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BUSINESS SOCIETY and ETHICS (BBMM501)
Case Study Report
DUE WEEK 5.1

Learning Outcome Assessed: a - e

Weighting: 30%

Written Report Case Study Analysis (2000 words)

Assessment -2
Ethics, morality and leadership: The AWB scandal
The series of corporate scandals and transgressions that have emerged over the last decade, including those associated with Fannie Mae, Freddie Mac, Alcoa, Enron, HIH, Merck, Lehman Brothers, Parmalat, Union Carbide and WorldCom, have not only contributed to global financial crises. They have also raised questions about the quality of corporate leadership and ethics, and damaged the psychological relationships between such companies and their multiple stakeholders. Studies of such scandals and …show more content…

But whether this clears the government of responsibility for not acting on the many tip-offs about AWB’s behaviour depends on whose test you use.41 According to Australia’s prime minister at the time, John Howard, the test should be one of ‘reasonableness’. In the press conference following his appearance at the Cole Inquiry a few hours earlier, the prime minister countered arguments that his government should have acted on the dozens of warnings by citing others who had been duped by AWB. However, there had been numerous earlier warnings of AWB’s unethical practices.42 For example, just a month after AWB made its first payment of US$500 000 into the Jordanian account of transport company Alia (half owned by the Iraqi government), the Canadian Wheat Board was told by the Iraqis that to have its wheat contract processed it would have to pay US$700 000 into the same Jordanian account. The Canadians duly quizzed the propriety of such ‘trucking fees’ with the UN’s Office of the Iraq Program, to be told it was indeed illegal. If that was the case, then why was AWB doing just this, they asked.
Questions:
Assessment AWB was a Govt owned company. clearly it had been violating not only the corporation laws but also the morality and ethics principles. Awb was involved in the act of bribing its overseas clients to keep

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