Reference no: EM13850922

Ethics and governance

Kickbacks

Read the following article and answer the question

Coca-cola said today that two former employees of its Shanghai bottling company had been arrested for corruption.

The two employees worked for shanghai Shenmei Beverage and Food Co, which was licensed to produce Coca- Cola in China and which was part- owned by the US soft drink giant, a Hong Kong- based spokesman for Coca-Cola said

"We can confirm that two former employees at our Shanghi bottling plant have been detained by the police" said the spokesman.

Coca-Cola dismissed report that the case involved bribes to government officials, saying the investigation focused on ‘allegation that the former employees extracted kickbacks from suppliers and embezzled from our bottler'

One employee left the company in early 2008, while the other left in May when the allegations surfaced the spokesman said.

The bottler is cooperating with police in the investigation, he said.

Coca-Cola did not provide further details but the official Xinhua news agency reported that up to 10 million Yuan(1.69 million) could have been misappropriated.

Source: AFP, News.com.au

Required

1) In the article, who are the stakeholders in this situation?

2) What ethical issues are involved?

3) If it is normal business practice to bribe government official in a country that you are dealing with but not in your own country, do you believe it is ethical to do so?

4) Do you believe one country has the right to impose its value on another in this regard? Consider how you would feel if another country tried to impose its value on your country, and consider what overriding human right issues might be relevant.