SINGSON, DONNA MAE A.

BSA 2
Case - Xaquiri LTD
FACTS

XAQUIRI has developed a successful business model in the last 20 years. The board of
directors is now discussing the possibility of extending its operations to other countries.
Pharmaceutical companies do not sell their products directly. Instead, they contract local
distributors who interact with local doctors.

Imagine that you are a member of XAQUIRI's compliance team. Identify the
potential corruption risks and develop measures to mitigate them

We all know that there are a lot of ways especially when we talk about corruption and it
is because money can make us in doing bad things, just to get what we wanted, however
I am not generalizing it but sometimes we can commit corruption even in the simple ways
and that is fact. Well, if I were a member of the company's compliance team, I would
suggest that they make a little change to their business strategy because there is a
possibility that the local distributors can deal with customers with having an overpriced
retail selling price which is a form of corruption and we cannot deny the fact that some of
the distributors especially those in local can make fraud using the name of the company,
and there is a possibility also that local distributors can only choose to sell the products
to their direct connections which is unfair. XAQUIRI LTD should not commit entirely to
marketing their products through local distributions although it will be a big help to the
company to sell their products faster but the risk of it that corruption will be executed in
that ways because we cannot give a hundred percent trust to local distribution. This is not
to say that they should stop, but rather that they should reduce the practice to a smaller
scale and have a trustworthy team dedicated to overseeing the local distributors
transaction whenever XAQUIRI LTD is involved. The corporation must then engage in
some type of self-promotion. The corporation must then be directly involved in the
distribution of its goods and services especially that the company is a developed
successful business.