Lockneed
Formilleza, Precious L.
Mgt 205
December 11, 2013
LOCKHEED IN JAPAN
I. STATEMENT OF THE PROBLEM:
1. Were the actions and transactions (bribery) made by Lockheed Corporation ethical and legal?
II. HYPOTHESIS:
The hypothesis in this case was that if the Lockheed Corporation was conducting bribery in their transactions, then it’s unethical and illegal.
III. ANALYSIS:
There are many factors and areas to be considered if Carl Kotchian’s actions for the corporation were ethical and legal. It looks like bribes were big part of Japanese business in the 1970's. By accepting the deal, Kotchian provided jobs for thousands of employees for the Lockheed Company. The deal also took care of the Lockheed shareholders, and their families. For Kotchian, conducting business globally in the 1970's sometimes meant paying bribes to guarantee the deal. Although bribery was not an accepted practice in the 1970's within the United States, bribery was an important factor in the global marketplace. Paying out bribes sometimes meant the difference between landing a deal and watching your competitor get the deal. Carl Kotchian followed the rules of a functioning system that was in place when it came time to do business on a global scale. At the time of his deal, no laws were in place prohibiting any forms of bribery then legally speaking, no laws were broken to create this deal.
Another decision needed to be made was to take part in paying the bribes to the Japanese politician was not illegal; bribes were an important factor in many Lockheed international business deals during the 1970's. The economic impact for Lockheed was huge. At the time of this deal Lockheed needed contracts; the company was headed towards bankruptcy; only avoiding bankruptcy by getting a loan worth 250 million dollars from the U.S. government. If Lockheed was able to land the deal with the Japanese, revenues of $400 million would be seen. With these types of revenues, the entire company of Lockheed would
Mgt 205
December 11, 2013
LOCKHEED IN JAPAN
I. STATEMENT OF THE PROBLEM:
1. Were the actions and transactions (bribery) made by Lockheed Corporation ethical and legal?
II. HYPOTHESIS:
The hypothesis in this case was that if the Lockheed Corporation was conducting bribery in their transactions, then it’s unethical and illegal.
III. ANALYSIS:
There are many factors and areas to be considered if Carl Kotchian’s actions for the corporation were ethical and legal. It looks like bribes were big part of Japanese business in the 1970's. By accepting the deal, Kotchian provided jobs for thousands of employees for the Lockheed Company. The deal also took care of the Lockheed shareholders, and their families. For Kotchian, conducting business globally in the 1970's sometimes meant paying bribes to guarantee the deal. Although bribery was not an accepted practice in the 1970's within the United States, bribery was an important factor in the global marketplace. Paying out bribes sometimes meant the difference between landing a deal and watching your competitor get the deal. Carl Kotchian followed the rules of a functioning system that was in place when it came time to do business on a global scale. At the time of his deal, no laws were in place prohibiting any forms of bribery then legally speaking, no laws were broken to create this deal.
Another decision needed to be made was to take part in paying the bribes to the Japanese politician was not illegal; bribes were an important factor in many Lockheed international business deals during the 1970's. The economic impact for Lockheed was huge. At the time of this deal Lockheed needed contracts; the company was headed towards bankruptcy; only avoiding bankruptcy by getting a loan worth 250 million dollars from the U.S. government. If Lockheed was able to land the deal with the Japanese, revenues of $400 million would be seen. With these types of revenues, the entire company of Lockheed would