Do you pay the motivation fee? Why? What are the legal aspects you will take into consideration in order to justify your decision?

Please prepare a document explaining your decision, your arguments and the legal reasons for your decision

The main issue that our company is facing is that we are one of the well-known bidders in our market of Vandalia for the projects of solar panels. The company is currently involved in the contract for the development, improvement, and construction of solar panels with the Government of Vindalubia. The ministry of energy of Vindalubia is requesting for the motivation from the company. My company is engaged in talking about construction solar panels and Vindalubia government. The minister of Energy has asked me and my company for the motivation fee that will ensure the government to sign the contract based on predefined consideration. The CEO is in the dilemma over to find the reasons that empower the decision of giving this incentive. Our CEO is fine to do so, and he consulted me to work on the project. To decide on this matter, I will first find different considerations and legal aspects that are related to the issue. The legal aspects will be based on local and international laws that govern practices. Considering all the aspects, the Minister’s request for the kickback qualifies for the consideration of corruption. The minister is taking advantage of his position of being in the government to grant the contract to the company. It would be not right if the company pay the motivation fee as it will go against all business laws and policies in Saudi Arabia.

I will brief my argument by having solid motivation line:

“I ethically, will not consider and accept doing anything that is not clear enough. The issue is that it seems less like motivation as much as it is like bribery. Legally, on the condition of accepting the criminal action, I will be supposed as a briber based on Saudi Law article (10)”.

According to the Saudi law article (10), the briber, mediator, and any other accomplice in any offences outlined in the law will be punished according to the relevant article. The case considers management law and ethics and if a person who knowingly agrees, assists, and incites in committing such type of offences will be supposed as an accomplice even if the offence is perpetrated as a result of the agreement.  

The company must practice corporate governance at the time of deciding what type of action is required to be considered. After consulting the board of directors and management, I would advise the CEO to not offer any incentive to the minister. Even though the move of signing contract between company and government of Vindalubia would have a positive effect but the process is not legal. The ethical factors that must be considered while making the decision include consideration of procedures, policies, rules, ethical dilemmas, law, and perfunctory response. The ethical behaviour requires the management to uphold the standards and to conduct clear cut decision.

Part 2:

·         Your company signed a contract for the construction of solar panels with the Government of Vindalubia (fictitious state)

·         Your company paid a motivation fee for the Minister of Energy of Vindalubia in order to facilitate signature of the contract with the Government of Vindalubia

·         A few months later, the Government of Vindalubia terminated the contract

·         The CEO of the company is really concerned about this issue CEO asks you to look into this issue

-          What should the company do?

-          What are the methods of resolving the dispute? Why?

-          Please prepare a document explaining your decision and the reasons why

you propose your answer

The company signed a contract with the government of Vindalubia that agree to give incentives to the minister of energy. Unfortunately, after a few months, the government terminated the agreement that leads the firm to deal with the negative repercussions. The person tasked to recommend different alternatives to address the matter. I would like to address and advise the company to consider some other alternatives for the dispute resolution strategies. The company must review the legal functions and contract that cause termination. The firm used unfair means and entered into the agreement. In effect, the risks are to pay hefty fines or maybe imprisonment of individuals that are involved in approving the contract. The company could be engaged to find alternative dispute resolution methods. These methods include mediation to resolve conflict and arbitration. This approach could save the time of the company and safeguard its reputation. Most importantly, the possibility is to mitigate the negative impact associated with the association of the company in corruption.

In order to resolve the issue, first of all, I would suggest contacting the government of Vindalubia and clarify the issues behind the contract termination. The company and government are in a contract that provides rights to reconsider the issues and how the contract can be renewed under the conditions. The first step is to review the contract and reread all the clauses particularly those related to the contract termination. On the basis of contract clauses, the company can claim rights and we can rise the contract dispute. It is important to find the location of the dispute. If the dispute location is not in the country, I would suggest the related management team of the contract to find the independent experts but in the relevant field so he can assist the company in resolving the controversies. The suggestion and opinion of experts can cover all sort of technical as well as non-technical assessment. The opinion of an expert was less formal, and it will follow the aggressive procedure out of the court proceedings. The opinion of the experts can be used for technical assessment, processes, and machinery. The assessment and suggestion of expert will provide services to test the quality of the product, assessment of value shares, cause of failure, delay issues and other conditions. The assessment and findings of expert will provide assistance in measuring delay in services, decisions, and other recommendations. Alone the bindings and assistant will be not able to usually find the bindings and enforceable decision. However, the assessment will be based on findings that make the time of disputed events and how they can be resolved. The services will be highly persuasive for arbitral tribunals and judges.

Part 3:

·         You recently joined your company as the Chief Compliance Officer

·         The company is a medium sized company based in Riyadh doing business in the construction industry

·         The CEO of the company is really concerned because the Company does not have a Compliance and Ethics Programme. The Company previously had difficult experiences in negotiating contracts with new clients and subcontractors

·         The CEO asks you to propose a new Compliance and Ethics Programme to be discussed at next Board Meeting. The CEO also wants you to make proposals for a Corporate Governance of the company if this can facilitate the setting up of the new Compliance and Ethics Programme.

-          Please prepare a document detailing your proposed Compliance and Ethics Programme and a new a Corporate Governance structure

-          Explain the reasons for this new programme, the objectives and the legal background

I have been appointed as a chief of corporate control department, I will follow all the best possible practices by improving the designing of my program. The program will result in high compliance in the company. I will keep my consideration about the program and how it could be enough to change the management. I will program condition “supported and followed by the top management” and it will be related to the commitment of employees.

I have prepared a document that deal with the proposed compliance and the ethical program is designed with the structure of governance. The program will be as follow:

Introduction

The code of ethics and business conduct expresses the commitment of the company for the business contract. The rules, code of ethics and laws are applicable for the highest ethical standards. All the associates, employees, workers, independent contractors, and directors will follow all the codes. The whistleblower policy is another important constituent of code and company is expected to abide by the vendors and suppliers. The code is developed completely but it is not intended to cover all the policies and laws. There is no possible ethical issue that can be faced. Each employee should be well understanding about the policies and laws along with the policy guide. The policy guide is not part of the code in the policy guide. The managers of the company must be models of ethical behaviour. The part of code is well organized for the company whistle-blower.  It is important to consider the rules, regulations, and other considerations that can be developed for the growth of company. If any worker and employee have questions regarding code of conduct and services. It does not apply in the specific situation and workers must deal with the chief compliance officer.

Compliance rules, law and regulation

The policy of company is required to be developed according to the requirement. The employees will comply with the applicable regulations, laws and rules. All the workers must consider the issues and problems related to the working conditions. All the workers must be dedicated to complying fully with the spirits of laws and letter that can be applied to our business. The policy guide will be specially developed under the certain conditions of laws, regulations and rules that can be applied in the business. There are different possible areas that the program will cover in present consideration,

1.       Privacy and confidentiality

2.       Intellectual policy

3.       Health, safety, and environmental conditions

4.       Conflict of interest

5.       Harassment and equal opportunity of employment

6.        Fair and honest dealing with integrity

7.       Corporate opportunities

The structure of corporate governance includes general assembly, board audit committee, internal audit unit, board nomination, board executive, investor relation unit, board governance committee compliance, board risk compliance committee, and G.R.C sector. The whole component structure is mentioned in figure 1.