The U.S. -based Megahotel Company has been very successful in establishing operations throughout the country In recent years, Megahotels has also successfully established hotels in most major European business capitals The company has decided to establish itself as a worldwide entity. This decision is based primarily on top management's belief that to effectively compete on an international scale, the company must provide its services to business travelers around the globe. In this way, U.S or European travelers can stay in the company's hotels anywhere they travel. Top management sees this expansion as critical in preventing business travelers from using the competition. As the vice president of marketing recently noted, "We cannot risk forcing our guests to use competing hotels too often. After a few stays, these guests might decide to switch hotels permanently, simply because they can stay with the same property everywhere they travel" To reach its new goal, Megahotels is now negotiating with the government of a developing country to place a property in the business district of that country's capital A foreign-based hotel company is negotiating for the same location. After several weeks of fruitless negotiations in which Megahotels seemed to move further and further from its goal while the competitor seemed to get closer to signing a contract, a mid-level government official visited the offices of Megahotels' director of international operations. The official's conversation was brief "The government of my country is considering signing a contract with Megahotels to allow building your hotel. However, your competition now has the inside track on that site I believe that within days your competitor will have a signed deal. The reason for this is that your competitor has provided our government with certain 'gifts' which will enable cabinet ministers and others to realize personal profit in addition, your competitor has promised to provide complimentary hotel rooms for our cabinet ministers in your country if you could match those gifts, I am certain the government will decide to give vou the permission you seek" After this meeting, the director of international operations called the key management team together and relayed what had just taken place. The problem seemed obvious-either pay a bribe to the government or lose the contract. 1. What makes you think that this may be a very realistic scenario? 2 Is it ethical to provide what the local government representative asked for? 3. Is it unethical to provide rooms for the government officials? Discussion Questions 4. What action would you take and how would you justify this action