AES: Hungarian Project (A)

The AES Corp., the world's largest independent power producer, has put out a request for bids to build a new power plant in Hungary. Just after the closing date for submitting bids, one of the contractors calls to request an opportunity to "improve" its bid. Although AES has not yet completed its analysis, this contractor appeared to be the low bidder. What should the coordinator do? This decision is one of several faced by AES as it attempts to do business in post-socialist Hungary. This case also explores AES's distinctive approach to downsizing the workforce at the power plants it purchased there. Teaching purpose: To explore how AES implements its values and ethical standards in a post-Communist context.