S

Wilson Chemicals Ltd.

I.  Overview

S  Introduction

S  British manufacturer of chemicals: fertilizers

S  Three reasons for its success: 1. Fertilizer as the primary product in an agricultural based economy 2. The company employed many natives in top positions 3. Appointed a native Ghanaian graduated from Oxford, Joseph Okono, as the president of Wilson Chemical (Ghana) Ltd. 

I.  Overview

S  Dates

S  1962: subsidiary based in Ghana

S  1972: Mr Joseph Okono as subsidiary president in Ghana

S  1981: Mr Flight Rawlings launched a successful coup d’états against Ghanaian government

S  1984: the auditing revealed “ disquieting discrepancies “ in accounting practices

II.  Documents

S  Dialogue: meeting at London head office

S  Georges Teele, Vice-president, International division, Wilson Chemicals

S  Gerald Howard, President, Wilson Chemicals

S  Ian Thomas, Director, West African Division, Wilson Chemicals

II.  Documents

S  Exhibit 1: cover letter from Sylvia Appleby from the auditing firm to Ian Thomas

S  Exhibit 2: Letter from Mr. Okono to Mr. Howard

S  Exhibit 4: brief summary of an article published in the Economist Intelligence Unit about the Rawlings government crackdown on public corporation

II.  Documents

S  Exhibit 3: graph of the gross sales

III.  Existing situation

S  Knows facts

S  Mr. Okono admitted his error

S  Elimination of the corruption in Ghana

S  Consequences of this particularly bribe

III.  Existing situation

S  Communication S  Weakness: the head office is not informed about the bribe

S  Intercultural S  Strength: bribery is a widely used practice in Ghana

S  Ethics S  Strength: native Ghanaians as employees

S  Management S  Strength: Mr. Okono is a good element in Ghana

IV.  Statement of problems

S  The new Ghanaian government is doing a real crackdown against corruption in the country

S  The company cannot be certified as financially clean

V.  Options

S  #1 To keep Mr. Okono and not to act:

+ -

No need to hire someone else

The company is outlaw

V.  Options

S  #2 To fire Mr. Okono and not to inform the government:

+ -

The company is protected The government cannot punish

The company needs to hire someone else as good as him

V.  Options

S  #3 To keep Mr. Okono and to refer to the government

+ -

The company keeps a good element The company respects the law by denouncing its bribery

The company will be punished The government will keep an eye on the company

V.  Options

S  #4 To fire Mr. Okono and leave the country:

+ -

No image problem No conflict with the government

Loose of the market

V.  Options

S  #5 To keep Mr. Okono and to pass a law making bribery legal:

+ -

Continuation of the activities No need to hire someone else

Problems with the government

VI.  Discussions

S  Do you think these corrupt practices are essential in certain countries to facilitate business ?

S  Do you think companies should not set an example by stopping such practices or otherwise do you think they should do business according to the customs of the country?

S  How can we clean this kind of country where bribery is widespread?