(Solution) - Kim Lee is a branch accountant in a multinational company -(2025 Original AI-Free Solution)

Paper Details

Kim Lee is a branch accountant in a multinational company Green Cocoa plc responsible for purchasing supplies from a developing country. Kim Lee is authorized to enter into contracts up to $100,000 for any single transaction. Demand in the home market is growing and head office is pressing for an increase in supplies. A new government official in the developing country says that Kim needs an export permit from his department and that he needs a payment to be made to his brother in law for consulting services if the permit is to be granted. Kim quickly checks alter native sources and finds that the normal price combined with the extra ?facilitation fee? is still much cheaper than the alternative sources of supply. Kim faces two problems, namely, whether to pay the bribe and, if so, how to record it in the accounts so it is not obvious what it is.

Required:
Discuss the ethical issues.