STARNES- BRENNER MACHINE TOOL COMPANY
My presentation is based on a case that I read in my International marketing class that I thought I needed to share with you. Starnes Brenner machine tool is company making machine tool based in Iowa. They have been dealing with many different countries but I’m more interested today in their business in the Latino country. This doc present of a company business ethic while operating in a foreign country. The main point of the ethic problem is the high level bribery in those countries. My personal question was do we do business with a country that where corruption is so high? Or do we stop dealing with them? Fact:
Frank a foreign representative said that the only way the company could do business smoothly in those countries is to bribe the foreigners you working with. He gave us the example of the loading truck. When the machine arrived and where supposed to be load into the local truck, the truck co. was so slow loading it that he has to step up and bribe their chief so the job could go faster. And also during inspection, the inspector found so many default that Frank couldn’t see but didn’t want to give him enough time to fix. He wanted to shut all the operation down. Frank experience told him the guy wanted to be bribe. As soon has he paid him, everything was said to be correct and the operation went smoothly. Frank justification for doing so was everybody was doing it. You either do it or leave because you will lose so much that you won’t want to keep doing business in the country. Conclusion for us:
The foreign corrupt practice act in the US forbid US Company to use corruption has a way to enter foreign market but sometimes in front of dilemma such has this one company find ways to turn around this rule in order to keep making a profit.
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