Question
George Williams owns an automotive parts supply company in Southfield, Michigan. For the past 10 years, he has grown the company, Williams Supply, from a
George Williams owns an automotive parts supply company in Southfield, Michigan. For the past 10 years, he has grown the company, Williams Supply, from a small operation to one with over $50 million in sales and 200 employees. His largest customer is General Motors, with approximately 60% of his sales. As one of a handful of new parts suppliers to GM, he prides himself on delivering outstanding value to his customers based on the highest standards of excellence. Several U.S. automotive companies, including General Motors, are trying to expand their operations in Asia. In response to this, George has set up a parts distribution center in Thailand due to cheap labor, a highly skilled workforce, and central access to a shipping port. He has hired a local consultant, Mr. Sumardi, to help him set up his operations in Thailand. Sumardi is fluent in several Asian languages, none of which George speaks. On arrival, George is struck by the workers sitting around and the virtually empty shelves in the warehouse. George comments, Why am I paying these men to sit around and do nothing. Sumardi replies, I am sorry, Mr. Williams, but I did not have enough resources to get the parts moved from the docks. George is puzzled by his response and asks him to explain. The parts are at the dock, said Sumardi. He continues, It is partly owned by the government and a private company, Sati Shipping. OK, then lets talk to Sati and get my parts, replies George. George and Sumardi go to Sati Shipping at the dock. Sumardi speaks to a man who is supervising the dockworkers. He then finishes and turns to George. Mr. Chen says that they are very busy today and that they cannot get to your shipment unless you can pay him $300. I did not have the resources to pay him before. George replies, Tell him that I already paid his company $10,000 to ship and deliver my parts! Sumardi speaks to Mr. Chen and turns back to George. Im sorry, but the parts cannot be moved today. While Sumardi speaks, George is considering his options. He has never failed before, and he is not planning to do so now. He wonders what General Motors would think because it has a policy of not paying bribes to foreign officials in compliance with the Foreign Corrupt Practices Act. Moreover, he takes pride in being a successful and principled businessman. What advice would you give George Williams? How did you decide on this advice? How will you know if the advice is correct?
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