Ethics and Govermance

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Ethics and Governance

“A CASE STUDY ABOUT BAES AND SFO”

Module Code: SM 0378

Student Number: 11029088
Date: 11 Jan 2012
Word Count
Task 1: 497 words
Task 2: 587 words
Task 3: 523 words
Task 4: 549 words
Total: 2,156 words

Table of Contents
Task 1:3
1.1 Laudable Decisions:3
1.2 Culpable Decisions:3
1.3 Non-Culpable Decisions:4
1.4 Ranking Culpable Decisions:4
Task 2:4
Task 3:6
Task 4:7
4.1 Weaknesses of normative constrain7
4.2 Weaknesses of external constrains8
References:10

Task 1:
1.1 Laudable Decisions:
With analyzing timeline of events that take place related BAE System (BAES), to have a good practice guide for ethics in making decision; one can apply the Institute of Business Ethics Framework. With this Framework, it will allow to categorize decisions into culpable and non-culpable or laudable. According scenario, UK government’s Foreign Secretary, Mr. Robin Cook had a decision about promoting an ethical foreign policy in 1997. It is a laudable decision. This promotes very much the role of government in providing a good and fair service to citizens. Moreover, in 14 June 2009, OECD's assertion criticized UK government for halting SFO's Al-Yamamah inquiry. It can be seen as a laudable decision because corrupt practice may not ensure the national security. 1.2 Culpable Decisions:

In 1997, conducting of CEO of BAES viewed as culpable because he colluded with premiership candidate of Tony Blair. Then, he had vested all corporate interests for them in his success. So, this proved that he shift responsibility onto someone else in pursuit of maximization of BAES profits as well as corporate benefits. In 2005, the decision of president's government viewed is culpable because he can't use proper and efficient public funds while spending four times more on civilian radar. However, Tanzania President said that no one showed him about evidence of wrongdoing that occur in civil procurements as mentioned from World Bank. This gives to see that President has active government machinery that acts of it as eyes and years of the state. In February 2007, with the Al-Yamamah contract in making deal between BAES and the other party, it show clearly to role of UK Defence Minister Jonathan Aitken in negotiator and lubricator. Role of him is as public representative and servant. So, he can't participate patching up commercial deals between corporate entities. 1.3 Non-Culpable Decisions:

In 2004, because the potential national security threat that present at that time, it is lack full evidence of corruption available. So, decision of Attorney-General Lord Goldsmith in discontinues Serious Fraud Office (SFO) inquiry of BAES's alleged slush funds is a non-culpable decision. Besides, because this is the duty of the state in finding evidence as well as facts during forensic investigations, it also can't be called as laudable ethical. 1.4 Ranking Culpable Decisions:

In 1997, BAES CEO support Prime Minister Candidate Tony Blair, then, he had stakes on his becoming country Premier. With this support, it was subjective and violated particularly serious about the principles of integrity and objectivity. With ethical perspective, this decision ranks at high level of culpable decision. Also in February 2007, as we know that the main role of UK Defence Minister Mr Jonathan Aitken is a public representative. And according ethically, it prevents him from taking part or dealing in back-door commercial deals between corporate entities. However, he takes part in negotiator of Al-Yamamah contract. This viewed as a high level culpable act as well as his conduct is serious breach about his position. Task 2:

According Dijk & Zeelenberg (2002), outcome-related disappointment is the disappointment that outcomes don't meet the target as well as expectation. At this outcome, relationship-related/ personal only occur when someone that lets us down. Compared with expected, results from the interaction...
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