Business Case Analysis
The Celtel Corporation has operated under strictly plain rules of doing 'clean business'; however, the choice of operating in African states was bound to pose a problem in their business dealings sooner or later when the widespread corruption in the region would catch up in a way that the co-founders, Terry Rhodes and Mo Ibrahim, would not be able to weave around and overcome. Initiating a mobile network license in the region of New Guinea was the pinnacle, thus, that posed the most financially devastating crux for the company (Karim et al., 2009).
While on prior occasions, Rhodes and Ibrahim had managed to find ways where bribery could be clearly avoided, the New Guinea government clearly would not let the company expand their offices in the region without it. Sir Alan Rudge, who had taken over as CEO from Ibrahim, was new to the intensity of the situation and faced this as the toughest challenge at the very beginning of his service as CEO of Celtel. There are three clear options for Celtel to adopt under the current circumstances as recognized...
It was not an easy situation for a young company to be in as they had made too huge an investment for attaining the license, $750,000, and now could not back out without triggering a chain reaction that could lead to bankruptcy (Karim et al., 2009).
The first option of would paying the bribes to the New Guinea government ensure that the company will be able to launch its operations in the country soon. The company had invested $750,000 to attain the license in the region; hence paying the bribes amounting to $50,000 would not amount to much and could be reimbursed by the anticipated profits of the company. However, this line of action would seriously taint the company's profile of conducting a 'clean business'. Simultaneously, there is no guarantee that the bribes would stop there and the Guinean government will not look to take more…
