Manual for Azerbaijan companies Rena Safaralieva

NOTES TO CASE STUDIES  FOR  CHAPTER IV. PROBLEMS OF EXTERNAL CORPORATE 

ETHICS  

 

1. Option (а)  is fair competition. Option (b) is secret agreement and your chances that competitors will 

agree are very slim. Option (c) is an attempt to buy an employee of your client, which  firms with a solid 

reputation would not tolerate. Option (d) is one of the forms of corruption and speaks of weakness of the 

client company. If you choose any option, except for (а), you will not be able to make any substantial 

profit this time, as an unfair deal will cost you quite a sum, nor in future, as your company’s reputation 

will be damaged. Practice shows that in Azerbaijan today, big companies have more chances to oppose 

unfair and illegal methods of doing business than medium and small companies.  

 

2. Analysis shows that if option (b) used to be the most preferable  in the past, today there is a tendency, 

especially among foreign companies, in favor of option (а). As for the response of the client company, 

again, in the past they preferred to pay exorbitant honoraria to “consultants”, which also included 

informal payments. Today a client will, most probably, go for option (а) or (b). As for origin of a client 

company, Bribe Payers Index of Transparency International 

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, ranges countries in the order of frequency 

of their companies’ involvement in corrupt practices abroad. According to this research, participation of a 

Norwegian company in a corrupt deal is the least and of Russian – the most probable. Our country is not 

covered by this research.  

 

3. It is difficult to say unambiguously what motivates this law: caring about the nation’s health, protection 

of interests of big companies or an error of legislators. In any case, we have to recognize that this law 

simply does not work today.  

 

4. In the past small companies were forced to chose options (a) and (b). Today there are cases of 

successful application of option (c). There are pre-requisites for future success of option (d).  

 

5. In this case, in addition to ethical considerations, you should also take into account: (а) response of 

your deceived competitor; (b) your willingness to trust your company’s confidential information to an 

unscrupulous man.  Attempts can be made to avoid the leakage of information. Employment contracts 

should have a relevant article on non-disclosure of confidential information. If need be, this article can be 

used as a justification to bring court litigation against the alleged perpetrator.  

 

  

NOTES TO CASE STUDIES  FOR  CHAPTER V.  

LYING AND DECEPTION IN BUSINESS  

 

1. Of course, this decision of the Alievs’ is wrong. They  did not break the law, but still tried to deceive 

an insurance company by providing false information. Lying is incompatible with ethical norms. 

However, the final decision is to be made by the insurance company. The most correct way is to tell the 

truth.  

 

2. In this situation management of the plant must also share the blame – it is wrong to give 

unsubstantiated promises, which leads to unhealthy work attitude. In any case, appropriation of 

instruments and spare parts by employees also cannot be justified. Firstly, this is stealing, and therefore a 

criminal offense. Secondly, this worker sets a bad example to his colleagues.  

 

3. Samples offered in this case shall be judged separately, In the first case, ethics can justify the head of 

the family because he chose the least of two evils. Besides, problems which forced him to steal must be 

solved by society at large. However, from legal point of view, stealing is a criminal offense. As for the 

second case, any person, fleeing for his or her life, can resort to any means available. This act shall not be 

qualified as stealing, provided that the car is returned to its owner later. In the third case, it is wrong to 

distinguish between stealing from individuals and corporations. In both cases it is stealing.  

 

 

                                                 

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 See for more details  Bribe Payer’s Index at  

www.transparency.org

  

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NOTES TO CASES  STUDIES FOR  CHAPTER VI.  

MECHANISMS OF IMPLEMENTATION OF PRINCIPLES OF  BUSINESS ETHICS 

 

1. The best option under these circumstances is (с). It is best if management learns from you, rather than 

hearing from another source. Option (d) is also an appropriate way to start with inquiries. However, if you 

withhold information, your reputation may  be damaged. Options (а) and (b) would not do at all, as 

management is entitled to be aware of relations of its staff members with employees of competing firms to 

be able to ensure maximum confidentiality of commercial secrets. 

 

 

2. Under these circumstances option (с) is the most appropriate option.   Regardless of the type of 

activities, the  computer belongs to the company and Akif should inform his manager. In case  he is being 

paid for this job, he must inform his manager.    

 

3. Depending on  circumstances and individuals involved, every option can be justified. 

 

 

4. Despite your sympathy for Elnar, the most appropriate option here is (а). Other options are ranged in 

descending order of their preference: (с), (b), (d)  

 

5. Beyond any doubt, this is a bribe in disguise. A night club with a show is not the most suitable place to 

conduct business negotiations. In addition, the invitation is extended by a dependant party. You should 

either reject the invitation, or pay from your company’s funds, if these kind of expenses  are allowed. 

Many companies establish an upper limit for an  acceptable cost of a business dinner.  

 

NOTES   TO CASE STUDIES  FOR CHAPTER VII. CORPORATE SOCIAL RESPONSIBILITY  

 

1. A publishing house shall not have any legal liability for materials published; this does not, however, 

does not eliminate ethical obligations. It goes without saying that publication of such materials will harm 

interests of society at large. If the publishing house refuses to publish the book, they will avoid moral 

burden, but will not be able to guarantee that the book will not be published elsewhere. The publishing 

house should try to cajole the author to delete dangerous details and, in case of failure, to inform relevant 

state censorship bodies. In  the early 1990s many criminals in the USSR learned from media that a certain 

medication mixed with champagne resulted  in an instant, temporary black–out of a victim.  

 

2. The restaurant owner obviously violates rights of residents. The problem is whether benefits 

compensate inconveniences. In this case, shattered peace and quiet cannot be compensated by advantages. 

The majority of the above-mentioned inconveniences can be resolved at an extra cost to the owner by 

installation of sound proofing, a waste treatment facility, power generator, etc. Unfortunately, this 

situation is quite typical for Azerbaijan.  

 

3. The kiosk owner is wrong to place magazines with indecent cover photos in a conspicuous place, 

especially in the vicinity of a school. In many countries, customers wishing to buy this type of product, 

must apply extra efforts, e.g., using a ladder  to take the  publication from an upper shelf, where this 

material cannot be picked up children, or ordering by catalogue. On the other hand, the school principal 

should have paid attention to this fact long time ago. Finally, people must clearly understand where they 

draw a limit line for indecency. During the Inquisition, it was believed that demonstration of naked flesh 

in art  was so  indecent that many  Renaissance art works   were  painted over and restored later.  

 

4. The manager faces quite a challenge. Every applicant, except for the blackmailing school principal, has 

irrefutable advantages. This is exactly why companies are recommended to design their own social 

policies, basing them upon their ethical principles. It is easier to follow company policy and avoid such a 

poignant choice, for example,  by limiting  consideration of projects to support art.  

 

 

 

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