BAE SYSTEMS

BAe Systems Case Study

BAe Systems Case Study (In Total Word Count- 1730)

Task 1: (517 words)

Laudable Decisions:

Analysing timeline of events taking place regarding BAe Systems (BAES) one can apply The Institute of Business Ethics Framework as a Good practice guide for Ethics in decision-making. The Framework enables to categorize decisions into laudable, culpable and non-culpable. UK government's Foreign Secretary Mr Robin Cook's decision to promote an ethical foreign policy in 1997 is a laudable decision, as this promotes the role of Government as caretaker and provider of selfless and unbiased service to its citizens.

In June 2009 OECD's assertion of criticizing the UK government for halting SFO's Al-Yamamah inquiry is ethically a laudable decision because corrupt business practices cannot be allowed by making national security threat as excuse.

Culpable Decisions:

The conduct of the CEO of BAES in 1997 was culpable as it colluded with Premiership candidate Tony Blair and had vested corporate interests in his success; therefore he bucked him up in pursuit of maximization of BAES profits and corporate benefits.

Tanzanian President in 2005 seems ignorant when he said that no one showed him evidence of wrongdoing taking place in civil procurements as mentioned by World Bank. President has active government machinery that acts as eyes and years of the state. This decision is culpable as President's government could not make proper and efficient use of public funds by spending four times more on civilian radar.

In the Al-Yamamah contract case in February 2007 reveals role of UK Defence Minister Jonathan Aitken as negotiator and lubricator in making deal between BAES and the other party. Defense Minister's role is as public representative and servant, therefore he cannot take part in patching up commercial deals between corporate entities. His decision to act as negotiator in this contract is culpable.

Non-Culpable Decisions:

In 2004 Attorney-General Lord Goldsmith's decision to discontinue Serious Fraud Office (SFO) inquiry of BAES's alleged slush funds is a non-culpable decision because of the potential national security threat present at that time and lack of sufficient evidence of corruption available. It cannot be termed as laudable ethical decision because it is the duty of the state to find evidence and facts during such forensic investigations.

In February 2007 BAES CEO Mike Turner's statement is ethically non-culpable because he is trying to protect his company's interests, and at the same time breaching the fundamental ethical principles of professional behaviour and sceptical attitude. He is assumed to be aware of previous developments regarding BAES, that is, the allegations and charges on BAES, because national interest cannot be sacrificed to safeguard a private company's reputation.

Ranking Culpable Decisions:

In 1997 BAES CEO violated the principles of integrity and objectivity by supporting Prime Minister Candidate Tony Blair. His support was subjective as he had stakes on his becoming country Premier. In ethical perspective this decision ranks as high level culpable decision.

In February 2007 UK Defence Minister Mr Jonathan Aitken's role in acting as negotiator in Al-Yamamah contract is a high level culpable act as his conduct is serious breach of ...