Corporate Greed

In: Other Topics

Submitted By scheek555
Words 516
Pages 3
Customer Strategy Solutions (CSS), a California based developer of order-fulfillment systems, is confronted with a shakedown (Bodrock, 2005).
Shortly following the company’s CEO, Pavlo Zhuk, setting up a software development center in Kiev, local officials said that CSS had not filed 5 of the 17 tax schedules as required. Furthermore, Ukrainian tax officials claim that the company owes the government tax arrears of 86, 954 “hryvnia” (Bodrock, 2005). That is close to $16,000 in U.S. dollars, by the way.

Given that he and his associates had done everything accordingly, Zhuk was stunned by the accusation. Bear in mind, this isn't the first time the CEO has encountered trouble in Ukraine. For instance, in the process of getting his software center equipped, a state-owned telecommunications utility had made it difficult for Zhuk to get the phone lines CSS needed (Bodrock, 2005).
The senior business manager, for example, had told Zhuk it would take 3 years to install the lines in his office. Although for a “certain” price, he had added, the lines could be operational in two weeks (Bodrock, 2005). Even as the picture of widespread bribery in Ukraine became obvious, Zhuk still did not want to disengage (Bodrock, 2005).

Being of Ukrainian descent, it was his desire to help modernize the country. Such as, he paid his programmers a higher salary than that of any local company of similarity (Bodrock, 2005). He hoped to improve their living standards, by means of, affording three meals a day without having to bargain or wait in line for hand-outs. And yet, he wasn't sure he could continue to compromise his principles for the sake of the greater good (Bodrock, 2005). Should Customer Strategy Solutions payoff the Ukrainian tax officials?

That is tough to answer. On one hand, I know that Zhuk, a patriot, will pay-off the tax officials and continue with his pet…...

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