Alexander Gavin's Dilemma

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CASE NO. 4 – Alexander Gavin’s Dilemma:

Cultural Relativism and Business as Usual

I. Point of View:

Professor Hennessey

II. Statement of the Problem:

The dilemma of Alexander whether to accept the deal or compromise his ethics.

III. Objective/s:
1. Appeal on the proposal and proceed to the regular bidding process. 2. Advocate correct sound business ethics.

IV. Areas of consideration:

1. Alexander Gavin, a Senior Project Manager of El Sahd Construction Company in Kuwait. Mr. Gavin was offered a proposal by the Ajax’s Manager to increase the bid amount to $33 Million of the project in Iran. Of the $3 Million increase, $1 Million will be his share for not disclosing the matter. If Mr. Gavin will not accept the deal, he will experience a physical harm. He was already involved in the pay-offs before, but this time he was put in to a situation where his ethics is on the line. Gavin needs to make a decision that will benefit the company in the long run.

2. El Sahd Construction Company is a prosperous company, with an excellent reputation for producing a timely and cost effective way on major construction project in the Middle East. Two months ago, Mr. Gavin participated the bidding on Iran project. The company put in a bid of $30 Million to Ajax Ltd. to be the principal sub-contractor on a project in Iran.

3. Ajax Ltd is a British based-company. As the company’s business culture, the Ajax’s Manager had a proposal to Mr. Gavin that the bid price will be amounted to $33 Million in order to pursue the project. The increase of $3 Million will be $1 Million for the Ajax’s Managing Director, $1 Million Ajax’s Manager and $1 Million to Mr. Gavin. Ajax’s Manager chose Mr. Gavin is the key in order to close the deal at their requested bid amount. In order to Mr. Gavin will not disclose the matter, he will receive a $1 Million share. Non cooperation of Mr. Gavin may mean physical harm coming to...
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