John Cannon graduated from a prestigious West coast university where he majored in international business and had been a very successful biotechnology market analyst early in his career. He then joined and became a manger for (IML) International Medical Laboratories, a large biomedical equipment company managing the German subsidiary. IML specializes in expensive, high quality heart and lung machines that are used during open heart surgery. John’s job title was that of a manager and he was to be in charge of marketing their line internationally, he targeted Europe.
John is visiting Salzburg, Austria for a meeting with Dr. Hans Rombach in hopes to try and sell their machine to the prominent doctor, who is a famous cardiovascular surgeon. John is trying to get the doctor on board to purchase the IML medical machines. During this visit, Dr. Rombach tells John that he is indeed interested in the machine but that a contribution of $25,000 to his research fund would help make his decision easier. John is now in a predicament and not sure what to do. Is the doctor asking for a bribe or is the doctor just simply asking for a donation towards his research?
International Medical Laboratories was very specific about their loyalty to the “Foreign Corrupt Practices Act” that Congress had just passed after a scandal in Japan. IML, which provides lifesaving medical equipment, meant that the company should represent themselves as a leader and be trust worthy. Any unethical behavior, like a bribe would look bad to the public. In fact the company included in their corporate mission the statement “The Company does not engage in any sort of activity which me be construed as unethical.” Problem Statement
There are a few signs that point out that a problem exists. The first sign being that Klaus who has worked for IML has been trying to get Dr. Rombach to buy this machine for a long time now and hasn’t been able to....