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Question 1The Consolidated Mines International Inc operated in Central America and northern South America where terrorism has been a complicated issue for a long time The existence of terrorist organizations in Latin America has its own historical political and social reasons Historical Reason Several unproved allegations were accused in the history such as bribing government officials participating in the overthrow of government exploiting the employees polluting the environment and facilitating the importation of cocaine into US Although none of them has been proven in the court the company spent lots of time fighting legal troubles Political Reason There was no effective government in many of the countries in which the mines operated The paramilitary controlled the areas and involved in a series of violations activities such as massacre assassination and kidnapping Social Reason The terrorist organizations tried to brainwash peoples thoughts by declaring the protection money can ensure the safety of the company In order to protect the Latin American employees and operations the CMI paid about 17 million in ten years to United Peoples Liberation Front and listed the terrorism payment as security service In fact no security services were provided by the terrorists in exchange of payments There were no invoices but only cash payment to the terrorism without any trace It was illegal to pay terrorist payment to United People Liberation Front By facing several unethical dilemmas in business practices Alex should not join the Board of directors of Consolidated Mines International IncQuestion2The mines were operated in Latin America The revenues were huge and the employees worked there were valuable assets for the company Although the CMI didnt want to support drug trafficking and terrorism when CMI was facing with the choice between paying protection and having their properties torched and the employees murdered it made the choice to pay the terrorist payment for the safety of employees and operationsBut paying terrorist payment was not profitable illegal unfair unethical and not providing
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