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Supplement
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Reference no. 9-393-023
Published by: Harvard Business Publishing
Originally published in: 1992
Version: 17 August 2004

Abstract

The president of one of Martin Marietta's four main operating companies has learned of procurement irregularities in the company he manages. The problems involve US government contracts the company is working on. After getting legal advice from the company's general counsel, the president must decide whether to disclose the irregularities to the US government. Permits students to consider how managers should react if they learn about potential wrong-doing in their companies. Asks students to consider whether a policy of openness and disclosure should be generally favored and how such a policy should be applied.
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Abstract

The president of one of Martin Marietta's four main operating companies has learned of procurement irregularities in the company he manages. The problems involve US government contracts the company is working on. After getting legal advice from the company's general counsel, the president must decide whether to disclose the irregularities to the US government. Permits students to consider how managers should react if they learn about potential wrong-doing in their companies. Asks students to consider whether a policy of openness and disclosure should be generally favored and how such a policy should be applied.

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