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Ethic code moral and ethic dilemma.

The case study is based on a series of in-depth interviews carried out with the owners and directors. The data were complemented by documentary analysis, including descriptions of internal processes, and industry information. The teaching note opted for an exploratory study using the open-ended approach of grounded theory.It is important to mention to the students that although the names of the characters and the company were modified for confidentiality reasons, the case actually happened.

Roberto Rodarte, an employee of Internet Architects Interactive, won a luxury car in a raffle from the hotel where he was staying in a business trip. Roberto decided to keep the car and did not inform the company of what had happened.The company did not have any established policies for these situations. Manuel de la Torre, a partner, thought that it would be fair if either Roberto give the car to the company Roberto, thought that the car belonged to him.The company decided to fire him. What could be done to avoid similar situations arising in the future?

The case can be used by administrative program students and Master of Business Administration students in courses such as management, good management practices, human resources, leadership and business ethics.

International business, Accounting and Finance.

Undergraduate and Postgraduate levels (advanced financial accounting, international accounting, other accounting and business courses with an international setting.

The case uses the Asia Pulp & Paper Company’s (APP) entry into the international debt market to highlight the consequences of different business practices between the East (in this case, Indonesia) and the West. On the one hand, it shows that APP was set up as the “front” to access international debt capital; on the other, it reveals the naïvety of Western lenders who parted with their funds without conducting a thorough background research on the financial viability of the company they invested in. The APP debacle is a poignant reminder for market participants and business/accounting students that the divergence of the business settings across countries can make business contractual arrangements tenuous and corporate financial information irrelevant to its users. It also exposes the unique ways of how some Asian countries conduct their business affairs.

The following are the expected learning outcomes: comprehend the impact of differences in culture and ethnic origin on business practices; evaluate the impact of cultural nuances on the legality of contracts in the international business setting; understand the impact of currency fluctuation on the financial position of multinational firms; and be more cautious in conducting business and entering into contracts with foreign firms.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CCS 1: Accounting and Finance.