Case Analysis: The Shakedown

I. Introduction

This case portrays the widely propagated and accepted phenomena of bribes and corruption in developing countries. Specifically how it affects every sector of the Ukrainian society, therefore making it difficult for the American investors to establish companies there and to prosper solely on doing good business. The case describes the types of obstacles and ethical dilemmas being created for the investors as a result of bribery and extortion.

Situation

In analyzing these issues, we will first present a brief introduction to the situation.
Mr. Pavlo Zhuk, a young, but already well established, entrepreneur from California, is faced with a difficult ethical business decision concerning …show more content…

Americans may feel they echo- identically- this same sentiment with our eastern European friends, but be assured the U.S. is to be considered the minor leagues in comparison to these seasoned pro athletes.

Ukraine has been in turmoil for some time now, namely since it claimed it’s independence from the Soviet Union in 1991. Ukraine had its share of economic woes prior to this but since then, what was thought to become a land of economic prosperity has since become a melting pot of governmental mismanagement and corruption. This nation is the equivalent of a child growing up parentless, forced to find its own way in a world that is, sadly enough, full of individuals caught up in their own quest to emerge strong and triumphant.

“The only starting point that could be used for reference is the nation’s historical identity, comprised of its language, culture, traditions, and family structure. One minor hindrance is that in today’s global environment of global influences, any nation, especially one who is in a period of economic transition, will have no clear vision when it comes to ethics.” Unit 3of MGT 500 discusses some different approaches to arrive at ethical decision making. Of those presented, the Moral -Rights approach describes Zhuk’s behavior best, it states:

• Moral