This case derives from a firsthand account gathered as primary data across multiple interviews and written exchanges with the protagonist a few years after the case events took place. Permission from the main protagonist (Saami) was acquired. Due to the sensitivities of the case, individual names, business names, time frame and financial figures have been disguised to provide anonymity while maintaining the essentials of this true case. Secondary source information, when helpful, is also referenced. Any resemblance of disguised individuals or organizations to actual individuals or organizations of the same name is coincidental.
Saami Iravani recalls being a 28-year-old up-and-coming foreign purchase manager for IronVest Steel Group in Iran, struggling to recognize the ethical implications of his actions as he considers completing a project that involves a sophisticated international over-invoicing and kickback scheme that also skirts around international sanctions. The case, though disguised, comes from a firsthand account of events and is relevant to anyone who could affect or be affected by a culture of over-invoicing. Managers, particularly in Middle Eastern countries (but anywhere else such an over-invoicing culture exists), can use this case to increase their awareness of such ethical issues. By learning to mindfully examine their judgment and behavior related to these issues, students build their ethical skill while becoming more educated about these issues that often arise in business interactions, particularly high-budget infrastructure projects, in many countries.
This case is especially appropriate for graduate students taking a course in:
Business Ethics;
International Business; or
Supply Chain Management.
