Jan 12, 2018 in Management

Leadership and Ethical Decision

ECG is a highly powerful, successful and also rewarding company, which is very well-known about investment, development of property and quality service. The main motive of ECG is to create them as a strong, recognized brand which is famous globally and also distinguished themselves than other brands. ECG has executed the rules of conduct or guidelines successfully. ECG serves to maintain and supervise the rules and code of conduct regularly.  Employees of ECG, who are involving themselves in training activities, also re-examining the specific guidelines of the rules of conduct, Employees can also access these guidelines or protocols from intranet of ECG. But the ethical suggestion may vary with different situation and condition. We can also say it may vary with case to case. For handling each cases or specific ethical issues one company may consult with the individuals as well as group of people. Who can analyze the cases properly and also re-examine the problems of each cases carefully.

Analysis of Case I

In the 1st case, after seeing the opportunity of success and growth ECG plans to acquire Inc, government allies. They feel they can earn much more profit through this acquisition. Because of this reason ECG have keen interest to acquire the Government allies. But for this acquisition the company needs to complete a procedure which is all about the completion of due diligence. Actually due diligence is all about a meeting of senior executive, key management people to aware, estimate, value and judge the entity of business before closing the deal of acquisition. They discuss several issues here, like: market segmentation, market size, risk factor after acquisition, opportunity to enlarge market size, profitability factor during acquisition, history of the acquired company, investment capability of acquisition, increase of revenue after acquisition, reviewing the acquired company’s current  financial condition. But here, the case is slight different. Here we have seen that the senior executive and her spouse have a keen financial as well as monitory intension in that acquired company, government allies. But it is not ethical.

 Here the ethical standard is violated. Because all those who are present in the due diligence process should not have any financial and personal interest in the acquisition taking place. In the process of acquisition of government allies by ECG all those individual owning the stock and shares of government allies will receive of a portion of profit individually. In this case we can see the senior executive and his spouse is having a personal as well as financial interest in government allies. Automatically the senior executives even after being a part of due diligence is going to benefit personally out of the earnings. This is not ethical at all. It is also relevant that the advocate word in the last sentence of 2nd paragraph is used as an adjective over here to implement the senior executives who is a lady is involved in the due diligence process. She has been an active member in the process making, decision handling and all other important aspects to be noticed during the process of acquisition. She being such an acute member has no right to have any sought of personal interest in the acquiring company.

The case is also telling us about a senior executive who has an unrevealed financial and personal interest in government allies. Where ECG is quite famous about the professionalism, consistency services and commitment, this incident can create a bad impact on professionalism and commitment. Where ECG is acclaimed company in terms of its dedicated managerial team and professional executives, and committed to gain the recognized leader in best quality and professional service. This case also violated the company images and also violated the rules and ethics of acquisition.

Analysis of Case II

In the 2nd case, ECG is involving them in an aggressive bid for X Telco. This bidding is all about a productive and gainful IT consulting agreement or deal. This contract is very lucrative and remunerative in nature in terms of competitive bidding. X Telco is a renowned name in the fields of communication. It is a well-known company which has a lucrative record in past and also key competitor in communication field now days. The team and the leaders of this communication industry specifically ECG try to generate and evolve their plan, program, recommendation and proposal to X Telco. They even try to demonstrate their presentation. They give their presentation and recommendation to X Telco just because of acquiring and ensuring the contract.

In addition they are giving presentation also to increase the revenue as well as sales and providing an impact on the IPO sector. But the problem starts from here which violated the norms and rules of conduct. One member who is former employees of X Telco linked with two present executives at X Telco. And the most interesting thing is that these three are in the bid. They even contact each other infrequently. These two present employees of X Telco are in touch of their former co- employees. And here the most relevant thing is ECG completely unaware of this fact. This is completely unethical that a former employee of one company link with the present employees of that very company are in the review bid. And that former employee recently communicates those two executives of X Telco for acquiring the secret as well as extra information regarding the process of bidding. This incident is an unprofessional and illegal in nature.

The fundamental motive of the process of bid is to focus open contest with full of clarity. And here we have seen the case is totally reverse and illegal. Someone is tried to secure extra information from the executives of a well known company. Not only that, the person who is tried to secure the information is the former employee of that company. The company who tries to give their recommendation and proposal to X Telco for gaining more profit and revenue are completely unknown about this truth. This is totally illegal and unethical not only in terms of bidding also in terms of professionalism, dedication and commitment. Here in this case the rules of conduct are violated.

Violation of Ethics for Case I

In the 1st case the senior executives possesses leadership quality holding a post of senior executives misuses her power not only for her personal interest but helps her spouse by getting a portion of the profit of acquisition taking place between ECG and government allies. Therefore we can see she is misusing her power for her own benefit. As it comes in to the pictures Ethics Review committee has to find the solution regarding what should be done, so that no senior executives misuses her/his powers for their personal benefit.  Each and every member should aware that the same or similar mistakes should not be repeated because it straight away hampers the image of the company. From next time onwards if any official executives involve themselves in any sought of unethical, illegal works it should be made sure that serious action taken against them.

Violation of Ethics for Case II

In the 2nd case X Telco being a customer to ECG and we can see ECG is trying to influence X Telco to accept the contract, as it will increase its sales and develop the revenues as well as it will surely provide an impact on  IPO. Here also an employee is unethically keeping contacts with the two present official executives of X Telco who has also been his former co-employees. In this process the ethic review committee has known that he has been acquiring information about the bid. As this is unethical and illegal a serious step should be taken against him and other two co worker and the company should be made aware for the fraud taking place. The ethics review committee should send the name of two present employees to X Telco, because they are also involved in this activity. Also the ethics review committee should mention the name of that person who is the former employee of X Telco in review bid.

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