Question

An automotive company was looking to expand internationally and selected three possible countries in which to build a factory. All three of the potential counties had government officials who made it clear that for a little extra kickback, they would be willing to make the process much smoother to build a plant. In one country, the government official indicated his brother-in-law had the perfect piece of land to use as well. This company has run into what type of common ethical challenges?

Answer 1

Answer:

The automotive company has run into bribery and corruption, one of the most common ethical challenges businesses faced today as they expand internationally.

Explanation:

As with the given scenario above, this company had three potential countries in which to expand their business of building a factory. These countries asked for an amount of extra kickbacks in exchange for helping the company run their business with ease.

However, in the business world, kickbacks are considered an illegal form of payment (or bribe) that one may gave as a compensation to an individual or organization with a considerable superiority and great influence in exchange for an improper advantageous treatment or service.

Such misappropriation of money violates the state or federal laws, which makes it a form of corruption.

Now, the automotive company from the given scenario had faced a dilemma whether to accept the bribe or not. It's a challenge for them as their decision might positively or negatively affect their business expansion.