7:51 PM Sun Mar 20 new chat neral Notices Royal Visit - Pres utor balance is $45. Y -9901: She real p Case 18: Bribery and International Business Tad Benson is worried. A salesperson for American Machinery, Inc., he has been placed in charge of negotiating an important sale of heavy construction equipment to the govern- ment of a small but rapidly developing nation. Deeply in debt, financially overextended, American has staked its future on penetrating foreign markets. The president of American Machinery has been assiduously trying to interest the government of this foreign country to make a major purchase. Tad's potential contract for American is not only a very large one; it could open the door to even bigger sales in the future. If he lands the contract, Tad's pro- motion in the firm is virtually certain. If American does not obtain some very large orders soon, it very likely will have to close a material part of its operations, which will cause many workers to be laid off, and also will be disastrous for the local communities adversely affected. Tad has been convinced he would succeed until he speaks with a high level government official who is involved in the negotiations. Tad's bid is looked upon very favorably, in price and quality, the official explains, and it is in fact the lowest bid. However, to Tad's surprise, a $100,000 "commission fee" to the official now will be necessary to legally secure the contract. If Tad does not pay the fee, the official "regrets" that the contract will go to a competitor. Tad knows that the sale is critical to the well-being of his company and its stakeholders. He also believes that the company's customers would get the best possible deal by buying American's equipment; and he knows that $100,000 is a trivial sum compared to the poten- tial profits represented by the contract. Yet, although he is aware that such payments are common practice in many countries, he always has felt that they were wrong; he has never before used them to secure a deal; and he is aware there may be serious legal ramifications to making such a payment. Questions for Discussion 1. Is it legal for Tad to pay this commission fee or is it an illegal bribe under the For- eign Corrupt Practices Act? Discuss. 2. Is it moral for Tad to pay this bribe pursuant to the doctrines of ethical egoism, ethical emotism, and ethical relativism? Discuss. 3. Is it moral for Tad to pay this bribe pursuant to the doctrines of Utilitarianism and Kantian ethics? Discuss. 94%