Bribery and Corruption Casebook: The View from Under the Table

CHAPTER 33

Ethical Governance: A Mandate for Outsourcing

JYOTI KHETARPAL

Marketing, operations, human resources and accounting are recognized as essential functions for a business to run smoothly, but there are other divisions that support these departments and are necessary to operations. Radel Crowe headed one such division, procurement, in the organization in which he was employed. Radel joined Rhodo Industries in its second year of operations. He was hired to be the procurement manager based on his substantial industry experience. As a staff member who had not been with Rhodo since the very beginning, he felt the need to prove himself and to consistently exceed expectations in his daily work. He wanted the recognition and approval of the leadership team.

Radel was from a small town and had not attended college or obtained professional credentials, but his loyalty and honesty made him popular with senior officials. He also demonstrated an ability to achieve great results in his department without needing too much guidance. As a result, he was given more responsibilities to shoulder and began reporting directly to the president.

Although management respected Radel’s work, his peers and subordinates considered him to be rude because he set the rules for his department and strictly enforced them; violations often resulted in job loss. Others resented Radel’s rapid ascension up the career ladder and suspected there was favoritism at play.

Opportunities in Outsourcing

Rhodo Industries ...