Capability Catalogues
Case studies
The following cases and questions presented by INTSOK illustrate examples of situations and dilemmas that can be used to develop and clarify company policies on anti-corruption and can also be a starting point for internal workshops and dilemma training in your company. The following case studies outlined situations that could have personal and professional consequences if handled in a non-professional way.
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Agents
15.02.09
Case study
A Norwegian company intends to expand its business to markets outside of Europe, where it has conducted oil- and gas related deliveries for about 10 years. Recently, the company was contacted by a person from the Middle East with an office in London. This person offers to help the company to gain business relations in parts of the Middle East due to his excellent network of business contacts. Furthermore, he provides a list of references, but due to temporary illness in the Norwegian company it was never examined. The Norwegian company sets up a simple contract with the agent's company, agreeing on a success fee rate and that all relevant expenses of the agent shall be covered. There are no specific descriptions or limitations for the expenses.
After a while the company succeeds in signing a business contract with a company from the Middle East due to the agent's contacts and he sends an invoice for his consultancy work. The invoice is issued by a company on the Virgin Islands, but the agent explains that it is his company and that this is the normal way of invoicing. In addition to the agreed success fee rate (5 % of the annual contractual value) the invoice also includes an unspecified high amount of expenses. Upon request he explains that this is due to lobbying and related activities for the actual contract.
Based on the INTSOK Anti-Corruption Policy, is it OK to honour the contract? -
Background check
15.02.09
A minor oil company wants to recruit a new logistics- and purchase manager. They have several applicants for the position, but especially one person with substantial credentials and experience is of interest. This person is appointed also on recommandation from the external recruitment advisor. After some weeks, hersay is telling that this manager has been convicted once for fraudulent practice some years ago, including taking part in a minor corruption affair. Some discrete enquiries verifies this information and also that the personal economy is questionable.What can you do in a matter like this, and what should be done in the recruiting process?
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Conflict of interest
15.02.09
Who would you choose? And how will you handle this possible conflict of interests?Your company is on of several partners in a JV. One of the local partners is insisting having his nephew as a CFO in the JV. The actual person has not a very long record in energy finance, but he is young and amitious. He also holds a minor part in one of the smaller local companies in the JV, and has a lot of other business interests in the local area.
Your candidate for the CFO directorship is an old business friend, but you have recently heard he has had some troubles with some of his private investments.The INTSOK Code of Coduct
Economic or other interests in companies and businesses that may be regarded as creating conflict of interest situations shall be reported in writing to the Managing Director for approval. -
Gifts and invitations
15.02.09
A case studyYou are negotiating a major contract with a potential business-partner – a contract which will determine the existence of your company for the next three years. However, the negotiations are at a standstill, due to some differences. One day you receive an invitation to the wedding of that business-associate’s daughter. The wedding, which includes a series of pleasurable events over a long-weekend, is paid for by the host except for accommodation. The business-associate has enclosed a note to the invitation where he explains he is hoping to see you and wants to get to know you better in order to establish an open discussion also including some of the business topics.
The INTSOK Anti-Corruption Policy:INTSOK does not accept giving or receiving gifts or other advantages that are aimed at influencing or promoting decisions in any improper way.
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Success fees
15.02.09
A case study
An international company wants to establish an oil supplier company in Brazil, and they ask INTSOK to help them in achieving this. INTSOK presents them to two local agents, one lawyer and one senior businessman. They both claim to have excellent connections to the local authorities, which is an important purpose for the hiring of the agent. The businessman can even tell that he can provide local inspectors which will give a solid evaluation of actual prospects. The businessman is hired by the INTSOK Partner without a formal or written contract, just an e-mail accepting the hourly rates and with a 5 % success fee for finalizing the project. The invoice from the businessman is coming from a company on the Virgin Islands, but he explains this is just for practical reasons, including tax advantages.
The INTSOK Anti-Corruption PolicyAll agreements with advisors and consultants shall be made in writing, and the agreement shall always describe the real relationship between the parties. INTSOK requires all advisors and consultants to act according to the Code of Conduct and this Anti-Corruption Policy. The Code of Conduct and Anti-Corruption Policy shall be included as part of the agreement. -
Whistleblowing
15.02.09
A controversial scientist is publically – to a newspaper - telling that he suspects there has been possible corruption regarding the use of an agent, a local intermedian in a arabic speaking country. He has informed his superiors about these suspicions, but the superiors has in his opinion not followed up in an adequate way. The scientist has no water proof evidence, but the actual agreement is ”odd” and is based on Transparecys Corruption Index in a corrupt business environment.