Trevino and Nelson: Case Analysis

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The first step under Trevino and Nelson is to gather the facts. In this case, the manager was not aware of or chose to ignore the facts surrounding the Italian tax system. The knowledge that the bank had with respect to the Italian tax system was therefore incomplete. The facts in this case included the mores surrounding the Italian system of tax collection and negotiation. The manager was informed that it would be advisable to declare a low amount of income and was subsequently informed of the need to hire a commercialista to handle the negotiations. The manager failed to heed this advice, in particular because he thought that these practices were unethical. The manager should have gathered the facts with respect to the mores and customs of the Italian tax collection system. The second step under Trevino and Nelson is to define the ethical issues. In this case, the American manager felt that it was dishonest to underreport earnings on the tax form. The manager also identified the payment of bustarella, which was viewed almost as a corrupt practice. These issues were ethical to the American manager, who assumed that because the process was different and less transparent than the American tax system that it lacked ethical integrity. To the Italians, however, neither practice is considered to be unethical, and should not have been an ethical dilemma for the manager. The manager was caught feeling that there was an ethical dilemma because such practices conflicted with his

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