Log Assignment #1: DOJ/SEC Drop Bribery Probes of 3M
In an article written by Matthews (2012), the author disclosed that the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) reportedly dropped their probe on allegations of bribery for 3M, in the company’s subsidiary transactions and dealings in Turkey. The report indicated that no charges were made since 3M, which voluntarily initiated the investigations, were noted to cooperate and disclose all crucial information. The investigations were actually delved into in an effort to intensify 3M’s corporate compliance and adherence to ethical standards.
One strongly admired the move as initiated by 3M to investigate its subsidiary’s dealings with officials from another country. The experience manifested 3M’s commitment to abide by ethical, moral, and legal standards in all undertakings; whether in their head office or in other subsidiaries globally. 3M should actually be commended for initiating the investigation and disclosing all crucial information to government agencies, which are responsible for validating accuracy of bribery allegations or other ethical breaches. By confirming that 3M adhered to policies of compliance, transparency, and good governance; as well as adherence to ethical standards, it upheld its exemplary corporate image on a universal and global stance.
Matthews, C. (2013, February 19). DOJ/SEC Drop Bribery Probes of 3M. Retrieved from The
Wall Street Journal: http://blogs.wsj.com/corruption-currents/2013/02/19/dojsec-drop-bribery-probes-of-3m/?KEYWORDS=Companies+doing+Ethical+Conduct
Log Assignment #2: Wal-Mart Toughens Supplier Policies
Wal-Mart was reported to have instituted measures that require more stringent policies to suppliers resulting from the incident which transpired in a Bangladesh factory that contracted a fire and where allegedly clothes from Wal-Mart were found, but were this factory was supposed to have stopped making the clothes. As disclosed, there was an urgent move from Wal-Mart to issue a stern warning that it was apparently adopting a zero-tolerance policy to suppliers that reportedly subcontract work to other factories without the knowledge of Wal-Mart.
One shares the same conviction, as advocated by Wal-Mart to ensure that suppliers conform to ethical standards and do not violate standard procedures for global sourcing. By re-iterating the policy guidelines and enforcing more stringent penalties, suppliers which are found in violation of these would immediately be taken out of the authorized suppliers in behalf of Wal-Mart. As disclosed, there were suppliers who did not abide by a ‘three-strike policy’ which gave suppliers three chances to comply with Wal-Mart’s safety requirements. There is value that must be observed in honesty and integrity to abide by company polices.
Wal-Mart Toughens Supplier Policies. (2013, January 21). Retrieved from The Wall Street Journal: http://online.wsj.com/article/SB10001424127887323301104578256183164905720.html?KEYWORDS=current+articles+on+companies+exhibiting+ethical+conduct
Log Assignment #3: Dealpolitik: Why It’s Hard to Successfully Sue Your Banker
In the article written by Barusch (2013), the company Goldman Sachs Group, allegedly provided sound and ethical advice to one of its former clients, Dragon Systems prior to the latter’s reported $600 million sale to Lernout & Hauspie Speech Products N.V. Apparently, it was reported that the sale was actually made in the form of a shares from Lernout, which eventually filed bankruptcy after about six months. In so doing, Dragon Systems shareholders were apparently noted to have been wiped out and subsequently sued Goldman for the losses they sustained. The courts found Goldman not guilty and since a protection from liability clause has been signed between them and Dragon Systems, the company was exonerated from the case.
One empathized with Dragon Systems but it is unfortunate that the succeeding events were actually not anticipated by the time the deal was being arranged. Taking the point of view of Goldman Sachs, it ensured that all legal documents, including protection from liability has properly been designed and agreed upon. The lesson being is that companies negotiating for mergers should exhaust all factors to be analyzed prior to implementing the venture.
If one was part of Goldman Sach, it would have been fortunate to have covered oneself from liability due to the subsequent events that ensued with one’s clients. However, one would still feel uncomfortable that one was not able to provide a more convincing advice that should have not made the deal push through, in the first place. One strongly believes that although one was not legally responsible and liable, there is still a part of social corporate responsibility that empathizes with the outcome of the deal, one was initially a significant part of.
Barusch, R. (2013, January 25). Dealpolitik: Why It’s Hard to Successfully Sue Your Banker. Retrieved from The Wall Street Journal:
http://blogs.wsj.com/deals/2013/01/25/dealpolitik-why-its-hard-to-successfully-sue-your-
banker/?KEYWORDS=current+articles+on+companies+exhibiting+ethical+conduct
References
Wal-Mart Toughens Supplier Policies. (2013, January 21). Retrieved from The Wall Street Journal: http://online.wsj.com/article/SB10001424127887323301104578256183164905720.html?KEYWORDS=current+articles+on+companies+exhibiting+ethical+conduct
Barusch, R. (2013, January 25). Dealpolitik: Why It’s Hard to Successfully Sue Your Banker. Retrieved from The Wall Street Journal: http://blogs.wsj.com/deals/2013/01/25/dealpolitik-why-its-hard-to-successfully-sue-your-banker/?KEYWORDS=current+articles+on+companies+exhibiting+ethical+conduct
Matthews, C. (2013, February 19). DOJ/SEC Drop Bribery Probes of 3M. Retrieved from The Wall Street Journal: http://blogs.wsj.com/corruption-currents/2013/02/19/dojsec-drop-bribery-probes-of-3m/?KEYWORDS=Companies+doing+Ethical+Conduct
