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Pignatelli Do

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Submitted By jmorepower22
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Chapter 2

1. What should Pignatelli do? What would you do and why?

Pignatelli was put into a tough situation for many reasons, primarily because Italy approved the building of a 6-million-ton facility. Then government officials only allowed him “production permission” for 3.9-million-tons. Out of the four possible scenarios the safest would be to play it straight and gain government authorization, however it is not the best option in my opinion due to the fact that this process can take many years and Pignatelli would be losing millions each year.
The second option seems to be the safest, because he does not involve himself in any illegal activity that can be traced back to him. If he asks his more-influential partner to pressure government officials, then he is not personally committing any crime and the government authorization is still obtained.
That is the choice I would personally make because I see it as a safer alternative to the other two possible choices which involve bribery, either directly or indirectly, yet it would not cost me as much time and money as playing it straight through. In the scenario that I would play it straight through I would be losing money when running the facility at 3.9-million-tons, when I was approved the building of a 6-million-ton facility.

4. Does Pignatelli have a responsibility to Italian citizens to build an environmentally friendly refinery above and beyond what the law requires? Is it appropriate for Gulf to spend this extra money and essentially take it away from shareholders?

No Pignatelli does not have a responsibility to Italian citizens to build an environmentally friendly refinery above and beyond what the law requires. As a business owner Pignatelli’s main responsibility is to that of legal issues. As long as he is committing no crime then I see no issue in him not going beyond the call of duty.

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