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The Lockheed Case - International Business or Bribery?
ISBN
9783656250883
Uitgever
GRIN Verlag
Druk vanaf
1e
Verschenen
01-01-2012
Taal
Engels
Bladzijden
12 pp.
Bindwijze
ebook Adobe PDF
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The Lockheed Case - International Business or Bribery?

'When in Rome, do as the Romans do' [1] is a saying that exists in many cultures all over the world. Although it is very old - it can be traced all the way back to the days of St. Ambrose in the fourth century - it briefly describes on of the major challenges companies face in today's globalized economy. Should they follow a universal code of business behavior or adapt to the customs in a particular country. A classic case for this question is the Lockheed Case. In the early 1970s Lockheed had serious economic problems. Facing bankruptcy it secured a government loan of $250 million in 1970. In 1972 and 1973, briberies of the Japanese government were revealed. It turned out that the President of Lockheed, A. Carl Kotchian, authorized secret payments of $12 million to representatives of the Japanese Prime Minister, Kukeo Tanaka, to secure sales contracts in the Japanese aircraft market. As a result, both Prime Minister Tanaka and CEO Kotchian had to resign. Lockheed's contracts in Japan were cancelled. A consequence of these incidents is the Foreign Corrupt Practices Act of 1997 that prohibits American corporations making payments to foreign governments to advance their business interests. In this paper, I will discuss certain topics related to this case and show, why Kotchian did not exhibit ethical behavior in his role as President of Lockheed.
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