Moore Electronics Sells Automated Lighting For Air
Directionsmoore Electronics Sells Automated Lighting For Airport Runwa
Directions Moore Electronics sells automated lighting for airport runways. The government of an eastern European country has offered Moore a contract to provide equipment for the 15 major airports in the country. The official in charge of awarding the contract demands a 5 percent kickback, which he instructed Moore to incorporate into the contract price so it would be at no cost to Moore. Without including this kickback, Moore would lose the contract. Such kickbacks are considered a normal way of doing business in this country. Questions: 1. What should Moore do? 2. Does the AMA Code of Ethics address this issue? Go to and review the code. Then write a brief paragraph on what the AMA Code of Ethics contains that relates to Moore’s dilemma.
Paper For Above instruction
The ethical dilemma faced by Moore Electronics involves navigating the demands of a foreign government's corrupt business practices. The official in charge of awarding the contract is requesting a 5 percent kickback, a common bribery tactic in the country's business environment, yet one that conflicts with ethical standards and legal norms in many parts of the world, including the United States. Moore Electronics must carefully consider what actions align with both legal statutes and ethical standards, particularly those outlined by professional organizations such as the American Medical Association (AMA).
Although the AMA primarily governs medical professionals rather than corporate or engineering firms, its Code of Ethics emphasizes principles such as integrity, honesty, and social responsibility that are universally relevant. According to the AMA Code of Ethics, physicians are instructed to avoid participating in dishonest practices or conduct that could harm public trust or violate legal standards (AMA, 2020). The core principles of the code promote honesty, fairness, and resistance to corruption, encouraging professionals to uphold integrity even when faced with external pressures or cultural norms that differ from their own.
The specific principles in the AMA Code that relate to Moore's situation include the principle of "Professional Responsibility," which urges adherence to ethical standards regardless of external factors like local customs. It also emphasizes the importance of honesty and integrity in professional dealings. Moreover, the code highlights the importance of making decisions that do not compromise public trust or violate legal statutes. Engaging in a kickback arrangement, even if considered normal locally, would likely breach these principles because it could involve illegal activity, conflict of interest, and corruption.
In practical terms, Moore should refuse to participate in offering or including a kickback in the contract as this would perpetuate corrupt practices and potentially involve violations of anti-bribery laws such as the Foreign Corrupt Practices Act (FCPA). Upholding ethical standards means rejecting corrupt practices, even if that risks losing the contract, because engaging in such actions undermines the integrity of the company's operations and the broader international business environment. Alternatively, Moore could explore transparent negotiations or seek legal advice on how to proceed ethically, possibly considering reporting the demand to appropriate authorities or international bodies combating corruption.
In conclusion, Moore Electronics faces an ethical dilemma that tests the company's commitment to integrity and lawful conduct. Guided by principles similar to those in the AMA Code of Ethics, which advocate for honesty, integrity, and social responsibility, the company should resist engaging in corrupt practices like accepting kickbacks. Maintaining ethical standards not only aligns with legal requirements but also fosters trust and reputation in the international marketplace, ultimately supporting sustainable and responsible business growth.
References
American Medical Association. (2020). AMA Code of Medical Ethics. https://www.ama-assn.org/delivering-care/ethics
Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, 78dd-2, 78dd-3 (1977).
Transparency International. (2021). Corruption Perceptions Index. https://www.transparency.org/en/cpi/2021
World Bank. (2020). Combating Corruption in International Business. https://www.worldbank.org/en/topic/governance/overview
United Nations. (2003). Convention against Corruption. https://www.un.org/en/ga/search/view_doc.asp?symbol=A/58/422
Holmes, L. (2017). Ethical decision-making in international business. Journal of Business Ethics, 146(3), 535-543.
Patrick, J. (2019). Corporate responsibility and anti-bribery laws. Business and Society Review, 124(2), 231-249.
Gunningham, N., & Rees, J. (1997). Industry self-regulation: An institutional alternative to command and control. Law & Policy, 19(4), 399-414.
Ethics & Compliance Initiative. (2022). Navigating Ethical Dilemmas in Business. https://www.ethics.org/resources-resource-center
OECD. (2019). Anti-Bribery Convention and Enforcement. https://www.oecd.org/corruption/anti-bribery-convention/