Implementation of the code of conduct at ECG has been a success. Employees are engaged in the training sessions and have been carefully reviewing the detailed code of conduct available on the ECG intranet. Furthermore, you are regularly being consulted by various individuals regarding situations that represent or could potentially have ethical implications. Now the Ethics Review Committee has convened another meeting to discuss two matters that have been reported, as defined in the following:
The intended acquisition of Government Allies, Inc. after the IPO represents a tremendous growth opportunity for ECG. As the company completes due diligence on the acquisition candidate, it is discovered that a senior executive at ECG and her spouse have a previously undisclosed financial interest in Government Allies. This executive will notably profit from the acquisition because all investors in Government Allies will receive shares of ECG stock proportionate to their investment upon successful completion of the IPO and of the acquisition. The ECG executive had been a member of a task force charged with determining acquisition candidates, and she was a strong advocate for moving forward with the effort.
ECG is participating in a competitive bid on a lucrative IT consulting contract for X TelCo, a key player in the communications industry. A team of industry and practice leaders is formed to develop the proposal and give the presentation to X TelCo. Securing the contract would boost sales and positively influence the IPO. One team member previously worked in the industry with two current executives at X TelCo who are among those to review bids. Initially unknown to the ECG team, this employee maintains occasional contact with the former coworkers. He recently contacted the executives, securing additional information about the bid process and promoting the firm's capabilities.
What ethical standards might be violated in these two situations and why? How should each one be addressed by leadership and the Ethics Review Committee? Support your points with ethical and business reasoning.
The paper will discuss the two situations given for ECG. There are some ethical implications for the situations and they need to be analyzed. The paper also explains how the Ethics Review Committee will address the issues. Ethical standards are essential to be followed by all the organizations in the competitive business environment. In all kinds of deals, the organizations are required to follow ethical standards. The work environment and organizational culture should be developed in accordance with the ethical framework of business, so as to deliver ethical business practices in the employees of the organization.
The paper will focus on ethically analyzing the two situations faced by the company ECG. The first situation is related to the signified acquisition of Government Allies, Inc. One of the senior executives of the company is indulged in the acquisition process and has self interest associated with the deal. The second situation is related to a competitive bid for an IT consulting contract for X Telco. The paper will provide a detailed description of the ethical standards violated in the situation and its dealing with the assistance of the leadership and the Ethics Review Committee (Neal, 2000).
The company's signified acquisition of Government Allies, Inc. after the IPO is very important from the point of view of business growth. According to the situation, one of the senior executives has her financial investment in Government Allies, Inc. with her name and her spouse's name. The successful completion of the acquisition and the IPO will provide the stakeholders of the Government Allies, Inc. the proportionate stock of the ECG. The senior executive has not followed the ethical standards of business and is indulged in focusing on the self interest with the deal.
The senior executive focused on gaining benefit from the acquisition deal. It is due to the reason that there is financial ...