Essays on Sustainable International Business Futures - CIMIC Group Case Study

Download full paperFile format: .doc, available for editing

In general, the paper "Sustainable International Business Futures - CIMIC Group " is a perfect example of a business case study.   International business offers an array of benefits to countries as they specialize in the manufacture and export of products that a country can produce in the most efficient way. Imperatively, governments and their agencies must ensure that they follow ethical practices and legal frameworks to reduce or prevent the occurrence of unethical and criminal activities by business enterprises, especially multinational corporations. Today, several questions have been raised concerning the activities of multinational corporations (MNCs), particularly the darker side of their operations as they seek to do business in several countries (As-Saber n. d).

Using the critical scenario method (CSM), international business activities must be viewed from a firm-centric approach to addressing the social and environmental issues surrounding such MNCs. Imperatively, a critical scenario method considers the future impact of such practice, particularly how these multinational corporations carry out their activities (As-Saber n. d. b). The concept of black international business offers scholars and experts an opportunity to question and investigate critical ethical issues and dilemmas that influence the sustainability of international business activities of the multinationals in the face of globalization.

International business criminal activities are not new, only that these practices have changed over time, but the only constant variable has been the perpetrators; the multinational corporations in collusion with governments (Wheelan & Fink 2016). Globalisation has been a pivotal factor in making illegal international business operations more pervasive, especially giving of bribes by MNCs to win contracts in different countries, as demonstrated in the following case study (As-Saber n. d).

This paper examines the case of unethical business practice.     Evaluation of ethical standards of CIMIC Group Ethical business practices, particularly devoid of corrupt activities, are essential for sustainable international business among multinational corporations. However, the recent corruption revelations at one of Australia’ s biggest contractor firms, CIMIC Group (formerly Leighton Holdings), raises questions on the ethical practices, and social and economic sustainability of the international business by multinational corporations (Bachelard & McKenzie 2016). The corruption revelation at the organization demonstrates a lack of commitment by multinational corporations to uphold the best practices in their operations and entrench a pervasive culture of corruption.

A critical evaluation of ethical standards at the organisation demonstrates that CIMIC has failed to carry out international best practices and to cultivate an ethical culture that abhors corruption and other unethical practices in their operations, especially as they seek to expand their activities in other parts of the world and benefit from the salient features of globalisation. Analysts believe that the top 100 listed corporation reacted to earlier corruption allegations by changing its names and its senior executives as a way of addressing the entrenched corruption culture (Lawrence 2017).

However, these efforts seem not to have bor any fruits due to the recent revelations from the organisation on bribery allegations in order to win huge contracts in India and other parts of the world. It is evident that the corporation has actively been engaged in several unethical issues that taint not only its image but also the conduct of several multinationals in the country. Firstly, stories of senior executives being involved in mega corrupt scandals in the corporation’ s offshore arm have been rife, particularly before it changed its name.

For instance, between 2010 and 2011, two offshore bosses Russell Waugh and Peter Cox are alleged to have commissioned or known different amounts of corruption from Unaoil, where huge payments were made to bribe Iraq officials. Secondly, the organisation’ s offshore arm is accused of money laundering through an Indian shell company meant to pay bribes where invoices were backdated to cover the bosses (Bachelard & McKenzie 2016). Further, the company is said to have paid $ 15 million to guarantee its steel supply to the same money-laundering organisation in India.

The said amount was later laundered to Iraq. However, the company never got steel, and it was later discovered that the amount was a bribe aimed at removing a certain business obstacle in India. Its executive at the time, Peter Gregg insisted that there was no wrongdoing and threatened that he could sue anyone alleging unethical practices at the firm. Thirdly, the company is alleged to have hired without any due diligence, an Indian wheel dealer called Syann Reddy to help them secure a multi-billion coal tender in India by a CIMIC offshore subsidiary, Thiess.

Mr. Reddy talked would engage the company’ s managers on the need to pay close to $16 million in bribes to officials in the Indian government to help them secure the coal deal (Mulgan 2016). To ensure that they got the deal, another unethical practice occurred at the organisation as its CEO, Bruno Munro, extended his contract without the necessary procedures or approval by the shareholders.

References

Andrews, E.L., 2014. “Ed deHaan: How to Rebuild Trust After a Scandal”. Accessed on May

20, 2017, from https://www.gsb.stanford.edu/insights/ed-dehaan-how-rebuild-trust-after-scandal

As-Saber, S., n.d. “Topic 7: Black International Business: Ethics and corporate social

responsibility”, pdf. SIBF Lecture 7a.

As-Saber, n.d. “Topic 6: Critical Perspectives on International Business”. SIBF Lecture 6.

Bachelard, M. and McKenzie, N., 2016. “Leighton: an entrenched culture of corruption?”

Accessed on May 20, 2017, from http://www.smh.com.au/business/leighton-an-entrenched-culture-of-corruption-20160406-gnzstl.html

Bocken, N.M.P., Short, S.W., Rana, P., and Evans, S., 2014. “A literature and practice review

to develop sustainable business model archetypes”. Journal of Cleaner Production, vol.65, pp.42-56. Accessed on May 20, 2017, from http://www.sciencedirect.com/science/article/pii/S0959652613008032

Bonini, S., Court, D., and Marchi, A., 2009. Rebuilding corporate reputations”. McKinsey

Quarterly- June 2009. Accessed on May 20, 2017, from http://www.mckinsey.com/global-themes/leadership/rebuilding-corporate-reputations

Hoy, G., 2014. “Australia 'failing' to tackle bribery by multinational companies: OECD”.

Accessed on May 20, 2017, from http://www.abc.net.au/news/2014-01-06/australia-accused-of-failing-to-tackle-bribery-among-multinatio/5187070

Knight, E., 2016. “Major concerns over Australian corporate corruption, but convictions

few”. Accessed on May 20, 2017, from http://www.smh.com.au/business/comment-and-analysis/major-concerns-over-australian-corporate-corruption-but-convictions-few-20160331-gnv8ap.html

Lawrence, C., 2017. “Corporate corruption and government failure to act: who's running this

country?”Accessed on May 20, 2017, from https://www.theguardian.com/commentisfree/2017/feb/02/corporate-corruption-and-government-failure-to-act-whos-running-this-country

Mulgan, R., 2016. “The growing case for a federal anti-corruption agency”. Accessed on May

20, 2017, from http://www.canberratimes.com.au/national/public-service/the-growing-case-for-a-federal-anticorruption-agency-20160427-gofwyo.html

Székely, N., and vom Brocke, J., 2017. “What can we learn from corporate sustainability

reporting? Deriving propositions for research and practice from over 9,500 corporate sustainability reports published between 1999 and 2015 using topic modelling technique”. Accessed on May 20, 2017, from http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0174807

Wheelan, T., and Fink, C., 2016. “The Comprehensive Business Case for Sustainability”,

Harvard Business Review. Accessed on May 20, 2017, from https://hbr.org/2016/10/the-comprehensive-business-case-for-sustainability

Download full paperFile format: .doc, available for editing
Contact Us