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Case Study

The case study discusses an ethical dilemma faced by Maria Thompson, a project manager at GlobalTech Solutions, who must decide whether to allow 'facilitation payments' to expedite government approvals in India, which contradicts the company's ethical code. The situation highlights the tension between adhering to corporate ethics and meeting project deadlines in a culturally different environment. It raises questions about business ethics, cultural relativism, and the role of corporate ethical codes in multinational operations.

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64 views1 page

Case Study

The case study discusses an ethical dilemma faced by Maria Thompson, a project manager at GlobalTech Solutions, who must decide whether to allow 'facilitation payments' to expedite government approvals in India, which contradicts the company's ethical code. The situation highlights the tension between adhering to corporate ethics and meeting project deadlines in a culturally different environment. It raises questions about business ethics, cultural relativism, and the role of corporate ethical codes in multinational operations.

Uploaded by

akki150agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Case Study: Ethical Dilemma at GlobalTech Solutions

Background:
GlobalTech Solutions (GTS) is a multinational IT services company headquartered in the United
States with operations in over 20 countries, including India, China, Germany, and Brazil. The
company prides itself on its strong code of ethics and emphasizes integrity, transparency, and
respect for cultural differences.

The Situation:
Maria Thompson, an American senior project manager, has recently been assigned to lead a large
software implementation project in India. The project has a tight deadline, and any delays could
result in financial penalties and loss of client trust.

During her stay in India, Maria learns from her local team that to speed up certain government
approvals (such as telecom infrastructure clearance), it is common practice to offer "facilitation
payments" to local officials — a practice considered a form of corruption in the U.S. and against
GTS’s global code of conduct.

The local team argues that such payments are small, routine, and expected in the Indian
bureaucratic system. They explain that without them, the project could face delays of several
weeks. Maria is under pressure from her supervisors back in the U.S. to meet deadlines at all
costs.

Maria’s Dilemma:

 Should she allow the team to proceed with the facilitation payments and ensure project
success?
 Or should she adhere strictly to GTS’s ethical code and risk project delays and possible
penalties?

Exam Questions

Section A: Conceptual Understanding (Short Answer)

1. Define business ethics and explain its importance in a global business environment.
2. What is meant by cultural relativism in business ethics?
3. Differentiate between bribery and facilitation payments with examples.
4. Briefly describe the role of corporate ethical codes in multinational companies.

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