makes the economic aspect of the argument ineffective as the labourers who are paid much lower do not get a cut of the money charged by the jefe or government officials (McGee, 2015). In addition to adding to the economic disparity of the income of the people, the bribes allow the company to make less profit and thus reduce tax revenues and undermine the impact of the financial assistance paid by the government schemes. Therefore, there is no way the operation of the company official for the Latino operations of Starnes-Brenner machine tools can be justified ethically by using the financial disparity to support the practice of mordidas or illegal cash payments (Siddiqui, 2019).
The argument made by sales person Frank regarding the hypocrisy of the United States operations in paying for lavish dinners and other recreations or payments is justified. These dinners are used to disguise the illegal payments and the mordidas that is paid is divided between the good and services. The argument made by Bill about the deals made during these dinners is flimsy as the deals could just as easily have been made in the boardroom instead of five-star restaurants (Benk, McGee&Budak, 2018). However, pointing out the same cultural acceptance of the bribes elsewhere does not make the practice ethical for the Latino operations. I think that the payments to the dockworkers and Jefe are just as illegal as the lavish dinners and have the same economic impact of the population and the company profits.
2- Are there any legal differences between the money paid to the dockworkers and the money paid the jefe (government official)? Any ethical differences?
As the organization Starnes-Brenner machine tools havemade a significant move to integrate the international operations in a cohesive manner the practices adopted when the operations were based on short term profitability as exporters cannot be continued. The discrepancy caused by the different "culture of corruption" in the different countries can affect the integration efforts in a negative way making the changes in practices a necessity (Philp, 2016). While not ethically acceptable the better disguising the payments might be in store for the new operation as Frank's assessment regarding difference is culture is correct even if his justification for the corruption is unfounded. The payment made to the dockworkers cannot be justified in any way but the payment to the Jefe is disguised as some unidentifiable alterations to the machines making them comparatively more ethical.
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