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Situation #1: The trade minister of a foreign nation asks you to pay a $200,000 consulting fee. In return for the money, the minister promises special assistance in obtaining a $100 million contract that would produce at least a $5 million profit for your company. If your company does not win the contract, it would probably go to a foreign competitor. What would you do? What course of action would you take: (a) refuse to pay; (b) pay, but consider it unethical; (c) pay, and consider it ethical?



Situation #2: You learn that a competitor has made an important discovery. It will substantially reduce, but not eliminate, your profit for about a year due to the significant improvement in the product. There is a possibility of hiring one of the competitor’s employees who knows the details of the discovery. Would you hire this person this person? Why or why not.



Situation #3: During an audit, you learn that an executive in your company who earns $50,000 a year has been padding his expense account by about $1,500 a year. The executive’s supervisor is aware of the executive’s expense account padding practices. Is this acceptable, considering the supervisor knows about it? Why or why not.

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