Published on March 16, 2014
S Wilson Chemicals Ltd.
I. Overview S Introduction S British manufacturer of chemicals: fertilizers S Three reasons for its success: 1. Fertilizer as the primary product in an agricultural based economy 2. The company employed many natives in top positions 3. Appointed a native Ghanaian graduated from Oxford, Joseph Okono, as the president of Wilson Chemical (Ghana) Ltd.
I. Overview S Dates S 1962: subsidiary based in Ghana S 1972: Mr Joseph Okono as subsidiary president in Ghana S 1981: Mr Flight Rawlings launched a successful coup d’états against Ghanaian government S 1984: the auditing revealed “ disquieting discrepancies “ in accounting practices
II. Documents S Dialogue: meeting at London head office S Georges Teele, Vice-president, International division, Wilson Chemicals S Gerald Howard, President, Wilson Chemicals S Ian Thomas, Director, West African Division, Wilson Chemicals
II. Documents S Exhibit 1: cover letter from Sylvia Appleby from the auditing firm to Ian Thomas S Exhibit 2: Letter from Mr. Okono to Mr. Howard S Exhibit 4: brief summary of an article published in the Economist Intelligence Unit about the Rawlings government crackdown on public corporation
II. Documents S Exhibit 3: graph of the gross sales
III. Existing situation S Knows facts S Mr. Okono admitted his error S Elimination of the corruption in Ghana S Consequences of this particularly bribe
III. Existing situation S Communication S Weakness: the head office is not informed about the bribe S Intercultural S Strength: bribery is a widely used practice in Ghana S Ethics S Strength: native Ghanaians as employees S Management S Strength: Mr. Okono is a good element in Ghana
IV. Statement of problems S The new Ghanaian government is doing a real crackdown against corruption in the country S The company cannot be certified as financially clean
V. Options S #1 To keep Mr. Okono and not to act: + - No need to hire someone else The company is outlaw
V. Options S #2 To fire Mr. Okono and not to inform the government: + - The company is protected The government cannot punish The company needs to hire someone else as good as him
V. Options S #3 To keep Mr. Okono and to refer to the government + - The company keeps a good element The company respects the law by denouncing its bribery The company will be punished The government will keep an eye on the company
V. Options S #4 To fire Mr. Okono and leave the country: + - No image problem No conflict with the government Loose of the market
V. Options S #5 To keep Mr. Okono and to pass a law making bribery legal: + - Continuation of the activities No need to hire someone else Problems with the government
VI. Discussions S Do you think these corrupt practices are essential in certain countries to facilitate business ? S Do you think companies should not set an example by stopping such practices or otherwise do you think they should do business according to the customs of the country? S How can we clean this kind of country where bribery is widespread?
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