Page 144 - Introduction to Business

P. 144

118 PART 1 The Nature of Contemporary Business

Augusta, Georgia (home of the famed Masters Golf Tournament) does not admit
female members. Is it unethical for the CEOs of companies like Coca-Cola Com-
pany, Adolph Coors Company, and IBM to continue to be members of this golf
club? 37 Is it unethical for a company incorporated in the state of Connecticut to
change its place of incorporation to Bermuda or the Cayman Islands? Such a rein-
corporation, at least under current laws, is clearly legal, but being legal does not per
se make it ethical or morally acceptable.
While some arguably unethical behavior by employees within a business organ-
ization is clearly harmful to that organization, other kinds of employee unethical
behavior may be helpful to the company. For example, what if an employee lies to
a government regulator calling for a certain report and tells the regulator that his or
her boss is out sick with the flu, in order to buy a few more days to get the report
done without any repercussions? Such an arguably unethical action is very helpful
to the company and likely emanates from the fact that the employee has been
treated well and feels a degree of loyalty to his or her boss or the company.
Finally, what is viewed as unethical behavior in one country, culture, or society
may not be viewed the same way in another country or culture. In some countries
like Haiti, Nigeria, Uganda, and Bolivia, bribery and corruption are both pervasive
and very much accepted. In some of these countries, there are even published lists
of the amount of bribes government and other officials need to be paid in order to
influence their business decisions!
Foreign Corrupt Practices Act The In 1977, however, the U.S. Congress enacted the Foreign Corrupt Practices Act
federal law prohibiting U.S. companies to regulate conduct in this regard by U.S. businesses engaged in commerce over-
doing business overseas from making seas. Under this law, payments by U.S. businesses to foreign officials to influence a
payments to foreign officials to
influence their discretionary decisions discretionary decision such as the purchase of services or goods by a foreign gov-
ernment agency are now illegal under U.S. law. Corporations found violating this
law are subject to multimillion dollar fines, and guilty individual agents can be sent
to jail for up to five years or subjected to a large fine. Enforcement of this law, how-
ever, is difficult, and many companies argue it unfairly handicaps their ability to do
business abroad.

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