Raul has difficulties obtaining the location approvals within the required time frame due to unforeseen circumstances. Raul’s boss, Ian, is responsible for making sure Raul gets the contracts approved in time, no matter what the cost is. Ian is displeased with how long the zoning approvals are taking to acquire. Pedro needs a 6000-peso bribe to complete the job and get the zoning permits on time. Raul is reluctant to pay the bribe, and worried people at headquarters might find out; but Ian insists that it is not that big of a deal. As a policy to respect the local culture in which they do business with, Raul pays the bribe to Pedro. The permits were approved and the first store was built in Mexico. People at headquarters have a stake in this dilemma, because they are putting a lot of pressure on Raul to get the permits acquired. Every time D&R Company needs a store built they turn to Raul to get the permits approved in time. He pays Pedro the bribe every time. When the authorities find out and plan to launch an investigation, Raul is told by Ian to destroy any incriminating documentation, and to deny any payments made.
Raul can either pay the bribe every time or wait the required amount of time to get the permits without bribing government officials. Ian can either push Raul to do whatever is necessary to get the permits, and insist he pays the bribe; on the other hand, Ian can relieve some of the pressure and not push Raul into doing something illegal or unethical. Corporate has the option to turn their back and pretend they aren’t doing anything wrong by letting Raul pay the bribes. Alternatively, they can realize that zoning permits take a long time to obtain in Mexico by going through the legal channels, and making sure their employees, Ian and Raul, do the same. Raul can talk to corporate, and explain to them...