22.08.2019
 Assignment Article

BUSINESS CONTEMPORARY SOCIETY and INTEGRITY (BBMM501)

Case Study Report

DUE WEEK a few. 1

Learning Outcome Assessed: a -- e

Weighting: 30%

Drafted Report Case Study Analysis (2000 words)

Assessment -2

Values, morality and leadership: The AWB scandal

The group of corporate scams and transgressions that have come about over the last ten years, including individuals associated with Fannie Mae, Freddie Mac, Alcoa, Enron, HIH, Merck, Lehman Brothers, Parmalat, Union Carbide and WorldCom, have not just contributed to global financial downturn. They have also raised concerns about the quality of corporate management and integrity, and damaged the mental relationships among such firms and their multiple stakeholders. Studies of this kind of scandals and transgressions nationwide suggest that fraudulence, including corporate scandals and institutional file corruption error, has cost the Australian economic climate dearly. This really is supported by intensive research on corruption completed by Transparency Intercontinental, which objectives particular countries in Asia and Africa and their governments for work. In response, a large number of governments and enlightened companies have established tighter corporate governance (CG) and private accountability regulations and systems, together with an array of corporate sociable responsibility (CSR) programs. As the former happen to be aimed specifically at stopping fraud and other unethical techniques, CSR is usually primarily intended to enhance company reputations through undertaking socially responsible community activities. In the case of the Aussie Wheat Table (AWB), the government-owned monopoly wheat exporter, a combination of incompetence, pragmatism and clear lies led to the scandal that engulfed AWB in 2006. Together with other competitors, AWB was found to obtain been involved in the provision of large amounts of kickbacks to government representatives in Iraq in order to ensure the continuing flow of their wheat, in contravention of specific Australian authorities legislation. It absolutely was revealed that AWB had took part in in this sort of illegal activity, including the stunning revelations those of the US$1. 8 billion dollars that experienced flowed to Iraq during Saddam Hussein's regime through bribes and the rorting with the United Nations Oil-for-Food program, a large proportion (US$300 million) originate from just one company, AWB. From the more than 3000 companies that had agreements with Korea, 2253 paid kickbacks, although none also than Iraq's biggest wheat or grain supplier, AWB. The local and global media went on a rampage, with one commentator describing the events unfolding during the time as ‘Deceit by the Truckload'. Finally, reacting to mind-boggling publicity, the Australian government established the Cole Query to investigate the scandal. Corporate deception and incompetence, plus the Australian government's apparent predisposition not to primarily accept the claims of AWB's accusers, were the consistent styles throughout the 12-week inquiry in to the so-called ‘oil-for-food' scandal. Among other side effects, this influenced Australia's standing internationally; for example , its position on the Openness International Data corruption Index fell from being unfaithful to 14 The Cole Inquiry brought up a number of specific issues regarding AWB's beliefs and operating procedures, and also broader problems about corporate and business ethics, values and management. It wondered how these kinds of illegal and immoral activities had been permitted to occur; the apparent absence of internal auditing procedures, the AWB managers' ethical and leadership weak points; and the company's cover-up of its actions. However , it also questioned the Australian government's apparent deficiency of monitoring, and its reluctance to confront the difficulties despite a mountain of diplomatic...