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Asis Electronics

Reference: IVEY-9B11M057-E
Year: 2004
Number of pages: 3
Geographic Setting: Norway
Publication Date: Jul 21, 2011
Source: Ivey Business School (Canada)
Type of Document: Case
Industry Setting: Manufacturing;

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Description

The controller for Asis Electronics, a subsidiary of a European-based corporation, was concerned that Asis might have overcharged the U.S. Ministry of Defense in a contract for transmitters. However, Asis’s chief financial officer did not address the matter when he learned of it. After being asked to sign an annual compliance document related to anti-corruption practices, the controller needed to decide whether or not to report the irregularities through established “protected communications channels” that ensured confidentiality.

Learning Objective

The case is used in conjunction with International Farm Equipment Co. (product #9B11M056) to introduce the Foreign Corrupt Practices Act (FCPA) and discuss its impact on corporations and managers. Students will become familiar with what constitutes a bribe under this law and the importance of conducting due diligence to avoid exposing their companies to potential civil and criminal penalties.

Keywords

Accountability Contract Law Corruption ethics Human resource management Northeastern United States