CSR, LMCMC metals company founded by Mr. Lawrence Marconi in 1945 to supply steel to the new Pontiac-Fisher Body plant in Hamilton, Ontario and Mr. Jack Hampton, vice president of sales for LMC metals company shock when he received a letter from one of his supplier GENESCO who are planning a very special meeting for their peak performer in the sales department. They ask Mr. Hampton to sponsor one of their events to show their presence and gratitude towards the company. List of the sponsorship events along with their cost are described in the letter. 1. GENESCO was a leading national and international producer of heavy industrial equipment. GENESCO vice president and General Manager Mr. Joseph P. Sanctity ask LMCMC there supplier to sponsor one of their sales event to be a part of GENESCO family and meet & greet with their Regional Vice President, District General Managers, and Sales Representatives. The key ethical business problem is to sponsor one of the event organize by GENESCO even GENESCO knew the limited nature of LMCMC’s promotional budget. It’s an ethical business problem for LMCMC how to sponsor this event. Reasons in support of it are: a) According to law these kind of request are prohibited. As mentioned in the case competition in the industry was such that an average profit margin was about 3 percent of sales. Government regulation such as the Foreign Corrupt Practice Act of 1977 and its revision in the Omnibus Trade Act in the late 1980s had influenced both international and domestic to constraint gifts as a business practice. Even Internal Revenue Service of United stated requiring you to report in your income any kind of gift you received from your supplier. b) Secondly LMCMC has no formal policy of these kinds of sponsorship expenses. Undoubtedly, the people of GENESCO knew the limited nature of LMCMC’s promotional budget. LMCMC