Wilson Chemicals (Ghana) Ltd

INTRODUCTION

Since 1952 a subsidiary of British Company for chemical manufacturer was established in Ghana, named Wilson Chemical (Ghana) Ltd. There were three reasons for its success:

1. Fertilizer as the primary product in an agricultural based economy

2. The company employed many natives in top positions

3. Appointed a native Ghanaian graduated from Oxford, Joseph Okono, as the president of Wilson Chemical (Ghana) Ltd.

Under Mr. Okono’s management, the company achieved a great success in sales and profit. Moreover, because of his ability to work hand in hand with any local regimes and loved by his employees and clients as well.

PROBLEM & QUESTION

An independent auditor firm found some accounting discrepancies in 1984 at the total amount of Ð'Ј50.000 as incentives to local bureaucratic in governmental agencies to gain advantages for the company. This obviously worried the headquarter company. There came a very serious discussion whether Mr.Okono did the wrong thing and should be fired or not.

FACTS

Based on ethical point of view, what has been done by Mr. Okono was totally wrong, although there were excuses that it was done for the sake of the company to justify this so called bribery.

This matter was discussed intensely at the Headquarter of Wilson Chemical and according to the facts from the auditor cover letter, it was clearly stated for an intentional error in procedure as incentives to increase or maintain business and no attempt was done to cover it even though seemed to be in the past it has happened and written off as sales promotion cost and as a result the subsidiary could not be certified financially clean.

Another thing to consider is the ruling regime of Mr. Rawling, which at first seemed really focused on fighting corruption fro the boards of directors’ point of view.

On the other hand, after given a chance to clarify why there was an error of Ð'Ј50.000 in the subsidiary 1984 annual report, Mr. Okono admitted of doing so only at the amount of Ð'Ј47.000 and had used them for company’s purpose without taking personal profit. Noticed that there is still Ð'Ј3000 missing. No matter how acceptable this excuse is, for the sake of preventing fuel shortage supply for the processing plant, whether if the bribery was not done would give bad effect to the company or not is still an open question. Moreover, looking at the sales graph in exhibit 3 which showed a significant sales increase from Ð'Ј4800 up to Ð'Ј18.400, the number arises for more than triple in just a period of ten years after Mr. Okono was appointed as the president of subsidiary. It also proved his judgments and decisions were correct all along.

To make things worse, from 1982-1983 there has been at least 5 major cases of corruption in the country and they involved high rank of officers in the authority. This whole thing complicated the matter and somewhat created confusion and dilemma among directors of Wilson Headquarter whether to fire Mr. Okono or not, nevertheless they have to make the right decision for the company.

THEORY & OPINION

The answer lies between law and ethic, according to law in Ghana applied by the new regime, Mr. Okono was wrong by bribing the local government fertilizer agency and might be accused as a criminal along with his staff and this could also bring down the whole company with him as an immediate effect if he ever get caught, which seems likely due to some geopolitical turmoil by the purpose of the old but new regime.

Same thing goes from ethical point of view, Mr. Okono had committed