IBM Argentina: Competing with Corruption?

Proceedings of the International Association for Business and Society 18:493-494 (2007)
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In 1994, the Argentine Inland Revenue service investigated a case of suspected tax evasion that became more newsworthy when it was discovered that $37 million bribes were paid by IBM Argentina, the subsidiary of Armonk, New York-based International Business Machines Corp. The bribes were paid to Argentine government officials to land a $250 million contract to modernize the state-owned Banco de la Nación Argentina, which was and still is the country’s largest bank. The IBM IN ARGENTINA series introduce the legal and ethical dilemmas that managers face when the moral standards at the host country appear to be lower than at those at home and highlight the consequences that managers may suffer when they perform illegal/immoral activities on behalf of the firm. Intended audience, teaching objectives, research methods, and sample questions are briefly discussed in this summary



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