Case Name :      Lenhage AG: Ethical Dilemma

Authors :           Daniel Galindau, Won-Yong Oh

Source :             Ivey Publishing

Case ID :            W14137

Discipline :        Strategy

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The general manager at the Seoul location of a European manufacturing company faces an ethical dilemma involving bribery and “facilitation” payments. A key decision maker in a local construction company’s purchasing department has asked for a “facilitation” payment as a necessary condition for securing an order. If the expatriate manager decides to pay the money, he will secure an order that will lift his company to a new level of success for years to come. If he decides not to pay, the order and all the company has worked for over the last year will be lost. The expatriate manager must decide whether or not the payment would violate laws internationally, locally and in his home country. What are the real risks? Who can help him answer the many questions he has regarding this local practice?