Kate is the Chief Legal Officer in a well-respected US company that makes life-saving drugs. She has been asked by the company to look into any unethical activities that could harm the reputation of the company, especially in its overseas operations, which are subject to less direct supervision by the main office than domestic operations. One contract that seems to raise a red flag is the Freeland contract. At first glance, it seems ordinary in almost every respect: A major relief organization has contracted with her company to supply two million inexpensive kits with medicine for delivery into the war-torn regions of Freeland. Like most such contracts with charitable organizations, it is only moderately profitable for her firm. What she finds strange, however, is the payment of an extraordinarily large commission to a distributor from neighboring Savemia to deliver the kits deep into Freeland. Seeking out the executive in her own firm who negotiated the contract, Harry, she has one question in mind: Is this a bribe? "Yes and no," says Harry. According to the Savemian distributor, the backs of the delivery trucks are loaded with the kitsand the glove compartments are stuffed with cash. That way, when the drivers are stopped at roadblocks set up by local militia units operating all across Freeland, they can pay whatever is demanded and continue their journey. The Savemian distributor also states that this practice is "regular business", and that all distributors operating in Freeland engage in this practice. Harry says that the distributor could be telling the truth, or could be pocketing the money for himself, but either way, he is known as the most reliable person to get goods delivered within the unstable environment of Freeland. Harry states that the money had to be described as a "commission" or it would have triggered alarms in the contracts department, and perhaps the deal would have fallen apart, and the medical kits would never have been sold or delivered. Kate feels sure that none of the money has flowed back to Harry, whose only motive is to get the kits delivered. And by this time, the deliveries have already been made. Yet Kate still faces a dilemma. Should she draft a separate report to the board on this highly unorthodox contract possibly causing great harm to Harry, or embarrassment to the relief organization, which is aware of the commission? Or should she keep silent, and be complicit in what may be considered bribery at some level?

Discuss what decision Kate should make with respect to the Freeland contract ( write a conclusion)