Closing Case: Nicolo Pignatelli and Gulf Italia

1014 WordsMar 28, 20125 Pages
Darren Fryer February 1, 2012 BA 370 Closing Case: Nicolo Pignatelli and Gulf Italia What should Pignatelli do? What would you do and why? In this situation, Pignatelli should go with his second option: asking his more influential partners to pressure government officials to quickly grant the two needed permissions. If his partners are unsuccessful then he should play it straight and try to gain government authorization. This is his best option because it is much less threatening to his company and personal reputation than committing bribes would be. Even though playing it straight would likely take several months and possibly years before the government authorizations could be obtained, it is still the best, and most ethical, option…show more content…
So if the Italian society demands an environmentally friendly refinery, it is in Pignatelli’s best interest that he build one, which deems it necessary for Gulf to spend the extra money, taken from the shareholders, to put towards building a refinery that satisfies the demands and values of the Italian people. The social responsibility perspective argues that society grants existence to firms. Under this perspective it is best for managers to provide a return of capital to shareholders while also meeting the demands of society in order to be socially responsibly and continue to exist within a society. How would you feel if you were a lower-level employee in the company and learned that Pignatelli intended to pay bribes to get things “debottlenecked” ? What would your ethical obligations be? Should you ignore the situation or confront Pignatelli? Should you inform your direct boss or go to the media? If I were a lower-level employee in the company and learned that Pignatelli intended to pay bribes to get things “debottlenecked” in the company, I would feel indifferent about the situation since I know it is an illegal and unethical thing to do, yet it is being done in order to save the refinery from shutting down and losing millions of dollars so it is providing me a higher chance of keeping my job. Even though I know it is extremely unethical for Pignatelli to do this, I would not confront him or go to the media because I did not have a direct

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