The Lockheed Case - International Business or Bribery?
Business & Finance, Business Reference, Business Ethics
| Author: | Klaus Schütz | ISBN: | 9783656250883 |
| Publisher: | GRIN Verlag | Publication: | August 2, 2012 |
| Imprint: | GRIN Verlag | Language: | English |
| Author: | Klaus Schütz |
| ISBN: | 9783656250883 |
| Publisher: | GRIN Verlag |
| Publication: | August 2, 2012 |
| Imprint: | GRIN Verlag |
| Language: | English |
Seminar paper from the year 2011 in the subject Business economics - Business Ethics, Corporate Ethics, grade: A, Union Graduate College, course: Managing Ethically in a Global Environment, language: English, abstract: 'When in Rome, do as the Romans do' [1] is a saying that exists in many cultures all over the world. Although it is very old - it can be traced all the way back to the days of St. Ambrose in the fourth century - it briefly describes on of the major challenges companies face in today's globalized economy. Should they follow a universal code of business behavior or adapt to the customs in a particular country. A classic case for this question is the Lockheed Case. In the early 1970s Lockheed had serious economic problems. Facing bankruptcy it secured a government loan of $250 million in 1970. In 1972 and 1973, briberies of the Japanese government were revealed. It turned out that the President of Lockheed, A. Carl Kotchian, authorized secret payments of $12 million to representatives of the Japanese Prime Minister, Kukeo Tanaka, to secure sales contracts in the Japanese aircraft market. As a result, both Prime Minister Tanaka and CEO Kotchian had to resign. Lockheed's contracts in Japan were cancelled. A consequence of these incidents is the Foreign Corrupt Practices Act of 1997 that prohibits American corporations making payments to foreign governments to advance their business interests. In this paper, I will discuss certain topics related to this case and show, why Kotchian did not exhibit ethical behavior in his role as President of Lockheed.
Seminar paper from the year 2011 in the subject Business economics - Business Ethics, Corporate Ethics, grade: A, Union Graduate College, course: Managing Ethically in a Global Environment, language: English, abstract: 'When in Rome, do as the Romans do' [1] is a saying that exists in many cultures all over the world. Although it is very old - it can be traced all the way back to the days of St. Ambrose in the fourth century - it briefly describes on of the major challenges companies face in today's globalized economy. Should they follow a universal code of business behavior or adapt to the customs in a particular country. A classic case for this question is the Lockheed Case. In the early 1970s Lockheed had serious economic problems. Facing bankruptcy it secured a government loan of $250 million in 1970. In 1972 and 1973, briberies of the Japanese government were revealed. It turned out that the President of Lockheed, A. Carl Kotchian, authorized secret payments of $12 million to representatives of the Japanese Prime Minister, Kukeo Tanaka, to secure sales contracts in the Japanese aircraft market. As a result, both Prime Minister Tanaka and CEO Kotchian had to resign. Lockheed's contracts in Japan were cancelled. A consequence of these incidents is the Foreign Corrupt Practices Act of 1997 that prohibits American corporations making payments to foreign governments to advance their business interests. In this paper, I will discuss certain topics related to this case and show, why Kotchian did not exhibit ethical behavior in his role as President of Lockheed.
