Case Summary
The case study uses diverse ethical and philosophical concepts to illuminate an ethically doubtful dilemma that Ankur Grover, a medical graduate, faces. Grover faced this dilemma in his quest to negotiate a potential business deal involving medical equipment with Prince Khalid Specialist Hospital and its operational managers (Dietz et al., 2007). Grover was a US-educated sales account manager working with Medical Equipment Inc.
The company was renowned for developing and manufacturing very high-technology medical equipment. However, Grover devoted considerable time to detailing diverse strategic sales approaches and creating a trusting relationship, which encouraged the hospital’s cardiology and biomedical department directors to purchase his products (Dietz et al., 2007). However, his efforts never bore fruit as expected, and he faced resistance from the hospital’s purchasing director, who mandated all major purchases.
According to the case study, Al Humaidi, the purchasing director, refused to buy Grover’s medical equipment offer despite their technological superiority. Al Humaidi instead plans to recommend Hammad Najjar, who was known to be the sales account manager at a rival company, Wilson Surgical Supply (Dietz et al., 2007). Rumor said Al Humaidi would accept a side payment to condition the deal. It is crucial that Grover is aware of the local culture’s morals and should always reason ethically to avoid dilemmas when faced with situations.
Understanding of the Local Culture
Grover did not comprehend the local culture because he grew up in an expatriate environment and had little contact with the people of Saudi Arabia. Grover strongly believed that he had a good understanding of the local culture because, during his childhood, he was raised in Saudi Arabia before moving to the United States to continue his studies. He was born in India and followed Hindu culture and traditions (Dietz et al., 2007).
However, in Saudi Arabian culture, foreigners do not have any influence whatsoever among the predominantly local Muslim nationals. James Rachels’s philosophical concept of the challenges of cultural relativism posits that a society’s moral code does not hold a special status; instead, it is merely one among many, and there is no universal truth in ethics (“Ethical reasoning in practice” 2023). Additionally, there is a moral truth that applies to all people at all times, and it is also beneficial to recognize that different groups of people worldwide have distinct cultures.
Grover attended his childhood education in India and furthered his higher education studies in the United States. His brilliance and competence helped him secure two internships, one in France and the other in the United States. This internship helped him understand Western culture and how Western businesses operate.
He is alienated from Saudi business practices. He agrees with Norman Bowie’s approach to business ethics regarding the role of morality and obligations in working for a company (“Ethical reasoning in practice,” 2023). This aligns with a particular framework of duties, starting with the initial impression of a sense of loyalty towards the employer. It also needs to accept specific standards of excellence and strict regard, primarily defined by the job characteristics.
The Option of a Medical Equipment Showroom in France or the United States
Grover acted with integrity, which helped him establish a relationship of trust and honesty with diverse hospital members. This was in line with Aristotelian ethics; however, in this case, Grover devoted much of his time to building a connection with the incorrect people (“Ethical reasoning in practice,” 2023). Instead of focusing on the foreign cardiologist manager and the biomedical engineer, he should have met and created a good relationship with Al Humaidi. In Saudi Arabia, a strong hierarchy identity is also shown in business.
Grover missed this vital factor because he overlooked the importance of establishing a relationship with the national purchasing director. However, the Saudi Arabian nationalization scheme encourages Saudis to perform business exclusively with other Arabs (Dietz, 2007). Moreover, in this case, Al Humaidi is seen to have already created a durable connection with Hamad Najjar. On the contrary, Grover, due to his Indian background, is at a disadvantage in this scenario, despite his efforts to establish and create a relationship with the purchasing director.
This is similar to paying Al Humaidi a bribe in the following ways: Initially, a bribe cannot be justified, which is unethical. In this matter, the philosophical stand of Emmanuel Kant will apply. Kant’s deontological perspective suggests that the results do not matter, but the intention does (“Ethical reasoning in practice,” 2023). The logic behind the laws of the categorical imperative principle suggests that if an action is good for others, then it should be passed as a universal law because it is righteous for us.
However, with consideration, bribery is unethical as the categorical imperative implies treating people as an end and never as a means (“Ethical reasoning in practice,” 2023). Moreover, when someone is intimidated and bribed, he cannot make a sound judgment without feeling manipulated. Hence, with determination, we can tell if treating someone as a means or a thing is morally wrong and ethically unacceptable.
Required Actions
Grover must comply with and act according to the ethical business guidelines, even if he has to travel and personally present the latest technology of his medical equipment. Offering a trip to convince the purchasing director is considered bribery. On the other hand, his competitor, Najjar, is offering additional incentives in addition to money. Offering money would be a substantial error since the government owns the hospital and has the largest budget available. Therefore, offering money to secure the tender can be considered bribery and discredit any subsequent move towards further negotiation.
Grover’s ethical dilemma correlates with Thomas Hobbes’ theoretical concept of corrupt judgments. Grover should act in a manner that will help achieve the best results. This particular situation aligns with Jeremy Bentham’s principle of utility. The principle indicates that a person should always aim to yield tremendous pleasure to the largest group of people in society (“Ethical reasoning in practice,” 2023). Additionally, Bentham believes that encouraging the pursuit of profitability in a free market environment is vital to maximizing an organization’s standing. The business manager should operate in a way that yields the optimal outcome for the business process.
In conclusion, Grover should adopt Bentham’s philosophical approach and act in the best interest of the company. Initially, he should communicate with upper management a case evaluation of the situation and a possible solution. Moreover, he should hire a Saudi Arabian officer as a spokesperson for medical equipment.
Then, the organization will request a series of meetings to present and negotiate directly with the hospital’s purchasing director regarding medical devices. By doing so, there is no possibility that the sale will be denied. This action will produce the best results, as the hospital will receive the medical equipment, and Grover will also benefit from it.
References
Dietz, J., Grover, A., & Guerrero, L. (2007). Medical equipment Inc. in Saudi ARABIA. Richard Ivey School of Business.
Ethical reasoning in practice. (2023). Chapter 2 [Lecture notes].