Corporate and Professional Ethics

Topics: Business ethics, Ethics, Foreign Corrupt Practices Act Pages: 6 (1880 words) Published: December 13, 2012
The Hallmark of Leaders at All Levels
Phase V Individual Project
Robin Tolbert
November 12, 2012
University of Colorado Technical Online
Educationalist Russell Fail

Corporate and Professional Ethics

Part I. Classify the Ethical Issue
Kellogg, Brown and Root (KBR) Charged with Suborning Nigerian Governmental Officials to Acquire Contracts. As early as the 1900 KBR began their business quest. The renowned KBR is ranked as one of the world largest top performance engineering and construction industries. Their employee is base way over twenty seven thousand. They exist in forty five countries and five continents. KBR prestige status has impacted the energy and petrochemical, government and civil infrastructure in a prominent manner. However, a cloud over shadows the fame of this mega empire: bribery of Nigerian government officials. It began in 2007 with its parent organization Halliburton. Halliburton was under investigation for unethical business practice in the Iraq War. In 2009 KBR was under investigation for unethical business practice in Nigeria. Later the CEO of KBR was found guilty of bribery charges. The charges stem from bribery of Nigerian Governmental Officials in the amount of tens of millions of dollars to obtain contracts (CNN, 2009). The Impact that Bribing Government Officials to obtain Contract have on Interested Parties. For a very long time corruption has existed among government officials. Unless government can find an effective way to combat it, it will continue to exist in the future. This type of ill behavior date back as 30 plus years to seminal contribution on what economist call related empirical work quantifying the extent of corruption and putting a dollar sign on its economic effect has been limited. Of course this is not surprising because most corruption is clandestine. It is not an exact science of the efficiency of the government. Fair meager of measuring the consequences of a notoriously corruption is hard for an Empirical Economic. However a corporation such as KBR can risk some major components such as Company Reputation, Employees Trust in Corporate Officials, Future Stability, and Stakeholders Disposition. Company Reputation

The result of bribery on companies can result in needless inflation of employee ranks and thus greater operational inefficiency. It also can lead to less desired business climate. At a national level the country’s reputation is tainted as well. A poor ethical reputation results in reduction in foreign investment, decreased in tourism and loss of top talent to other countries (Expert in Responsible Solutions, 2012). Employees Trust in Corporate Officials

Employee trust level in officials after bribery diminishes. This has the potential to cause a dilemma in retention, respect and expansion. As the erosion of trust exist, it breakdown the social order to conduct good business. The atmosphere for future contracts has a haze over it as it violates the fabric of communities (People WKU, 2005). Future Stability of Company

Bribery of this caliber consumes firm’s financial capital and inhibits economic expansion. KBR and other companies cost of doing business increases as a direct result from bribery. As a whole, Bribes by firms to government official have a negative effect on Company progression. Stakeholders Disposition

Bribery carries noteworthy repercussions for the investors of establishments and compromises profile of investment portfolios. Company such as KBR involvement in bribery risks large expenditures affecting financial performance and impaired access to finance and capital markets (Expert in Responsible Solutions, 2012). Part II Business Code of Ethics

KBR Code of Ethics needs an overhaul or need reinforcing in the way they conduct business. The code of conduct serves as a compass for how decisions are made and how they should conduct business in a professional, fairly and legal manner. This manner should incorporate as...
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