Ethical Considerations: Ghana Investment Fund Case Study Analysis

This case study analyzes the ethical and business challenges faced by Richard Dawson, CEO of RenY Corporation, while establishing the Ghana Investment Fund (GIF). The assignment delves into the ethical implications of operating in an environment with weak regulations, focusing on issues like corruption, bribery, and the application of the Ghana Criminal Offences Act (GCOA) and POBO regulations. It examines stakeholder interests, the impact of corruption on financial outcomes and reputation, and strategies for mitigating corruption through competitive business practices and whistleblowing. The analysis explores the complexities of navigating the business environment in Ghana and seeks advice on the best approach to ethical business practices.

Running head: GHANA INVESTMENT FUND CASE STUDY
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Ghana Investment Fund Case Study
Student’s Name
University

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Ghana Investment Fund Case Study
Introduction
The case study poses ethical social responsibility issues for foreign businesses and the
challenge of fairly competing in an environment that lacks clear rules and regulations for
defining the business environment. This means that those who can manipulate the system get an
upper of the business deals while those who are ethically responsible suffer the consequences of
following the rule of law. This case study presents the challenge of ethical social responsibility in
avoiding corruption by acting based on international standards while at the same time competing
with local illegal business means for gaining access to government contracts. This case study
presents the ethical social responsibility issues that are faced by international businesses
operating in Ghana to justify whether it is ethically responsible for these businesses to breach the
rule of law so that they can be able to get an advantage in the government contracts just like what
other businesses are doing.
Question one A
Dawson is not subject to any POBO requirements while operating outside Hong Kong or
in Ghana which gives him an advantage on how to do business. Based on POBO, companies are
not liable to any bribery allegations or acts that are done outside Hong Kong but the liability is
limited to the rule of law of the foreign country that the person is operating in. In this case, it
means that Dawson is not legally restricted to engage in corrupt practices so long as he is not
found guilty by the Ghanaian law. According to Schaefer (2016), POBO is only concerned with
the transfer of money to the local subsidiary and not how the money is spent. This means that the
business processes that take place in the local country are not controlled by POBO since once the

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money has been transferred the local laws are supposed to take place. Thus survive the turbulent
business environment in Ghana, he may be forced to grease the hands of some public officials as
indicated by his team in Ghana to get an upper hand on the contracts and have the best
opportunities when it comes to competing. This implies that he will be forced to play by the rules
to survive the turbulent business environment in Ghana which is quite different from Hong
Kong.
Question one B
Any payments that Dawson makes to the Ghanaian officials as a way of bribing them to
get favors are not I violation of the POBO regulations. This is because POBO only holds
individuals liable typo corruption and bribery allegations if they are operating within Hong
Kong. This implies that the regulation has no control over the nature of the business operations
that take place in foreign countries. This is because each of these countries is supposed to have
its regulations to curb corruption. In this case, it means that Dawson is safe and is not liable to
POBO regulations on the conduct of his business within the country.
Question one C
Dawson is liable to the provisions of Chapter 5 of the Ghana Criminal Offences Act
(GCOA) in any business deals in Ghana. Based on the requirements of the GCOA corruption is
illegal and the law discourages any form of corruption whether passive or active, extortion,
wilful manipulation or use of public office for private gain (RefWorld, 2013). This means that
any form of corruption is illegal and the law deals with both the principal and the agent when
prosecuting these cases. Despite the existence of GCOA, there is a leeway for corruption on
foreign nationals or corporations since the definition of corruption by GCOA fails to include

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private and corporate bribery. In this case, it means that on one end Dawson is safe and may not
be crucified by GCOA while on the other side, the public officials that he brines are legally
bound by GCOA meaning that the same law will affect him which implies that the provisions of
GAAC subject Dawson to the rule of law by preventing the avenues through which he may use
to get an advantage.
Question one D
The burden of corruption, in this case, is not directly on Dawson but rather on the public
official that will receive the bribe. GAAC defines bribery partly as the use of public resources for
personal gain. This means that by bribing the government officials, Dawson will liable to the
provisions of the law which hold both the principal and the agent legally responsible for
corruption (Dimant & Tosato, 2017; Vipin & Sharma, 2011). Even though corporations have not
been included in the provisions of the law, I still think that Dawson will be affected in one way
or the other by the law which holds the public officials responsible. This implies that since RenY
corporation has been registered in Ghana then the legal regulations on corruption are applicable
and can be used to hold its officials and the public officers responsible for corruption.
Question two
Stakeholders are defined as key beneficiaries of any business process who have an
interest in the process that is going on. The stakeholders normally exist at primary and secondary
levels depending on the nature of the business operation that exists and the impact that they have
(Doddamadanayak, Krishnamurthy, & Prabhakaran, 2011). Primary stakeholders are those who
engage in economic transactions with the business like an employee, the owner and even the
government agencies that are charged with the responsibility of awarding the contracts. The

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secondary stakeholders are those who are affected by the business actions, this will include the
consumer and the GAAC. This means that any action taken on the business process can affect
the people who are linked to it. In most cases, stakeholders exist within the internal and the
external business environment that the organization exists, have a stake in the business process
or an influence which can determine the direction of any business outcome.
RenY Corporation as a primary stakeholder is engaged in the business dealing and is
charged with the responsibility of obeying the rule of law and carrying out its business
operations based on the requirements of the Ghanaian laws. Any non-compliance can lead to
legal implications which can lead to the revoking of the business license or even training the
image of the company.
Government officials charged with the responsibility of awarding the contracts are
supposed to work transparently and respect the rule of law as set out by the country’s
government procurement rules are part of the primary stakeholder group. Any deviations from
the law will create an advantage to some parties and disadvantage others.
Consumers are beneficiaries of the project and the business activities that are taking
place. They can be end-users of the products or they can be direct beneficiaries depending on the
nature of the business. In a business environment, corruption is a cost that is passed down to the
consumer to compensate for the bribes that have been paid (Budak & Vizek, 2014). This implies
that the cost of the final product will have to be escalated to meet the cost of the product and the
amount spend in facilitating bribes. The outcome is thus an inflated cost of the final product at
the expense of the consumer.

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Lastly, GAAC and other government agencies charged with the administration of the rule
of law are secondary stakeholders who are non-partisan to the business process. Their role is to
set the legal business framework of operation that defines how business is done. This means that
they are supposed to establish legal mechanisms and put checks and balances in place to
determine whether the law is being implemented as required or not.
Question three
One impact of corruption that Dawson will face is a financial loss due to the excess
money that will be spent in bribes. Since corruption money is never accounted for, the giving
entity suffers the damage since there is no guarantee on whether the business will receive the
intended tender or not. The diversion of organizational resources from the intended business
benefits can also lead to the inability of the organization to operate normally. Further, there is no
guarantee that the price at which the tender will be awarded will include the business benefits
associated with the bribe (Aron, 2019). This means that Dawson is at greater financial risk
should the deal not go through. This will also damage the reputation of Dawson and his
corporation that is new in Ghana. The implications of such outcomes will be seen in reduced
goodwill and the reputation of the organization. The organization can also suffer legal
consequences like being revoked its business license and thus inability to operate in Ghana.
In corruption, the resources used to bribe the officials are passed down to the consumer
who pays the price for the stake that has been used in corruption. Dimant & Tosato (2018) argues
that corruption has a fierce impact on economic and societal development since the resources are
channeled to other aveues thus failing to lead to the required benefits. Since the cost of bribing is
expensive, then it means that the cost of corruption has to be facilitated through the business

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arrangement that exists between Dawson’s company and the Ghanaian business environment.
The transfer of the costs of bribery from the business to the consumer is a common business
arrangement that takes place.
Question four
Corruption is difficult to mitigate since it creates a disadvantage ground for fair
competition. This means that one way that Dawson can use it to align RenY Corporation as
offering the best business packages that will make it qualify for the tender. This is based on
writing an award-winning proposal that will create a reputation for the company. In the tendering
business environment, the best way to win the business contract is by blowing the business
trumpet. This means that RenY needs to sell its services by informing the public sector and
demonstrating the experience that the company has in different countries and how it seeks to
change the business environment and benefit the Ghanaian population. This will lead to positive
reviews for Dawson’s business which will lead to competitive advantage. This leads to a new
advantage that allows the business to outperform its competitors within the business environment
that it operates (Alexander & Martin, 2013). This can also be attributed to a differentiation
strategy that makes the organization appealing to the rest of the businesses.
Another way that Dawson can use to compete in the business environment is by blowing
the whistle and ensuring that Dawson can report the corruption issues within the business.
Through whistleblowing, the business processes of corruption and bribery can be exposed to
GAAC so that the relevant authorities that are relevant to the business can be used to control the
business dealings. In this case, it means that Dawson has to blow the whistle in order to assist
other businesses. According to Lipman (2012) bringing information or allegations to the surface

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internally or externally brings the allegations to light and thus creates a business environment
that is competitive and obeys the rule of law.
Question five
The first source that Dawson can receive advice is GCOA which is the government body
charged with fighting corruption in the country. The fact that he is aware of the business
processes in the country and how brines are used to win tenders (RefWorld, 2013). He can raise
the issue to this government body so that it can investigate the issue and propose the best
solution that Dawson can take.
Another source where Dawson can receive advice prior to making a decision on the best
way to approach the issue is seeking advice from the ministry of trade and industry on the best
way to approach the business issues within the country (RefWorld, 2013). In this case, it means
that Dawson will have to inquire from other business sources on the best way to approach the
issue and how he can win government tenders based on the profile of his company.
Lastly, he can use referral links and business connections to establish grounds within
Ghana and even overcome barriers to entry. This is a method of marketing and promoting
products or services to new customers through referrals and ensuring that the business develops
the best business reception (Jin & Huang, 2014). This will allow Dawson to get relevant
information on how to approach the business issues within the business environment.
In business decision making, there are six steps that are involved to gather information
on the best decisions that the business needs to be taken. Shahsavarani & Abadi (2015) suggest
that the steps give a conscious process that leads the individual to choose an action from several
alternatives that reflects the best outcome. The first step is to identify the decision issues that

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exist in the organization and the need to make the decisions. This is the issue that exists and how
it needs to be addressed.
The second step is the gathering of information from different sources that are needed to
make decisions. This means that one has to understand the relevant sources of information that
exist and what each of these sources says (Vasilescu, 2011). This can be through government
websites, reports, business periodicals and websites that have information on business processes
in the country.
The third step is to identify alternatives from the information that has been gathered.
From the sources of information that have been used, it is important to review different sources
of information to determine the alternative suggestions that they have.
The fourth step is to weigh the evidence that has been gathered from each of these
sources that have been gathered. In this case, it means that each of the alternative decisions that
have been gathered in the above step needs to explore to determine the best way for dealing with
the issue (Ahmed, 2014).
The fifth step is to choose the best alternative that reflects business needs. In this case, the
alternative chosen is the one that reflects the best outcomes for the individual. Through exploring
the outcome of each decision, the choice that reflects the best outcomes is the one that is chosen.
The last step is taking action and reviewing the consequences of the decision. Once an
action has been taken, it is important to review the outcome of the decision to determine whether
it reflects the intended outcomes or not.

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