Reference no: EM133399421

Case Study: The Dun & Ready (D&R) Company, a U.K. retail store, identifies a growing Latin American market and sends an employee (Raul) to Mexico City to negotiate contracts for obtaining building permits. The permit process takes a very long time in Mexico, but D&R management has not been patient. Raul's manager approved bribery in order to get the permits in quick fashion. Raul paid more bribes as each new store opened. Raul's 'success' in Mexico led to a promotion, and the company was very pleased with his job performance. However, soon after, Raul learned about an investigation into the manner used to obtain the building permits in Mexico.

Questions:

1. What are the issues surrounding business practices in other cultures and the justification, using cultural relativism, of 'when in Rome, do as the Romans do'?
2. Did Raul make the right choice? Why or why not?
3. Although the U.S. Foreign Corrupt Practices Act (FCPA) allows for small payments to foreign government to speed up services, the U.K. Bribery Act does not allow for such bribes. Does the U.K. business practice put the company at a competitive disadvantage? Why or why not?
4. In your opinion, based on the case study details, were the D&R leaders sending the right message in supporting Raul and the use of bribes?
5. Furthermore, Raul's manager instructs him to destroy incriminating evidence, deny the bribes, and 'do whatever it takes' to make sure his government contact denies all payments from the company. While highly unethical, these acts could deepen Raul's legal problems. Should Raul follow his manager's instructions, or refuse? Why or why not?