Posted: February 1st, 2017

Describe ethical issues raised in this case?

Consider a situation where “David” works for a US based firm in another Country “XYZ”. The government in Country XYZ assesses taxes at an exorbitant rate as the firms are expected to report only 70% of their actual earnings. If a firm reported its actual earnings, the taxes would force it out of business. David’s firm is considering whether it should adopt the local practice of dishonestly reporting its profits to Country XYZ, even though it would be illegal to do this in the United States. Whatever the decision, the firm will continue to report its profits honestly to the US government.

Describe ethical issues raised in this case? Be sure to address cross-cultural nature of the issues. (Write 1 paragraph)

Using the ethical approaches found in the text for cross-cultural ethics, do you think there are any creative middle way solutions? If so, discuss one of them. Identify the positive and negative consequences that would result from this solution. (Write 1 paragraph)

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