Closing Case: Nicolo Pignatelli and Gulf Italia Essay

1017 Words Apr 3rd, 2012 5 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
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Even though he was not the one to physically transfer the bribe money, just having his name linked to the bribery would threaten his very career.
Bribes are illegal in Italy. Even if bribes were common practice there, would this justify paying them? No, just because bribes are common practice in Italy does not mean Pignatelli is justified in paying them. Bribery is still considered illegal and can get him in trouble with the law and threaten his employment. The government fosters unethical behavior, such as bribes, through the Foreign Corrupt Practices act, which monitors everything that Pignatelli does to ensure that he does not commit illegal acts. If Pignatelli complies with the laws set by the government then all should be well with him and his refinery. Does Pignatelli have a responsibility to Italian citizens to build an environmentally friendly refinery above and beyond what the law requires? Is it appropriate for Gulf to spend this extra money and essentially take it away from shareholders? No, Pignatelli does not have a responsibility to Italian citizens to build an environmentally friendly refinery above and beyond what the law requires. According to Alex Smith’s conclusion from nearly 200 years ago: “the best way to advance the well-being of society is to place resources in the hands of individuals and allow market forces to allocate scarce resources to satisfy society’s demands” (pg 37). If Pignatelli does not

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