Panelists serve up guidance on ethics

So you’ve got $50,000 tied up in materials, travel expenses and staff time for a critical trade show in Rio de Janeiro, and the Brazilian customs agent is blocking that vital equipment you need to bring into the country.

Crunch time is here. The show opens soon. You’ve provided all the documents. Yet the customs guy is still denying entry. Finally he says, “If you give me $1,000, I can clear you right now.”

Sometimes, a panelist said Tuesday during a discussion of business ethics, you just weigh the dollars involved and make the payment, even though such things go against your anti-bribery philosophy.

Such dilemmas are not uncommon when doing business in foreign countries, panelists said during a session at Gallup Inc. sponsored by the Greater Omaha Business Ethics Alliance at Creighton University.

“There’s no silver bullet for every situation,” said Gustavo Oberto of Omaha, managing director of sales and marketing for the Americas at Conductix-Wampfler, a German electrical transmission company.

The example from Brazil happened several years ago, Oberto said, but such situations can arise today. Ethical practices vary so widely among countries that conduct common in, say, Nigeria would be forbidden in Canada.

Businesses that take the long-range view and are prepared can avoid such problems and, if they are unavoidable, make the right decisions to keep their integrity while still succeeding financially, the panelists said.

“Good people want to get out of that corrupt situation,” said Leslie Little, CEO of the Omaha management consulting firm E3 Inc.

It’s important to study a country’s ethical culture before trying to enter its economy and to find local partners who will stand up for ethical behavior, she said.

Even charitable groups, known broadly as nongovernmental organizations, can cause economic problems for the countries they say they want to help, she said.

Thomas Gouttierre, dean of international studies at the University of Nebraska at Omaha, said such charities may pay excessive wages when they hire local people, causing inflation that harms local businesses and consumers. That’s one reason apartment rent in downtown Kabul, Afghanistan, rivals that in some parts of Manhattan, despite Afghanistan’s struggling economy.

Little said business people must learn local customs and be ready to adapt to meet local standards. But sometimes you need to walk away, even if you’ve already made a big initial investment.

“There are times when other cultures are wrong and you don’t want to adjust,” she said.

American companies can use their strengths to compete against less-ethical companies that try to win business through improper influence, she said. A local partner gains prestige when it represents an American brand, and American companies can add value by bringing intellectual property and other advances into a country through local partners.

Sticking to ethical standards pays long-term dividends despite potential short-term losses, Little said.

For example, American authorities began enforcing strict controls over international finances after 9/11 to keep money from flowing to terrorists, including efforts to crack down on secret Swiss bank accounts. The veil on such accounts has started to lift, Little said, sending a clear message that “dirty money is not going to be accepted any more.”

Contact the writer:

444-1080, steve.jordon@owh.com

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