Sebastian is an experienced Program Director, recently recruited to work for MidCo, a defence contractor in the Kingdom of Sumeria and a subsidiary of EuroCorp, a large European defence company. He is expected to oversee a $3.25 billion military telecommunications modernisation programme being managed for Sumeria by the British government. On taking up the role, he notices a number of anomalies, from the behaviour of his fellow directors, to company processes and relationships with subcontractors. He finally comes to the realization that MidCo has been paying bribes to Sumerian public officials. He believes that he is expected to ‘turn a blind eye’ or at least not ask awkward questions when he signs off on project authorisation. Without his sign-off, the project cannot progress and the whole programme seems doomed to fail. Sebastian feels something should be done. He has the option to quietly leave the country or take action – what should he do?
Case Preparation Questions:
1. Does Sebastian have the situation correctly analyzed?
2. What is the unethical act taking place in the company
3. What would you do, as Sebastian?
Answers
Answer:
Sebastian is an experienced Program Director, recently recruited to work for MidCo, a defence contractor in the Kingdom of Sumeria and a subsidiary of EuroCorp, a large European defence company. He is expected to oversee a $3.25 billion military telecommunications modernisation programme being managed for Sumeria by the British government. On taking up the role, he notices a number of anomalies, from the behaviour of his fellow directors, to company processes and relationships with subcontractors. He finally comes to the realization that MidCo has been paying bribes to Sumerian public officials. He believes that he is expected to ‘turn a blind eye’ or at least not ask awkward questions when he signs off on project authorisation. Without his sign-off, the project cannot progress and the whole programme seems doomed to fail. Sebastian feels something should be done. He has the option to quietly leave the country or take action – what should he do?
Explanation:
2. What is the unethical act taking place in the company