After some months, when Jacob took over as the sales person in Latin America, he discovered certain facts by going through files of the earlier sales representatives. The Latin American area under Jacob also included some US territory and when Jacob went over the old reports, he noticed that quite a few US companies had stopped purchasing Richardson equipment; there was no apparent explanation for these customers to have moved away from Richardson. After some enquiry with these clients, Jacob discovered that these companies had suffered accidents, almost seven years back, due to a failed liner from Richardson. However, in spite of the companies complaining to the sales rep and the fact that Richardson’s President had also visited, no corrective measures had been taken.
In all the above three cases sited here, the common factor is that Richardson has taken advantage of the less restrictive rules (compared to US) in other places such as Mexico, Brazil, and other Latin American countries, to bribe, and push substandard supplies, which they would not be able to sell inside the US or to other countries, for example in Europe, who would have strict quality regulations. So, these are ethical issues. Though Jacob had not reacted about the bribes, he was morally upset by the loss of lives and decided to talk to his boss, Hillary; she thanked him for the information but advised him to keep quite till the seven year statute, regarding limitations, was over. As recourse Hillary also said that in case this became known, then Richardson would download the inventory on Venezuela or Brazil where laws were less restrictive. Both these again were ethical issues.
Sometime after, Jacob went to finalize a deal in Mexico with ARMCO; the deal was for $50 million and after it was signed Jacob again bribed an ARMCO person with $50 thousand. Hillary congratulated Jacob and promised him a bonus and a probable promotion. Both of these again raise ethical concerns. While all these