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– Nelson Mandela

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Q Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm's position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so? Please explain how Saint Leo’s core value of responsible stewardship is reflected in your answer.

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Maximizing value of shareholder can be regarded as a buzz word for making sure that per share earnings or EPS is maximized. It is required for the companies of the United States to comply with the FCPA (Foreign Corrupt Practices Act) of 1977 that forbids the companies of the United States in a strict manner from bribes payment to the foreign officials. Provisions are held by the FCPA for heavy fines in an extreme manner or/and imprisonment for officials of the company who are caught for bribes payment to the foreign officials (Gitman, 2005).