lenhage ag assignment

8/18/2019 Lenhage Ag Assignment

1/4

ASSIGNMENT 2

LENHAGE AG:

ETHICAL DILEMMASubmitted To: Naeem HayatRida Sanaullah


2/4

Lenhage Ag: Ethical Dilemma

Executive Summar

This case illustrates an ethical decision-making issue by presenting a realistic scenario that

countless expatriate managers have and will continue to find themselves in, particularly indeveloping countries The !eneral "anager of a #uropean manufacturing company, working in

South $orea at Seoul location, faces an ethical dilemma containing bribery payment to get the

contract which would be beneficial for the company as well as South $orean people as theywould get to use %uality products &ne of the crucial decision maker of a local company asked

!" of #uropean manufacturing company to facilitate him with '( bribe to secure the order )f

the #uropean manager decides to pay the money, he will secure an order that will lift hiscompany to a new level of success for years to come and will benefit the company locally as well

as at international stage too as it would boost up their rank )f he decides not to pay, the order and

all the company has worked for over the last year will be lost and morale of his team would

really fall The expatriate manager must decide whether or not the payment would violate lawsinternationally, locally and in his home country *hat are the real risks+ *ho can help him

answer the many %uestions he has regarding this local practice+ nd these %uestions were really

disturbing him as he had to finalie his decision within three days

Statement !" the #r!$lem

The actual problem in this case is lack of ethics showed by the key decision maker ./hulsoo0ee1 which created this entire dilemma for the !eneral "anager .*einhardt1 of the #uropean

/ompany )t is a long term problem as if the !" facilitates 0ee, he might start blackmailing himfor more money which will put *einhardt career on stake "oreover, this bribe giving thing

might become habitual which will cause in company2s reputation that they always get contractsthrough unethical means

Cau%e% !" the #r!$lem

The cause of this problem is unethicalness shown by /hulsoo 0ee 3 one of the key decision

makers of the company 4ut according to the case, this is not only his unethicalness, but use off

bribe and facilitating gifts were %uite common in South $orea to gain big contracts Their culture

supports such activities which ultimately leads them to corrupted nation in near future

Alternative S!luti!n%

To make decision about this problem, *einhardt should seek help from governing accounting

boards5 seek help of other 0enhage executives who might have undergone through same situation

1 | P a g e


3/4

and same problem before "oreover, to get himself clarified, *einhardt should check proper

documentation on 6/7 act which might drive him with a better solution or at least a way to get

rid of the condition with win-win situation

&'ti!n% evaluati!n

• 7ros ':

- )t might give him a better solution

- He will have governing body on his side

• /ons ':

- )nternal matter would leak out- )t will cost him time n fee

• 7ros 8:

- *ill let the company know about his strong ethics

- *ill have his own people on his side

• /ons 8:- 9ecision may be biased because of professional ealousy

• 7ros ;:

- *ill clarify him rules n regulations under 6/7- )t might produce a win-win situation

• /ons ;:

- This would be time taking

Deci%i!n criteria

) as !" would go for consulting my experienced management but would evaluate the risk factor

first that what would be the impact of this whole scenario and then consult my management sothat ) could briefly explain them the situation

"oreover, this situation is least time taking or costly and would help me in gaining my

managements trust

Rec!mmended %!luti!n:

) will consult my senior manager to avoid bribery and handle this matter ethically as bribery hasnegative implications to growth

External S!urcing

' !iving )n &r !iving


4/4

https:==wwwscuedu=ethics=focus-areas=more=engineering-ethics=engineering-ethics-

cases=giving-in-or-giving-up=

8 To Ship &r Not To Shiphttps:==wwwscuedu=ethics=focus-areas=more=engineering-ethics=engineering-ethics-

cases=to-ship-or-not-to-ship=; /opyright /oncerns


cases=copyright-concerns=

> ?aiding /ustomer ssets at "6 !lobal

https:==wwwscuedu=ethics=focus-areas=business-ethics=resources=raiding-customer-

assets-at-mf-global=

@ "ay The Truth 4e *ith Aou


cases=may-the-truth-be-with-you=

3 | P a g e
https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/giving-in-or-giving-up/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/giving-in-or-giving-up/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/to-ship-or-not-to-ship/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/to-ship-or-not-to-ship/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/copyright-concerns/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/copyright-concerns/https://www.scu.edu/ethics/focus-areas/business-ethics/resources/raiding-customer-assets-at-mf-global/https://www.scu.edu/ethics/focus-areas/business-ethics/resources/raiding-customer-assets-at-mf-global/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/may-the-truth-be-with-you/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/may-the-truth-be-with-you/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/to-ship-or-not-to-ship/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/to-ship-or-not-to-ship/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/copyright-concerns/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/copyright-concerns/https://www.scu.edu/ethics/focus-areas/business-ethics/resources/raiding-customer-assets-at-mf-global/https://www.scu.edu/ethics/focus-areas/business-ethics/resources/raiding-customer-assets-at-mf-global/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/may-the-truth-be-with-you/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/may-the-truth-be-with-you/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/giving-in-or-giving-up/https://www.scu.edu/ethics/focus-areas/more/engineering-ethics/engineering-ethics-cases/giving-in-or-giving-up/

lenhage ag assignment

Documents