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What Are the Corporations' Ethical Dilemmas - Case Study Example

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The paper “What Are the Corporations' Ethical Dilemmas” explores certain cases (e.g., LM’s headhunting of a specialist with secret business papers) which demonstrate a lack of ethical values in some corporations unlike other brands (e.g. Motorola) which succeed due to their unaltered principles…
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What Are the Corporations Ethical Dilemmas
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Download file to see previous pages In 1997 McDonnell Douglas hired an engineer away from LM who carried with him all proprietary documents. Later that year McDonnell Douglas merged with Being, rivals to LM and in 2005 LM and Boeing decided to merge their space-rocket business and came into an agreement to drop their litigation over the stolen rocket-contract information (Seattle Times, 2006). This was the general trend at LM which demonstrates a lack of any ethical values or culture.
Due to its inefficient ethical standards, LM came into serious controversies from different organizations and different groups of people. The US Department of Defense (DOD) and its contractors had an inter-agency battle over regulating perchlorate level as its military dumpsites and contaminate the public drinking water (Saas, 2004). The Perchlorate Study Group (PSG) submitted a report to the EPA stating that the perchlorate level was within permissible limits but it was rejected by EPA. The Chairman of PSG is an employee of Aerojet of which LM is a member. In 2002 as EPA recommended a stricter limit, LM issued a notification that they would assist in determining the cleanup obligations of the EPA. While LM was still ramping up its scientific defense, the Cocopah Indian tribe complained to the EPA that the ppb limit in the water was not sufficient to protect the nursing and pregnant mothers and the teenagers who worked in the paddy field. It was later revealed that two panelists of the National Academy of Sciences (NAS) had close ties with LM who underplayed the health impact of the perchlorate level in the water. Another paid consultant presented his epidemiologic findings without disclosing his financial relationship with LM. All of these scientists presented themselves as independent scientists but were under the watchful eye of their client. This led to pressure from the public.
There were two defense scandals and breaches of export laws. They could be barred from defense contracts and denied export licenses for both military and commercial sales. There was a public cry against the lobbying firms, law firms, and defense contractors. This is known as the “iron triangle” in Washington. The officials in the DOD have been former employees of the defense contractors. The members of Congress are handsomely paid lobbyists all working for defense contractors. The ex-vice president for strategy and planning of LM became responsible for the foreign policy platform which was responsible for the dramatic increase in defense spending. While he was the vice-president at LM, he also served as the president of the US committee to expand NATO, a nongovernmental pressure group. There has been an allegation that after Bush came to power, LM’s revenues soared up by 30% and it was awarded $17 billion on contracts from the DOD. Whatever is the rationale for the invasion of Iraq, business for LM soared to unprecedented heights as all lobbyists, law firms and consultants shared a common link with LM.
LM’s interests were in direct conflict with those of the American citizenry. With so much of exposure and pressure from all fronts, LM decided to initiative ethical practice and developed programs. ...Download file to see next pagesRead More
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