ARAB ACADEMY FOR MANAGEMENT, BANKING
AND FINANCIAL SCIENCES, DJIBOUTI
COURSE TITLE: Advanced International Business Administration
CASE STUDY 2: Ethical Dilemma:
You were recently hired as a manager for international operations of Despoyle
Chemical Corporation, a major manufacturer of dyes, fertilizers, and other
industrial chemicals. Despoyle has chemical production plants in twenty-eight
countries, including many developing economies. Despoyle has a decentralized
organizational structure and managers in individual countries operate their plants
independently of headquarters. After visiting various Despoyle plants, you find
the firm follows local environmental protection standards in different countries. In
India, Despoyle allows pollutants to flow freely into local rivers. In Mexico,
Despoyle generates pollution in local landfills and production sites. In Nigeria,
Despoyle’s factory emits air pollution that exceeds levels acceptable in more
advanced countries.
● QUESTIONS
As a new manager, you are surprised by the firm’s lax environmental practices
around the world. What should you do? Do you complain to top management and
risk angering your superiors? Do you try to modify Despoyle’s environmental
