Ethical Dilemmas: Winning World Bank Contracts in Kenya

This case study examines the ethical challenges faced by a large American engineering company seeking to win a World Bank-funded road construction contract in Kenya. It addresses issues of corruption, transparency, and gift-giving, particularly in a context where competitors may have different ethical standards. The study explores how the company should navigate potential bribery requests from local officials, how to approach gift-giving, and how to advise senior management on maintaining ethical conduct. It emphasizes the importance of upholding integrity, transparency, and cost leadership to build a reputable company that can win contracts without compromising its values. The case concludes by suggesting strategies for maintaining ethical practices and leveraging market goodwill to succeed in competitive international markets. Desklib provides access to similar case studies and solved assignments for students.

Running head: INTERNATIONAL BUSINESS 1
Ethical Values in International Business
Student’s Name
University Affiliation

INTERNATIONAL BUSINESS 2
How World Bank have been Dealing with Charges of Corruption and Transparency
The World Bank fraternity considers corruption a major setback which contradicts their
goals which are eradicating high level of poverty by the year 2030 and raising standards of living
of people in the developing countries (Abidoye et al., 2015). Through this World Bank has been
dealing with the charges of corruption and transparency in the past through the following
strategies:
The world bank team has been working together at all levels from the local country to
global level to instil accountable and transparent measures in designing and implementing
programs against corruption, for example, building a country’s capacity which delivers as per
their commitments in enhancing fully transparency. Another strategy is where it has been
extending its work for example on tax reforms and procurement reform and most vital preventing
corrupt organizations from winning state tenders. It is, therefore, true to concur that World Bank
has been a spearhead in fighting corruption and upholding transparency through engagement and
actively supporting international and regional anti-corruption movements, for example, the
international corruption hunters alliance (Wouters, Ninio, Doherty & Cisse 2015).
Global Firms Seeking to do Business for World Bank Funded Projects
Many global companies firms seeks to do business for world bank funded projects for
example firms from first world countries which include USA, United Kingdom, France, China
and Japan who are in competition on their uniqueness in offering their services and terms they
give in order to win majorly the developing countries in giving them state contracts.
Need to Develop a Relationship with Ministry of Transportation in Kenya

INTERNATIONAL BUSINESS 3
As the director of global business development of a large American engineering company
wishing to win a contract to build roads in Kenya funded by World Bank project would uniquely
present the image of my company to the ministry of transportation in Kenya while developing a
relationship through the following ways: Would first uphold the virtue of transparency which we
highly value by giving assurance through tabling everything concerning our terms and finance
holding which would help the ministry earn trust on the company.
Through the relationship with the ministry will discuss on the quality of services we offer
in the construction industry for example building of modern and durable roads which have a long
lifespan in order to have faith with the company.
How to Handle a Situation Associated with Bribe to win the Contract
In a situation where my firm has been asked for a bribe directly by a local official in
charge of the decision making, I would firmly stand with the positive value binding the company
for example integrity in ensuring ethical conducts. With this I would give a frank response that
as much I want to win the contract I would not compromise the values we believe in which
include honesty on every move we make and emphasize that winning the contract has to be
purely genuine and not one that will raise questions and corrupt our morals.
Competitors from Less Concerned Countries on Ethics of Gift Giving
In the case on ethics of gift giving where competitors are from all diverse and some of
this competitors come from countries that are less concerned about this, I would firmly stand
with the principles governing this, for example, considering what is the point of the gift. In this
case, it would be trying to lure them into a corrupt relationship and not a sign of thanks (Graycar,
Jancsics, 2017). I would also consider the expectation of gift which would automatically in this

INTERNATIONAL BUSINESS 4
case sound to expect a favor that is winning the contract in return for the gift which I would
purely term as unethical. Lastly would consider the timing of the gift which I would not
recommend during this tendering process (Tsetsura, 2015).
How to Still get a Business
From the above kind of situation in order to still get business, I would firmly stand on ethical
conducts governing gift giving and I would not compromise the process which by doing so is
going against the constitution and law. I would emphasise on this to the ministry of
transportation in Kenya to convince them that, regardless other competitor countries are trying to
lure for the tender through this, in my company and government that would not be a strategy so
as to stand against moral decay and maintaining the image of the company and country.
In doing so this will have an impact on the transport ministry in Kenya which will be
absolutely in the battle of fighting any form of unethical conducts and by doing so still remain in
a position of getting a business.
Advice to Senior Management
I would advise the senior management that no matter the stiff competition we are in with
other competitors in winning the contract bribes will always stand unethical and through
practising it we will deviate from the actual values we uphold in the company. In the long run,
any form of acts that would be against ethical conducts will surely damage the reputation of the
company and ruin the culture of work depicting an inappropriate example to the work team in the
company who would also be lured to adopt unethical conducts in order to achieve what they
focus on.

INTERNATIONAL BUSINESS 5
After emphasizing on the importance of remaining ethical in all our endeavors I would
suggest some of the strategies, for example, continue utilizing market goodwill by remaining
ethical where recommendations will always follow us from past clients. Another strategy is
through being cost leaders in the services we offer that is not exaggerating our costs but most of
it all maintaining quality of the services we offer with the company (Littler, 2015). By doing all
that I firmly believe the company will be a reputable one and stand uniquely among other
competitors and stand a chance of winning the contract without compromising what we believe
and work upon.

INTERNATIONAL BUSINESS 6
References
Abidoye, B., Orazem, P. F., Vodopivec, M., Acemoglu, D., Johnson, S., Robinson, J. A., ... &
Alcázar, L. (2015). Corruption. Washington, DC: World Bank.
Graycar, A., & Jancsics, D. (2017). Gift giving and corruption. International journal of public
administration, 40(12), 1013-1023.
Littler, D. (2015). Cost leadership strategy. Wiley Encyclopedia of Management, 1-1.
Tsetsura, K. (2015). Guanxi, gift-giving, or bribery? Ethical considerations of paid news in
China. Public Relations Journal, 9(2), 2.
Wouters, J., Ninio, A., Doherty, T., & Cisse', H. (Eds.). (2015). The World Bank Legal Review
Volume 6 Improving Delivery in Development: The Role of Voice, Social Contract, and
Accountability. The World Bank.