Formilleza, Precious L.
December 11, 2013
LOCKHEED IN JAPAN
I. STATEMENT OF THE PROBLEM:
1. Were the actions and transactions (bribery) made by Lockheed Corporation ethical and legal?
The hypothesis in this case was that if the Lockheed Corporation was conducting bribery in their transactions, then it’s unethical and illegal.
There are many factors and areas to be considered if Carl Kotchian’s actions for the corporation were ethical and legal. It looks like bribes were big part of Japanese business in the 1970's. By accepting the deal, Kotchian provided jobs for thousands of employees for the Lockheed Company. The deal also took care of the Lockheed shareholders, and their families. For…show more content… Since Japan's market was the last untapped market in the world.
In this case, Kotchian is face with many challenging moral issues. Kotchian's biggest moral predicament was paying the bribes to the Japanese politicians. But, Carl Kotchian was simply doing business in a market where he did not understand the rules. Kotchian did not offer the bribes to seal the deal; he was told if he wanted the deal he had to pay bribes. Kotchian only followed the rules of the system in which this deal took place. Outside the United States bribery was a common global practice in the 1970s. By paying these bribes, Kotchian secured thousands of jobs, and the financial security of those families, and shareholders. Kotchian played by the rules of a system that functioned on bribes, and did what any good business executive in that time would have done in the global market place.
Kotchian actions were motivated by the act utilitarianism, which states an action is right if and only if it produces the greatest balance of pleasure over pain for everyone. By paying the bribes Kotchian made everyone one involved satisfied. By Japan purchasing airplanes from Lockheed many jobs were created, Lockheed was promised a future, and all involved parties on the Japanese side were content. Kotchian, although not completely comfortable with paying the bribes, paid them to secure the contract. Closing the business deal meant Lockheed's competitors would likely