Sunday, March 10, 2019
Ethical Issues Essay
Researchers found that 10 percent of employees at all levels report spot pressured to compromise honest standards in the cypherplace (Managing Business Ethics by Trevino and Nelson 2007). Ethical restorations are faced by ever soy industry in the product line world as rise as communities, unrestricted and occult organizations and individuals. Leadership, internal practices, and training may impact the proper implementation of clientele ethics. Halliburton is one of the many large corporations twisting in unethical business practices.This paper examines ethical issues faced by public sector employees and employees of underground sector firms that conduct business with and for governing agencies. The paper discusses Halliburton, a U. S. defensive measure contractor ( origin vice president Dick Cheneys old firm), ethical issues and the impact on stakeholders involved. The goal is to highlight the ethical issues and make recommendations for how potency employees and manag ers net handle similar situations. BackgroundSince 2001, energy service family Halliburton and its origin subordinate word Kellogg Brown & Root (KBR) become performed unspecified services to the United States phalanx in Iraq, Kuwait, and several other countries under a no-bid, long-term global logistics contract, (LOGCAP). In February 2003, Halliburton received a five-year extension, $7 jillion no-bid contract for services in Iraq. During the course of awarding and executing these contracts at least two people made the decision to become tin pennywhistle blowers, a government activity employee, and a Halliburton/KBR procural employee.The government employee disclosed that Halliburton/KBR was involved in closed-door meetings with the Army Corps of Engineers that resulted in the no-bid, multi-year, billion dollar contract awarded exclusively to Halliburton/KBR (Morning Edition October 29, 2004). The procurement employee disclosed the specific activities at bottom Halliburto n/KBR that resulted in overcharging the government and taxpayers for goods and services while simultaneously eliminating competition among potential vendors.Some allegations include soliciting higher priced products and services because the government pays a slant based on the total of goods/services procured and manipulating purchases orders to maintain a upper limit of $2,500 to avoid the bidding process in the midst of prospective vendors. Specifically, Halliburtons subsidiary Kellogg, Brown & Root hired a Kuwaiti company, Altanmia, to supply terminate at about twice the going rate, then added a markup, for an cabbage of at least $61 million, according to a December 2003 Pentagon audit. The exclusively problem is that $61 million is taxpayer money. Perception of Unethical Practices of Dick CheneyFrom the branch many American citizens raised an eyebrow towards the decision to have Halliburton as a U. S exculpation contractor. This public outrage stemmed from the reason vic e presidents former employment as the tribal chief executive officer (CEO) of Halliburton from 1995 through August 2000. KBR, the companys former subsidiary has been the main government contractor working to restore Iraqs oil industry that was awarded without competitive bidding in 2001. According to Cheneys 2001 financial disclosure report, the vice presidents Halliburton benefits included collar batches of stock options comprising 433,333 shares.He also has a 401(k) retirement account determine at between $1,001 and $15,000 dollars. His deferred compensation account was taxd at between $500,000 and $1 million, and generated income of $50,000 to $100,000. Halliburton has contracts worth more than $1. 7 billion for its work in Iraq, and it could make hundreds of millions more from a no-bid contract. During Cheneys tenure as the defense privateary, the Pentagon chose Halliburtons subsidiary KBR to study the cost effectiveness of outsourcing some military operations to private con tractors.Based on the results of the study, the Pentagon hired KBR to implement an outsourcing devise (Washington Post Sep 26, 2003). Many companies like Bechtel, Exxon, Blackwater and Halliburton have profited from the Iraq war. It is no secret that war creates wealth for those companies canny enough to exploit it, and not be killed by it. Is Dick Cheney one of these? After his departure from office former vice president Cheney will be free to profit in whatever way he feels. The ethical question is, however, has he ever really left it?And by not leaving it, was he in ethical violation of his oath of office, at the very least? Stakeholders The stakeholders in this situation are the client, which is the U. S. government and American taxpayers who are the investors or funders of the government the vendors, who through the bidding process maintain a competitive and profitable business environment and employees who make sure that their employers receive the best value for the services and products they procure. Ethical predicaments The first ethical dilemmas is if employees should bring wrongdoing to the step to the fore and if so, how?Will the decision violate the privacy of vendors or other employees? Is it lawful to disclose certain activities cited to defense contracts? Secondary ethical issues relate directly to the stakeholders. Is the U. S. government unfairly awarding contracts? Is that awarding process facilitating a culture of overcharging, which is absorbed by U. S. taxpayers? Are vendors intentionally overcharging Halliburton/KBR? Are Halliburton/KBRs procurement practices eliminating competition in the marketplace? Analysis The primary issue in this situation is whistle blowing.Whistle blowing means calling anxiety to wrongdoing that is occurring within an organization. (Nadler and Schulman 2006) Halliburton is still under investigation by the FBI. mayhap the negative publicity and the case caused the contract to be divided with Halliburton sw eet one of the parts in a public bid. The underlying alternative issues include exposing potentially posticheulent business activities, financial irresponsibility, and illegally profiting from public funding. The government employee wrote and spoke to superiors about the activities.The government employee sought legal apprise upon deciding to go public with their disclosure. Finally, both made their testimonies to the proper canvas bodies including the FBI, the U. S. House of Representatives Committees on Government Reform and Energy and Commerce. For their troubles, the government employee and Halliburton/KBR procurement employee were forced into a whistle-blowers protection program. Conclusion In the public sector, whistle blowers are often faced with the dilemma that their choice to disclose can constitute a criminal act.In both cases these employees called attention to surmise activities within their organizations in the first place going outside or public. Employees faced with this dilemma must identify the stakeholders and ethical issues that concern them, and then make cipher decision whether or not to disclose. The facts surrounding whether or not the U. S. government are unfairly awarding contracts will be an ongoing issue. patronage all the measures set forth to regulate the procurement of contracts, greed for money will play a critical factor for the people that have weak ethical character.Whether you are the employee or employer being the standard letter carrier in ethical situations will earn the respect of others as well as keeping you out of big trouble.ReferencesAnalysis FBI investigates whether Pentagon officials committed fraud in their handling of a no-bid contract to a subsidiary of Halliburton before the Iraq War. (1000-1100 AM)(Broadcast transcript). (Oct 29, 2004). Morning Edition, p. NA. Retrieved February 08, 2009, from General OneFile via Gale. Donahue, J. (Nov-Dec 2005). Treading on the taxpayer. Multinational Monitor, 26, 11 -12.p. 7(2).Retrieved February 08, 2009, from General OneFile via Gale. Nadler, J. & Schulman, M. Whistle Blowing in the Public Sector. Santa Clara University Markkula Center for Applied Ethics. Retrieved February 9, 2008, from http//www. scu. edu/ethics/practicing/f ocusareas/government_ethics/introductio n/whistleblowing. html. visibility US Army will allow bidding for contract work in Iraq initially given to Halliburton. (1000-1100 AM)(Broadcast transcript). (Sept 8, 2004). Morning Edition, p. NA. Retrieved February 08, 2009, from General OneFile via Gale.