Albert 'Jack' Stanley in Nigeria (A)
Posted: 2 Mar 2012
Date Written: August 2, 2011
An international joint venture successfully bid for contracts to build six LNG trains on Nigeria's Bonny Island but, before the final train came on stream, became entangled in a widening corruption probe triggered by an unrelated accusation against an employee of Technip, the French JV partner. The (A) case discuss the JV's "business as usual" approach to doing business in the context of Nigeria's political culture and the predicament of the JV's alleged manager, Albert "Jack" Stanley, after being terminated in 2004 by Halliburton, parent of the U.S. JV partner, for taking kickbacks.
Learning Objective: The case is intended to be used to explore the following questions: what's wrong with bribery where everyone knows that the only way to procure contracts In a given country is to bribe officials; how much responsibility do parent companies have for the actions of their subsidiaries and how should they discharge these responsibilities; and what options are available to individuals caught up in corruption probes. The case introduces the FCPA, the UK Bribery law, and the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. It may also be used to discuss the extraterritorial effect of anti-corruption laws and the reasons countries seek to regulate business behavior that occurs completely outside their borders.
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