Question

Consider the following scenario:
To assist the sale of your products in a particular foreign market, you are advised to pay a 10 percent commission to a go-between who has access to high-ranking government officials in that market. You suspect, but do not know, that the go-between will split the commission with the government officials who decide which goods to buy.

Respond to the following:

Does it make a difference if your competitors routinely pay such commissions? Explain why this may or may not have an impact on your decision.

Answer 1

I will prefer not to pay the commission because it is illegal to bribe government officials just to increase the number of products sold, even if they are ready to receive the bribe I will keep myself aloof from payment of commission to the officials. If the competitors routinely pay such commissions even then I will try to remain clean and adhering to the legal norms of doing business because I believe that it is a core capability that the organization possess and there is no way I will be paying a bribe to the government officials because the organization is ethical and do not wish to adopt illegal means for better sales.