Dilemma 14:  Bidding to a contractor in a high corruption risk market - Dilemma

You are sales manager of a mechanical and electrical sub-contractor.  You are asked by a contractor based in your own country to bid to it for a sub-contract package in relation to a project which the contractor is bidding for in another country which is considered a high corruption risk country.  You are informed that the client to which the contractor is bidding is a government ministry.  You have heard that that ministry is regarded as highly corrupt.

You discuss the bid with the managing director of your company.  He believes that your company should bid.  When you raise the issue of possible corruption in that country and sector, the MD states that you should not be concerned about that.  “That is the contractor’s problem.  We are just bidding as sub-contractor.  We are not going to pay a bribe to the contractor.  It is nothing to do with us if the contractor pays a bribe to win the contract.”

What do you do?

Consider your position, and then go to the answer on the next page.