The CIMIC Groups Ethical Standards - Case Study Example

Responses Name Course Instructors Name Institution Affiliation Location Date Introduction Success of an organization is recognized with good ethical standards. Ethical standards are set of principles to be compiled with all public sector employees concerning the organization culture (Audi, 2009). Ethical standards consist of honesty, personal integrity, accountability, caring, loyalty and relationship with others in the work. Every organization has its own culture which enhanced to its productivity and success. A company can also be against its own ethical standards due to corruption in the business. Corruption being abuse of public office for private or personal gain hinders many organization and governmental sector due to greedy on money and distorting subsidies for their own gain (Cavusgil et. Al 2014). This paper responds to three questions regarding ethical standards, possible actions CIMIC Group need to take to restore its reputation and continue performing as an ethical corporate player both locally and internationally and finally is about Australia needs to overhaul its anti-corruption law to make MNCs more ethically compliant and responsible. The CIMIC Group’s ethical standard based on article 1 The following are the ethical standards evaluated from the Leighton Holdings linked to ‘corrupt’ fees for Iraq pipeline contracts. Honesty. According to the Leighton Holdings on the link to ‘corrupt’ fees for Iraq pipeline contracts, both the companies lack honesty to their people and the nation(Audi, 2009). The stake holders of Leighton Holdings and Unaoil Company hide the truths and make their own lawyers to sign the files regarding the corrupt fees of pipeline oil. By availing false information in the court, Leighton Holdings portrays a negative picture towards their customers and also to their employees. Integrity as also been practiced in the linked ‘corrupt’ fees for Iraq pipeline contract (Scholtens and Dam, 2007). Despise the Leighton Holdings denied the corrupt pipeline contract and hide the findings and the documents for a long time, the external lawyers finally had all the information regarding the Leighton case on pipeline contract in the Iraq which made Leighton to report the action in the police before the external lawyers took the possible action (Rehse, 2005). Leighton practiced integrity by reporting the action to the police making them to be aware of the deal made with Unaoil Company together with the Iraq government. Keeping promises is an ethical standard for every organization which enhanced success in a firm. In Leighton Holdings on corrupt fee pipeline contract, the company itself did not kept promise concerning the deal made with the Unaoil Company about the pipeline contract. Leighton rejected the agreement made by Unaoil claiming the memorandum of agreement between them is vague and undefined (Tähtinen and Vaaland, 2006). Every organization should portray loyalty to the company, employees, contractors, investors and to their customers since loyalty is the key to success to the organization. In Leighton Holdings case on corruption, they tried and respect loyalty across the company by involving the stakeholders in the deal made with the Iraq government concerning the pipeline contract (Seddon, 2009). The stakeholders obeyed the law made and make it as a company secret without revealing or discussed it outside the company. For the company to succeed, loyalty should be maintained and practiced across the organization. Fair and just is another ethical standard a business should practice. Leighton Holdings tried to be fair and just on the corruption deal between the Unaoil Company and the Iraq government (Audi, 2009). Leighton made a payment of marketing fee to Unaoil according to their terms and agreement and further agreed to add the market fee to certain percentage according to the money received from the Iraq government. The Leighton Holdings maintained the fair and just ethics with the Unaoil Company to withhold their relationship. Leighton Holdings practiced accountability on the pipeline contract deal. This happen when the former Leighton chief executive Mr. king said that despite of him being involved in the Iraq contract and excluding himself in second Iraq contract he continue explains about the offshore Leighton oversaw in the Iraq contract together with the memorandum of agreement made between the Leighton and Unaoil. In Leighton Holdings pertaining corruption fee in the pipeline contract, police and external lawyers show morale when dealing with the Leighton case. Police were investigating the matter with an extent of preventing Leighton from answering any question in the court (Duruigbo, 2005). The sense of morale practiced by the external lawyers is investigating Leighton Holdings case from their files. Leighton show respect on the pipeline contract by adhered to the Iraq government law (Cavusgil et. Al 2013). He also respected the agreement made with Unaoil Company in securing the Iraq contract. Leighton aim was to increase the productivity of the organization and also to make profit for the success of the organization. He further went to an extent of disobeying the value of respect by going against their customers and lack trust to them. The virtue of respect should be practiced for the organization success and also it holds trust between the firm and the consumers. In Leighton Holdings case linked to ‘corrupt’ fees for Iraq, Leighton promotes the virtue of caring by reporting the incidence to the police and makes it known to the public. Caring is also revealed in British High Court of Justice when revealing the Leighton files and found the fees was contained in deals of memorandum of agreements and the deal was struck between Leighton Holdings and the Unaoil Company with their aim being securing the pipeline contracts(Davidson et. Al 2006). Possible actions CIMIC Group need to take to restore its reputation and continue performing as an ethical corporate player both locally and internationally Take the heat (leader first). In a company, Chief Executive Officer always serves in a higher position compare to any other employee in the firm. The role of CEOs is to receive the credit on good things happening in the company and also to accept the blame concerning bad things within the company (Fisher and Lovell, 2009). For a CIMIC Group to restore its reputation, the CEO should accept the factors hinders the company and take the role on reposition the firm with the help of the stakeholders. Communicate tirelessly. Communication is the key of reputation in a business especially at a time of crisis. CIMIC Group CEO together with the employees of the firm needs to communicate tirelessly about their company, giving examples on how the company performs when comes to marketing, about the skilled employees they had and how the company satisfies their customers (Claeys et. Al 2010). With communication, CIMIC Group will restore its reputation and continue performs as an ethical corporate player both locally and internationally. A company should not understand their critics and competitors for the success of their reputation. CIMIC Group should adhere to the company rule and only understands an employee point of views or any other person working within the firm. They should not understand their critics and competitors since they are people who are against the company success and underrates the company vision concerning the crisis they encounter (Gaines-Ross,2008). Reset the company clock. CIMIC Group needs to reset their clock and featuring on company reputation. Reset the company clock means, the company should focus on the company ways back to success and focus less on things made them to go on crisis. The CIMIC group should focus on their ways to success regarding the crisis they are undergoing and also to be loyal to their customers(Gaines-Ross,2008). By reset the company clock and practiced the virtue of loyalty will restore their reputation and make them to continue performing as an ethical corporate player both locally and internationally. Analyze what went wrong and right. Immediately after the CIMIC Group problems or crisis comes to an end, the company should analyze what went wrong before and during the time of crisis by having a meeting with employees and teams working in the company. The company meeting should portrays on what went wrong and right by studying each person mistakes and highlighting ways a company can avoid the same problems when encountered with it (Scholtens and Dam 2007). Measure the company track. Once the company loss its reputation, measuring its track should the next step. CIMIC Group should measure its track to ensure the company is moving towards the right direction(Gaines-Ross,2008 ). Measuring the company tract entails benchmarking, empowered employees with the required skills, and ensuring there is time management within the company. This will enhance CIMIC Group to restore its reputation. Right the culture. For the success of the reputation, a company should have the right culture which coincides with its productivity. For CIMIC Group to restore its reputation, they should hire the right employees and make sure there is comfortable environment to both the employees and the customers and also to ensure the leaders practiced fair and just to all members of the company (Gaines-Ross,2008). Seize the shift. Company needs to understand its climate for the better reputation. CIMIC Group should understand how frequently crisis occurs in their company and how they have managed to solve it. The leaders should mark the period of the crisis on the organization calendar and note crisis can shift from time to time, so they should be ready at every point to encounter any new problems hindering their success (Nwabuzor, 2005). CIMIC Group will restore its reputation and continue performing as an ethical corporate player both locally and internationally when practices seize the shift. Brave the media. This is one of the reputation processes a firm should exercise. CIMIC Group should brave the media on the journey of reforming back their business. Braving the media is done purposely to bring back their customers and to ensure their service meet customer satisfaction(Gaines-Ross,2008). CIMIC Group should use their websites, blogs, YouTube and any other source to advertise their company products and success to their customers. Minimize reputation risk. Company should minimize their reputation risk for the success of their business. CIMIC Group leaders should minimize their reputation risk by anticipating any form of threat in the company, analyzing trends leading to threats or any opportunity in the company and online reporting of any form of risk to reputation and for strategic involvement of senior management(Gaines-Ross,2008). Does Australia need to overhaul its anti-corruption law to make MNCs more ethically compliant and responsible? Australia should overhaul its anti-corruption law to make MNCs more ethically compliant and responsible due to the following reasons. The Australian government should establish a broad-based federal Anti-Corruption Agency (Seddon, 2009). This is an element of enhancing multi-agency strategy which ensure a best approach has been made in emerging corruption risk and effective anti-corruption against the federal and supporting the parliament integrity act. Missing legal definition of corruption should be overhauled by Australia government (McAllister, 2014). Australian and the senate parliament should clearly overhaul the legal definition of corruption before overhauling their anti-corruption. They should understand and make the definition more comprehensive and simpler to the public. Legal definition of corruption will overhaul Australia anti-corruption law and make MNCs more ethically compliant and responsible. There are growing differences in the powers available to Anti-Corruption Agencies (ACAs). ACAs in Australia being denied there power in conducting public hearings due to formation of several agencies which satisfy the government needs (Mungiu, 2006). For Australia to overhaul its anti- corruption law, the government should agree and implement principles regarding powers and accountabilities towards Anti-Corruption Agencies in order to make MNCs more ethically compliant and responsible. Australia to overhaul its anti-corruption law, there should be a transparency and openness in government spending. Taxes collected from the public and any other foreign aid should be used to promote public interest and for the development of the country success and production. Transparency and openness in the government spending is away to combat corruption by promoting fair and justice in the country. Thus results in making MNCs more ethically compliant and responsible (Bertot et. Al 2010). Another way Australia needs to overhauls its anti-corruption law is by establishing international conventions. This is an international team promoting anti-corruption act by ensuring the governmental bodies are fighting corruption and they are not conducting any form of injustice to public (1Jong-Sung and Khagram, 2005). International convention also helps in making MNCs to be more ethical compliant and responsible in Australia. Deploy smart technology in the Australia government. With various technologies in the internet, government should avoid any form of direct contract between the government official and citizen since it created opportunities for corruption in the government sector (Crane and Matten, 2016). Government are advised to use online platform since it is a recommended tool in giving transparency and accuracy way in serving the country and organizations and also is a tool that fights corruption. Deploying of smart technology in Australia will overhaul its anti-corruption law and makes MNCs more ethically compliant and responsible (Bowman and Gilligan, 2007). Civil servants are sometimes involved in corruption t due to the low wages from the government (Boyle and McDonnell, 2013). Employees’ low wages results seem to be indulged in an illegal activity on getting away with the government resources. For accountability, government should ensure there is uniform transparency across the civil servants and satisfaction in their wages (Peetz and Preston, 2009). Paying civil servants well is a form of fighting corruption in the Australian government and also a way to overhaul its anti-corruption law. Replacing regressive and distorting subsidies with targeted cash transfers is another way Australia government should use to minimize corruption in the government sector. Replacing regressive and distorting subsidies creates opportunity for corruption, government should replace subsidies with targeted cash to promote transparency in the governmental sector and also it is a form to overhaul the anti-corruption in the country (Barjot, 2013). Conclusion From the discussion, it is clear that the paper has respond to three questions and it is seen that for an organization to success ethical standards should be obeyed and practiced according to the organization culture. The paper also supports the argument on the need of Australia government to overhaul its anti-corruption law and to make MNCs more ethically compliant and responsible. References list Audi, R., 2009. Business ethics and ethical business (p. 21). New York: Oxford University Press. Barjot, D., 2013. " Why was the world construction industry dominated by European leaders?" The development of the largest European firms from the late 19 th to the early 21 st centuries. 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