wilson chemicals case
TRANSCRIPT
WILSON CHEMICALS LTD
Axel Mouterde – Alexandre Pradon
Exhibits
• Dialogue between George Teele, Gerald Howard and Ian Thomas
• Exhibit 1 : Cover letter from Sylvia Appleby
• Exhibit 2 : Letter from M Okono to M Howard
• Exhibit 3 : Chart showing the gross sales of the company
• Exhibit 4 : Measures taken by the Rawlings Government
Overview
• British company • Established in Ghana since 1962• Produce chemical fertilizers
Hierarchy
G. Howard President
G. Teele V.P International division
I. ThomasDirector West African Division
J. OkonoGhanaian Subsidiary Director
Mr. Flight Lieutena nt RawlingsNew president of Ghana
Situation• High demand for fertilizers in Ghana• Hire more and more local workers• Hire Joseph Okono in 1972– Respected and successful manager– Tripled profits in 10 years
Controversial methods : Bribery
Communication
Good internal communicationOkono has good relation with the
employees
Lack of communication between Okono and the leaders
Intercultural differences
Okono is really trusted in GhanaHe knows both
cultures
The government is unstable
Different point of view on bribery
Ethics
A way to protect jobs
Benefits among the rest
It’s again ethicsHarmful for the
image of the companyIt’s illegal
BRIBERY
Management
Okono knows how to do business in
GhanaAutonomous and
motivated
Okono has a lot of liberty
Not much supervised
Statement of the problem
Despite the excellent results and considering the ethical issue of bribery :
Should we keep working with M. Okono ?
Option 1 : We do nothing
Advantages• Potential lawsuits• Ethical issues• End of the subsidiary
Drawbacks• Keep Okono in place• Maintain sales
Option 2 : Stop Bribery
Advantages• Sales could decrease• Not Okono way of making
business• May not overcome crisis
Drawbacks• Keep Okono in place• Preserve the integrity of
Wilson
Option 3 : We Support him
Advantages• Illegal practice• Bad reputation• More risks of being caught • Difficult with the new
government
Drawbacks• Possible huge increase in
profits• The company keeps making
money
Option 4 : We Fire Okono
Advantages• Loss of a competent
director• Risk of losing (a lot of)
money
Drawbacks• No Bribery anymore• No risks for lawsuits• Protect the reputation of
the company
Option 5 : We Change the organization
Advantages• Loss of competent directors• Loss of benefits• Loss of Ghanaian market
Drawbacks• No more ethical issues