In Cactus Club Cafe , you are the new Chief Financial Officer for a multinational mining company. While reviewing the company's finances for operations in a distant foreign country which is also in a politically troubled region, you noticed a line item labelled "Miscellaneous expenses" that amounts to well over $1,000,000 a year. There is no further information in the financial reports for this line item.

You call the regional director for the firm in that part of the world and ask about the mysterious line item. The director sounds anxious and explains that the money is used to pay off warlords in the region to "ensure security" for the company's employees, operations and property. This is clearly a form of extortion or a protection racket, and while payments have been successful in keeping your company's people and property unharmed in the region, you also realize the money allows the warlords to purchase weapons and ammunition. Your company is therefore directly supporting the violence in the region, and the ongoing murders of innocent civilians. On the other hand, the regional director makes it clear that if the payments to the warlords are cut off, the company's operations and employees in the region are likely to be subjected to the violence from the warlords.
Explain the ethical situation you are facing
Explain what decision you would make about this and why
Please write in a narrative form.

Respuesta :

The ethical situation that is being faced here is the direct sponsoring of terrorism by this company.

It is unethical in any field to sponsor killings or cause pain to people. But in this case, the mining company was initially unaware that this was going on.

They pay the warlords for their safety and the money is spent on weapons and promotion of violence.

In a situation as this and given the extent to which people may be in danger, the best thing to do is to shut this company down for a while till the unrest stops.

If not shut down, probably a relocation would be necessary. But staying in a place where violence is carried out and paying such money is far from ethical.

If they continue to pay this money, it would be assumed that they are in direct support of the activities of the warlords.

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