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1. Respond to the below discussion with thoughtful and thorough commentaries.

Should the company pay bribes to enter the Chinese market? Why or why not?

The question here is having a middleman do your dirty work the same as if you do it yourself. It sounds like every other movie. I have never seen one where the boss does the dirty work himself.

The first thing that Pegasus will lose, if it comes out that they are paying bribes to do business, is its reputation. Their corporate culture is built on teamwork, honesty, integrity, and respect. The company lives by those values and their clients trust them. If they do business with China and have to pay bribes, even though they use a middleman, someone will have to start to lie and to cover it up. Pegasus's core values will be overthrown. If this trust is broken, the company will struggle to convince clients that what they did was in everyone's best interest and not only in the company's interest to make money.

On the contrary, many other companies are doing business with China and have to deal with the same issue. In Chinese culture, bribes are normal and excepted.

If the company should pay bribes, is this an example of cultural relativism? In other words, is the company simply doing something that Chinese society finds acceptable?

Different cultures, different habits. If this is acceptable and the norm in China, it sounds like something Pegasus could do. Local laws and ethics are different in every country (Gilbert, 2016, p. 255). However, as we have learned, sometimes we have to go beyond the law. We really have to think about the ethical issue. How does it affect the core values of the company and the relationship with customers and suppliers?

In 1977 the Foreign Corrupt Practices Act was established which forbids bribes within the USA and other countries, but permits "facilitating payment", which are small bribes. In China, for example, it is expected to pay small payments to obtain contracts or to expedite customs. (Gilbert, 2016, p.260). Pegasus would be at a competitive disadvantage if they didn't pay occasional bribes. Therefore, it is cultural relativism.

Assume that you are a manager at Pegasus and the CEO asks you to manage the company's entry into the Chinese market. He also makes clear that you are expected to make the Chinese decision-makers happy by providing them with sums of money. Using your ethical tools from the class, decide what would you do?

I would clearly state the pros and cons about doing business with China. A pro would be that we can get the competitive advantage. Working with China would really help the company. However, if our clients loose trust in us, the business with China is worthless. In the end, it is the customer how makes the business. If we lose them and our valued employees, the business might fail. I would suggest staying away from the deal and focusing on other ways to continue to improve the company and the products.

References:

Gilbert, J. (2016). Ethics for Managers: Philosophical Foundations and Business Realities. https://eds-s-ebscohost-com.ezproxy.umgc.edu/eds/ebookviewer/ebook?sid=6feb8a2d-602f-49dc-9c7c-d6e702349d78%40redis&ppid=pp_27&vid=0&format=EB

2. Respond to the below discussion with thoughtful and thorough commentaries.

• Should the company pay bribes to enter the Chinese market? Why or why not?

I don't believe that paying bribes to enter the market is the best option available to the company. Doing so violates the codes of conduct that the company has set forth as well as likely being illegal. While the CEO may be able to legally claim ignorance if they contract through a third party, it does not change the nature of bribes as a whole. Decisions should be made using the unitarianism concept of the greatest good for the greatest number of people. In this case, that would be the local officials making decisions based upon the best product rather than what would enrich them individually. A small facilitating payment is considered a legal option, however it is not strictly ethical.

• If the company should pay bribes, is this an example of cultural relativism? In other words, is the company simply doing something that Chinese society finds acceptable?

Ignoring the legal consequences of bribery it could be considered an example of cultural relativism. Chinese society could find this practice acceptable. However, when viewed through the lens of the society in which the company currently operates it could not be ethically correct to do so.

• Assume that you are a manager at Pegasus and the CEO asks you to manage the company's entry into the Chinese market. He also makes clear that you are expected to make the Chinese decision makers happy by providing them with sums of money. Using your ethical tools from the class, decide what would you do?

The CEO directly asking a manager to commit an illegal act is ethically wrong in and of itself. I would explain to the CEO that ethically, morally, and legally this is a bad decision for the company. Approaching the Chinese market with caution and understanding while holding firm to the legal and ethical principle of the home country would be for the best in this case.

Gilbert, J. (2016).Ethics for managers:Philosophical foundations and business realities.Routledge Taylor & Francis Group. https://eds-s-ebscohost-com.ezproxy.umgc.edu/eds/ebookviewer/ebook?sid=c48b987f-ae17-4838-a107-aca2b4d19ce9%40redis&ppid=pp_27&vid=0&format=EB

3. Respond to the below discussion with thoughtful and thorough commentaries.

1. Should the company pay bribes to enter the Chinese market? Why or why not?

- No, the company should not pay bribes. Ethically, bribery undermines the values of integrity and honesty (Gilbert, 2016). It can also be illegal under laws such as the U.S. Foreign Corrupt Practices Act. From a practical standpoint, engaging in bribery can damage a company's reputation and lead to long-term detrimental consequences. In this case, Pegasus International's values emphasize integrity, honesty, and respect, which are directly at odds with the practice of bribery (Gilbert, 2016).

2. If the company should pay bribes, is this an example of cultural relativism?

- Cultural contingency is the idea that a person's beliefs, values, and practices should be understood based on that person's own culture, rather than be judged against the criteria of another (Gilbert, 2016). If Pegasus were to pay bribes, it could be seen as an example of cultural relativism, as they would be adapting their practices to align with those prevalent in the Chinese market. However, this does not negate the ethical implications. The act of bribery, even if culturally more acceptable in certain regions, still conflicts with universal ethical standards of business practices and Pegasus's own stated values (Gilbert, 2016).

3. As a manager at Pegasus asked to manage the company's entry into the Chinese market with an expectation to engage in bribery, what should you do?

- As a manager, your actions should align with both legal standards and the ethical values of the company. In this scenario, you should:

- Advocate for Ethical Practices: Present to the CEO the ethical, legal, and long-term business risks associated with bribery.

- Seek Alternative Strategies: Explore lawful and ethical ways to enter the Chinese market, such as building partnerships, understanding the legal framework, and adhering to transparent business practices (Gilbert, 2016).

- Uphold Company Values: Remind the CEO of Pegasus's commitment to integrity, honesty, and respect for individuals. Emphasize that ethical leadership is crucial for long-term success and reputation.

- Consider Whistleblowing: If the company insists on engaging in unethical practices, consider reporting this to the appropriate authorities or an internal ethics committee, if available.

In conclusion, while the temptation to engage in bribery might seem a straightforward path to market entry, it fundamentally conflicts with ethical business practices, can lead to significant legal issues, and is contrary to the stated values of Pegasus International. An ethical approach, even though more challenging, aligns with long-term success and sustainability (Gilbert, 2016).

Joseph Gilbert. (2016).Ethics for Managers: Philosophical Foundations and Business Realities: Vol. Second edition. Routledge.