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  • Gulf Oil in Korea, 1966 Case Study Solution

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    Vinay Tejasvi Yallapragada
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    Gulf Oil Corporation made a $1 million contribution to the ruling party in Korea due to risks of canceling its $200 million investment and license to operate if it refused. The ruling party then demanded $10 million from Gulf Oil for the next election, presenting a situation of grand corruption involving private and political actors. Gulf Oil faced options to pay and risk repeated extortion, or not pay and potentially lose its Korean operations. The document recommends Gulf Oil act in its self-interest to survive in the corrupt system.

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    International business Strategy GUlf oil in Korea case study solution

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    Gulf Oil in Korea, 1966 case study solution

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    Gulf Oil Corporation made a $1 million contribution to the ruling party in Korea due to risks of canceling its $200 million investment and license to operate if it refused. The ruling party then demanded $10 million from Gulf Oil for the next election, presenting a situation of grand corruption involving private and political actors. Gulf Oil faced options to pay and risk repeated extortion, or not pay and potentially lose its Korean operations. The document recommends Gulf Oil act in its self-interest to survive in the corrupt system.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    75 views4 pages

    Gulf Oil in Korea, 1966 Case Study Solution

    Uploaded by

    Vinay Tejasvi Yallapragada
    Gulf Oil Corporation made a $1 million contribution to the ruling party in Korea due to risks of canceling its $200 million investment and license to operate if it refused. The ruling party then demanded $10 million from Gulf Oil for the next election, presenting a situation of grand corruption involving private and political actors. Gulf Oil faced options to pay and risk repeated extortion, or not pay and potentially lose its Korean operations. The document recommends Gulf Oil act in its self-interest to survive in the corrupt system.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    CASE BACKGROUND

    $200 million direct investment

    in Korea by Gulf Oil Corporation

    Ruling party approached Gulf Oil Corporation for $ 1 million to finance election campaign Risk involved in refusing the $1 million finance cancellation of the investment / license to operate Gulf Oil Corporation made the contribution due to the risk involved Next general election- A contribution of $10 million demanded from the company by the same ruling party

    OPTIONS AVAILABLE: SELF INTEREST VS. ETHICS


    PAY $ 1 0 M N Instance of Grand Corruptioninvolves private actor(Gulf Oil Corporation) and the elected politicians( Ruling party of Korea)

    D O N T PAY $ 1 0 M N
    Korean government will create obstacles in carryout out operations

    Will lead to repeated extortion

    Worst case scenario: exit the business in Korea and suffer losses

    Even if the other party wins there is no assurance that gulf oil will not need to fund their campaign

    OUR STAND : GO FOR SELF INTEREST

    Thank You

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