Presently, the urge to make huge profits forces companies to take part in activities that end up affecting their reputation negatively. An example of such firms is SAP, which is located in Germany and it deals with the issuance of software licenses across the globe. As it is the case with many other IT companies, SAP utilizes distributors, consultants, system integrators, and technology deployment consultancies in sophisticated ways to increase their sales in the target markets.

The main issue in the SAP case is whereby Vicente Garcia, the vice president in charge of the strategic and global accounts liaised with the SAP distributors to bribe the government of Panama. The main aim was to win a significant technology upgrade deal. As a result, the Panamanian government awarded it with many other contracts valued at $1.2 million apart from the primary one worth $14.5 million. This move violated the Foreign Corrupt Practices Act (FCPA). According to Matthew Heller, SAP was forced to part with $3.7 million to clear its image regarding the briberyclaims.

The fact that Garcia’s misconduct was not flagged easily by the internal control at SAP indicated the vulnerabilities of IT companies (Heller). Garcia could falsify internal approval forms, hence winning huge contracts.Surprisingly, the company did not scrutinize the employees’ need for discount and this was a way that serious bribery claims surfaced. To deal with such ethical issues which include bribery, the perpetrators are not only fined but also jailed. For instance, Garcia was sentenced for 22 months after he was proven guilty.

In conclusion, SAP epitomizes bribery cases affecting an IT giant. SAP bribed the Panamanian government to secure a lucrative software upgrade contract. Other unethical ways of benefiting from the company included false invoices and bogus deals.

Works Cited

Heller, Matthew. “SAP Fined $3.7M Over Panama Bribery Scheme -“. CFO, 2019, http://www.cfo.com/legal/2016/02/sap-fined-3-7m-panama-bribery-scheme/.

 
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