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PH4(IP) 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...

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PH4(IP)

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.

Be sure to reference all sources using APA style
Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
127 Votes
Running head: LEADERSHIP AND ETHICAL DECISION MAKING 1
Leadership and Ethical Decision Making
Student Name
University
Course
Date
LEADERSHIP AND ETHICAL DECISION MAKING 2
Leadership and Ethical Decision Making at ECG
Introduction
ECG has been going through vast changes in the recent years and many exciting
changes have taken place. We have been quite successful implementing our newly introduced
Code of Conduct. The implementation has made the company in a different position
altogether. Everyone in the company is trying their best to make the things more ethical and
just. The launch of the Code of Conduct has
ought about many issues that have been taken
care of. We intend to come up with the best for the company, stakeholders and employees.
Thus, we need to handle each case in the best possible ethical way.
Situations & Remedy
The first matter is of the involvement of one of the board members for acquisition
team. The main goal of the board is to vote on and decide what are the business avenues that
need to be acquired or passed up? All the team members should be unbiased and should not
have any vested interest in any one of the acquisitions taking place and is voted upon. A
senior executive in the team is found to be having interest in Government Allies. This can
pose several threats to the very ethics of the company and the company needs to address the
same so that they can conduct the acquisition in the fair and just manner and they can prevent
any such thing happen in the coming future. The company decided to go for having a new
Code of Conduct just to introduce ethical business practices across the all functions and
check any unethical practices that may harm the very reputation of the company. What she
did would definitely wane the company in the long-run. It would have bad impact on the
eputation of the company which is key for any successful business (Bono, E., 2008).
First of all, she did not choose to disclose about her linkages with Government Allies
when she came to know that it was being selected for an acquisition. The employees can have
invested interest anywhere and even ECG encourages them to do so. However, it is a conflict
LEADERSHIP AND ETHICAL DECISION MAKING 3
to have invested interest in the company you are voting for an acquisition process. Even if
she would not have been biased by that...
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