Business Ethics and Law

MANAGEMENT ETHICS & LAW

 (Individual assignment)

Case study 1

• Your company is currently discussing a contract for the construction of solar panels with the Government of Vindalubia. Your company is requested pay a ‘motivation fee’ for the Minister of Energy of Vindalubia in order to facilitate the signature of the contract with the Government of Vindalubia.
• The CEO of the company asks you to look into this issue.
• Do you pay the motivation fee? Why? What are the legal aspects you will take into consideration in order to justify your decision?
• Please draft a document explaining your decision, your arguments and the legal reasons for your decision.

The issue I’m facing is that our company is one of the bidders for the solar panels project in the state of Vindalubia and the minister of energy of Vindalubia requesting a “Motivation” from our company! And our CEO is fine to do so through me! and I’ll brief my argument as follow:

Ethically I will not accept doing this thing because it is clear enough that this is not a motivation as much as it is a bribery.
Legally, by accepting this is criminal action I will be called a “Briber” and according to Saudi law article (10) “The briber and the mediator and any accomplice in any of the offences set forth in this law shall be punished as provided for in the relevant article. Any person who knowingly agrees, incites or assists in committing such offences shall be considered an accomplice if the offence is perpetrated as a result of said agreement, incitement of assistance.” And for more about (Anti-Bribery Law) you can visit the following link:  

Case study 2

• Your company signed a contract for the construction of solar panels with the Government of Vindalubia (fictitious state). Your company paid a ‘motivation fee’ for the Minister of Energy of Vindalubia in order to facilitate signature of the contract with the Government of Vindalubia. A few months later, the Government of Vindalubia terminated the contract.
• The CEO        of the company        is really concerned about this issue. CEO asks you to look into this issue.
• What should the company do?
• What are the methods of resolving the dispute? Why?
• Please draft a document explaining your decision and the reasons why you propose your answer.

First of all, I will contact the government to clarify the reasons behind the termination of the contract and since the relationship here is a contractual relationship therefore, we need to look into the signed contract and review the whole clauses especially those related to terminating the contract and based on those clauses we will claim the company rights accordingly and we will rise our dispute according to the contract. But if the dispute location is out of country I would advise the management to contract with an independent expert in the relevant field who can assist us in resolving our controversies. The opinion of this expert is much less formal and aggressive procedure than court proceedings. The expert’s opinion can cover technical assessment of machinery or processes; testing the quality of a product; investigating the performance or conformity of industrial plants investigating the causes of failure of a deal or the causes of delays and assessing the values of shares etc... also The purpose of expert’s findings, decisions or recommendations varies according to parties requesting them. Alone, they will usually not form a binding, and enforceable decision. However, such findings made to the time of disputed events can be highly persuasive for judges or arbitral tribunals.