Caught at the Crossroads of Culture: Utah Asphalt in China

Abstract

Daniel Wang, educated in China, submitted an expense report for USD 72,000 along with a USD 4 million contract for asphalt material to his boss at Utah Asphalt company. Embedded in the expense report was USD 16,850 for “entertainment fees,” which Daniel felt was necessary to secure the contract from officials in a Chinese city. When his boss, Jack, demanded that Daniel stop unethically “bribing” government officials, Daniel was offended and worried that the company might be compromised if he could not continue to woo the customer. Why didn’t Jack understand?

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit A: Expense Report on Daniel’s Books

Expense report – Mianyang contract

Submitted June 2013

Price each (USD)

Number of people

Number of times

Total (USD)

Business class airfare China/Las Vegas

4,000

6

1

24,000

Flight from Las Vegas/Salt Lake City

300

6

1

1,800

Hotel suite – lake view (1 bedroom)

1,259

5

3

18,886

Daniel hotel

244

1

3

732

Meal cost per day

200

6

3

3,600

Drinks per day

225

6

3

4,050

Limo transportation

750

1

3

2,250

Gambling

500

5

3

7,500

Shows

250

5

2

2,500

Spa

250

5

2

2,500

Escort fee charged by Company

200

5

1

1,000

Entertainment fee charged by Escort

650

5

1

3,250

Grand total

72,168

Exhibit B: Expense Report Submitted by Daniel

Expense report – Mianyang contract

Submitted June 2013

Price each (USD)

Number of people

Number of times

Total (USD)

Business class airfare China/Las Vegas

4,000

6

1

24,000

Flight from Las Vegas/Salt Lake City

300

6

1

1,800

Hotel suite – lake view (1 bedroom)

1,259

5

3

18,886

Daniel hotel

244

1

3

732

Meal cost per day

200

6

3

3,600

Drinks per day

225

6

3

4,050

Limo transportation

750

1

3

2,250

Entertainment

1,123

5

3

16,850

Grand Total

72,168

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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