Stephen is faced with many ethical implications that are contradictive to his native laws, organizational policy and ethical behaviors. Stephen’s actions of intra-firm transactions between Excalibur and Sword Technology are ethical as long as the strategies to reduce Sword Technology’s taxable income abide transfer pricing regulations. The many issues arise by tax evasion through financial manipulation. Strategies to implement concerning transfer pricing are to …show more content…
Stephen’s knowledge of certain activities are not only unethical, but also affect international laws. Bribery and the Foreign Corrupt Practices Act are strictly prohibited involving civil penalties and criminal charges specifically for a public corporation. Although many of the transactions are not conducted by Stephen personally, he can still be held liable through his officers and agents representing his corporation. The dilemma would ensue legal implications resulting in unsurmountable attorney’s fees and the ultimate loss of his business (Mckinney & Moore,