Essay About Case Of The Lockheed Martin Manager And Important Contract

Globalization Case
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compromised.
A recent study found that individuals are more likely to say that their firm is
involved in bribery when they perceive financial constraints and an intensely competitive
business environment.61 In such environments, it is even more important for the
organization to recognize the ethical dilemmas employees are likely to face, openly
acknowledge that lost business is a possibility if the employee rejects bribery
requests, and reward employees for conducting business within ethical guidelines (or
at least not punish them for doing so). Such a message was sent loudly and clearly in
the case of the Lockheed Martin manager who received the first annual Chairmans
Award for exemplary integrity. As you will recall from Chapter 6, a manager who
received an inappropriate request for payment from a foreign official not only
rejected the request, but removed Lockheed Martin from the bidding process (walking
away from an important contract), reported the problem to senior officials, and
worked with both U.S. government officials and the foreign government to have the
foreign official removed from the decision-making process. Instead of being punished
for potentially losing an important contract, this manager was rewarded publicly
by the chairman of the board.
By talking about aligning global codes and reward systems, we are essentially
recommending that companies develop a global ethical culture that will guide
employee behavior. They should first establish their core values and then takeDescribe at least three ethical issues resulting from globalization.