INTRODUCTION
The business scandal can impair the brand image and reputation in the competitive market. When leading the company, the management has to focus on some ethical implications to contain the fair business activities. BAE Company has faced difficulties due to a big scandal. Of course, it hit the business profitability, different key stakeholders.
BACKGROUND OF THE COMPANY
BAE system is security, national defense, and aerospace company, based in the United Kingdom. The revenue streams of the company are in the limelight. This company is the largest supplier of the United States defense department. The revenue of the company is £18.32 billion along with the profitability of £0.88 billion. The company was founded in 1999. The main products of the company are Civil and military aerospace, defense electronics (Leigh and Evans).
NATURE OF THE SCANDAL
The scandal revolves around several bribes and kickbacks in different business operations. The nature of the scandal is triggered by the corruption. And finally, the company agreed to pay £300m in penalties. The false accounting and misleading statements by the company management caused the falsified report to the stakeholder. The serious fraud justice and department of justice in Washington investigated the case (Musgrove).
KEY PLAYER
The major key play was the top management, as without the mutual consent of the top administration, it a was not possible to falsify financial reports It was allowed to happen due to the pressure of the management, as unfair sales of products were delegated by the top management. The bribe was offered to people. The management agreed to pay £300m in penalties (Telegraph.co.uk).
CURRENT STATUS OF ORGANIZATION
Before the scandal, revenue streams were quite visible, as this company was on top due in the aerospace and security industry. However, there was the huge impact on the profitability of the company after paying £300m. The court case is in the process. The serious fraud office and department of justice in the United States investigated the case. There is a huge threat to the company management, as it can be blacklisted the court. However, still, the company is denying the bribery allegation. Also, the company is running successfully due to its high-quality products and capabilities. However, the company management has redesigned different deals with different countries such as Saudi Arabia and Tanzania. The supply of equipment and panes in different countries has been sustained after the corruption allegations. It has lost the customer confidence, and therefore, some new contacts have been introduced (Musgrove).
MAKING CONNECTIONS TO LEADERSHIP COURSE
There are five connections to the leadership course. For Instance, the first connection is the ethical business, which is a key part of the leadership. When selling radars to Tanzania, the business ethics were not considered. The second connection is the honesty. In the business leadership, honesty is the most important factors, which has been studied in the course. Unfortunately, in the BAE’s operations, it has not been observed. The third connection was the commitment to staff. In BAE’s case, the staff was committed to aligning with the main business objectives. The fourth connect is creating the moral values. The management of the company agreed to pay a certain amount by accepting corruption allegations. It seemed a contribution in the fair business practices. At last, transparency is another connection, as due to lack of transparency, culprits founded the space to conduct the fraud (Leigh and Evans).
CONCLUSION
In the end, it is to conclude that the BAE system accepted the allegations and created moral values. In the modern business era, fair business practices can help the company to sustain the business growth and brand image. BAE, after the scandal, is willing to find a new legal and ethical ways to do business and contribute to the national security of the countries in an effective and lucrative manner.
Work Cited
Leigh, David and Rob Evans. “BAE admits guilt over corrupt arms deals.” The Guardian. The Guardian, 6 February 2010. Web. Web. 28 February 2018. https://www.theguardian.com/world/2010/feb/05/bae-systems-arms-deal-corruption.
Musgrove, Mike. “BAE Systems pays $450 million to settle bribery scandal charges.” The Washington Post. The Washington Post, 6 February 2010. Web. 28 February 2018. http://www.washingtonpost.com/wpdyn/content/article/2010/02/05/AR2010020503811.html.
Telegraph.co.uk. “BAE Systems: timeline of bribery allegations.” The Telegraph. The Telegraph, 21 December 2010. Web. 28 February 2018. https://www.telegraph.co.uk/finance/newsbysector/industry/defence/8216172/BAE-Systems-timeline-of-bribery-allegations.html.
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