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organizational level above Balance Sheet of the case: Bribery in the ENI group, from the point of view of business ethics. Conclusions and future prospects

The following is a Balance Sheet on of 4 fundamental aspects of business ethics:

1.The scheme for business ethics:

ENI is a large corporation and as such can be said to have moral responsibilities, and that decisions within the company follow a set of beliefs and values \u200b\u200bthat determine what is right or not. In this way, we can say that at the time that Lorenzino accept the bribe, made a decision, which would be contrary to the beliefs of what is right or not for the company.

addition, ENI has social responsibilities and the decision by Lorenzino affection of corporate economic, legal and ethical. Economic responsibility, because when it came to light that the company was receiving bribes, utility, prestige, customers decreased significantly. Liability, because the receiving bribes is prohibited and punishable by various laws. Finally, ethical responsibility, that people never expected such actions by the ENI group, such actions are considered corruption to society.

2.Teorías ethical standards for business

With regard to the issue of ethical relativism and absolutism, Lorenzo Marzocchi be regarded as an ethical relativist person. Believes that ethics is a personal reason that depends on the individual. That is, Lorenzo Marzocchi really think your ethics are taking bribes because they do not feel badly seen, which believes it would not affect anyone over extra money what gives the company ENI. Furthermore, normative ethical theories are given in under two headings, consequentialism and non-consequentialism. For this case is based on consequentialist theory, since to know how to act well, one must first consider the consequences to take free from established ideas. This means that Lorenzo Marzocchi by accepting bribes, was involved to be tried by the authorities, however admitted that he received money from other companies providing support and information to prosecutors in Milan to carry out this investigation was going on inside of ENI.

In consequentialist theory, ethical theory of egoism based on Lorenzo Marzocchi and directors of ENI was that these characters could not be fully aware of the consequences of their actions, because their only interest was to get extra money and increase their profits, hurting the company.

also utilitarian theory of the "greatest happiness principle", ie it should be noted that moral action is made should benefit the most people in society. In this case, utilitarianism does not apply since Lorenzo Marzocchi just looking for their own personal interests without looking at the consequences that would bring the company where he worked. Finally, the theory is not consequentialist theory of duties, Lorenzo Marzocchi thought that helping to provide information to the investigation of this case ENI was part of solving your problem and not be ethical to wear an image of ethics for taking bribes. Finally, with the theory of rights and justice, Lorenzo Marzocchi received money after he was called by the court in Milan to work with the law and report those most were responsible for the bribery that brought harm to the institution in terms their corporate image.

3.Herramientas management of business ethics:

Ethics can be a strength or weakness of the company, which may affect very significantly to the company. ENI is a company that has bylaws, Code of Ethics Rules and Corporate Governance Code promoted by the Italian Stock Exchange. However, the decision to Lorenzino Marzocchi, status and did not follow those rules, which brought a major financial meltdown for the company and bad publicity for the company thereby decreasing its customer base. This was in our opinion because the ethics management within this company was not very well managed and therefore the ethical issue in the company at that time was considered a weakness.

On the other hand, what was lacking to make management consultants have ethical, auditing, accounting, and make reports, which had been detected in time this was occurring irregularities within the company by the Lorenzino Marzocchi. 4.The


management business ethical dilemmas: the model of Joseph Badaracco

In this unit, Joseph Badaracco presents two kinds of concepts which the first is "unclean hands" which must be recognized that development of the company is involved in the decisions we choose. In this way, assume responsibility for the decision and sometimes have to take responsibility for moral obligations when no more options.

On the other hand, the concept of "moments of truth" occurs when we make decisions when the consequences have long-term damage. In this case of bribery in the ENI group, is considered under the concept of "moments of truth", as Lorenzo Marzocchi, project director Enipower Group and the directors of ENI had two alternative decisions which were to accept or not accept the payments received by foreign companies and which part was for politicians. However, the decision making of these characters was to accept the payments offered them a dozen foreign companies. It Lorenzo Marzocchi and believes that the other managers of ENI receiving money through foreign accounts issued to other foreign accounts or else in the way of affect or "inflate" the company bills by 10% for both partners (Lorenzo Marzocchi and Cozzi), this group of people care more about their personal interests with respect to higher profits at the expense of the company where they worked.

therefore not interested in the long term, the company ENI to be affected in society and would be criticized as not credible and that company can not mention the word existence of a "code of ethics."

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Eni Group's relations with society

Under Baradacco model, the dilemma facing the Eni group at this level affects people found within the organization, as well as people who are outside of the organization.

That is, the important decisions taken by the company concerned and whether directly or indirectly to different social groups. With the unfair act of bribery, it became apparent poor decision making which affected the company officials, either on the bad image they project of the organization and the optimal development of the activities of the company. In addition, another group that is subject to this are the residents of the communities, since the projects were accepted by officials for bribery only, without taking into account other factors that are important to the community.

also Baradacco extracted three questions for the management of these above organizational dilemmas:

Have I done everything I could to secure my position and affirm the strength of my organization?

Here Marzoccci Lorenzo has not ensured the correct position the company has been kept. Because this company should be governed according to certain regulations, which has been that employees have done what they wanted based on their economic desirability. Demonstrating that the organization has a firm and its activities, ie, do not follow proper procedures to get to meet their objectives and Responsibility to society.

Have I done everything possible to think creatively about the role of my institution with respect to society and constituents?

were not taken into account the consequences of acts that would take some executives of the company, bypassing the constituents, who to have a lower degree of power are not taken into account the extent to which it affected. Also, senior managers should use creativity to make wise decisions at every predicament that is presented in the company.



In this situation I have to play the lion-leadership, Ispir, emblematic, or the fox - cunning and sagacity?

In this situation, senior management of this company took the image of the fox, where they thought to be more cunning to commit such acts. Not taking into account that some day the truth would come out to light and giving it to know the groups affected by those decisions unethical. That is why, rather that the company should take the role of the lion, which is inspiring for the rest of the employees of this company feel safe to work in an organization who demonstrates a positive image in society.

vs Under the correct analysis. can be analyzed properly with the dilemma in which ENI group was found in the following way:

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Recommendations for Corporate Citizenship Sustainability Strategy

The company ENI was without a doubt one of the biggest new face groups. However, Some workers took the decision to accept bribes, that decision damaged the image of the company and thus also its estabilidiad perojudico economic, to prevent corruption is again given within the company and improve their current situation presents the following recommendations:

1.ENI, one Italian state oil giant must inculcate the vision and mission as well as the organizational philosophy to all employees of the hierarchy. This will provide not present such problems, cases of bribes for political purposes in an organization. On the other hand, employees will be identified with the company which try to perform adequately and thus instill their values \u200b\u200band principles that this organization is not treated as an entity with code of ethics.

2.ENI is a large corporation which has some power in society. Therefore, be advised that there is a responsibility to society. That is, should start to worry about giving something back to society because it is an energy company, could be more focused on energy savings worldwide, so worrying about the environment and promoting campaigns to promote responsible energy use. So this way the company could improve its image, which was damaged by the bribery scandal.

3.Se should punish officials involved in such unfair practices such as bribery, so that the other employees are very clear that there must be interested in immediate economic benefit is obtained with bribes, but should also consider the other important decisions affecting mainly taken CORPORATE large organizations. That's why, that must be done fairly constant audits to better control of operations by personnel from the highest places, as they have a greater responsibility in the company.

4. ENI should cconsiderar social rights, civil and political rights of individuals. These individual rights must be taken into account when making decisions, searching siemrpe to respect, social rights, which benefit those who have links with ENI, civil rights, ta them as people are free to express your opnion and say what that may be affecting and ultimately political rights, they presume that the company should sair private sphere.

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ENI is implementing a sustainability strategy since 2007, the year in which published its first sustainability report, beyond health, safety and environment.
The main reason for the sustainability of ENI is its strong commitment to sustainable development. It also carries out extensive studies to identify and implement concrete actions in line with the commitment to manage the company's excellence, reflected in sustainability reporting.

information sustainability reporting is reliable because it is extracted from an information system that integrates the functions and lines of business. It should be noted that the investigation is conducted by an independent audit and ENI sustainability report is first of transparency in the European Union.

ENI sustainability to focus on two major stakeholders: staff and clients, and factors such as the environment.

Personal

One of the points where ENI sustainability focus is its people. The company is aware of the importance of this group and cares for their protection, capacity building and skills. ENI

achieved in developing the potential of encouraging staff that use all their energy and creativity in business. To do this, ENI must create a work environment where all employees have equal opportunities job growth, based on criteria of equality without discrimination.

Thus, the effective staff development becomes a key element of the success of ENI.

Below is a table with all employees on the payroll both Italians and foreigners, where both have the same benefits without discrimination based on nationality:

employees by sector in 2009

Customers

A second focus point where the sustainability of ENI are your customers. Therefore, it has set up a working group in charge of highlighting the elements of sustainability within the business of ENI. It gives both the supply of fuel gas and electricity. Furthermore, this group is responsible for strengthening the relationship with the consumer associations.

The main objective of this working group is to develop schemes that empower effective sustainability of the company's offerings to customers and to have a more fluid dialogue with the associations on issues of sustainable development of ENI. There are six basics
to evaluate the consistency between actions and communication of sustainability of ENI, ie indicators: transparency, proximity, innovation, environmental protection, corporate citizenship, education and advocacy.

Environment

A third point of the sustainability of ENI is the sustainable environmental action. It has been operating for evaluation, control and mitigation of environmental impacts throughout the production cycle of activities of ENI and its products and their suppliers and customers. ENI is currently carrying out four activities:

-Reduce the environmental impact of activities, continually improve environmental performance

-Protecting ecosystems and biodiversity-

continually improve the effectiveness of management systems

Within this point it should be noted that technological innovation is necessary to reduce the environmental impact of the activities of ENI, and that access to new energy resources improves recovery from underground and efficiency of use.

Conclusion

In conclusion, the relationship with stakeholders (Clients, staff) are an important pillar for a long-term sustainability of ENI. The pampered way, the impact on the environment is a very influential factor in the proper handling and recognition of the company. Business ethics and good governance allow ENI comply with the provisions that arises for success.

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bribes for the ENI group in relation to the Theory of Moral Intensity

justice theory is that individuals acquire
achievements in each scenario.

First problem:

In the case of bribery of ENI group, is not exercised this theory because they have been responsible for this act of corruption depended on Mr. Lorenzo Marzocchi, in which being the project manager Enipower was subjected to acts of bribery, receiving money through other entities in order to provide development dollars to Enipower management tasks. This caused it to be made public this scandal, the company is affected in their image, so the employees were questioned for acts that may not commit, wrongfully accused of being committed by the directors of the company along with other accomplices of the high flat.

In summary, the main problem that arises is the happened that made the project manager Enipower having received 400 000 euros of the Italian subsidiary of the Swiss company ABB.

In this issue respect the rights involved with justice concerning starting with the director of the company not to accept bribes ABB offering it, so as well, he was offered bribes and other companies Italwork Italian, Swiss and Belgian. However, although the company has been damaged by his image, to address and respect the rights involved, Mr. Marzocchi collaborated with the law to determine the reasons why he accepted the bribe. Thus, came out people were also really hurt the company to pay for their actions they chose.



Second problem:

justice theory respects the rights of individuals. However, in the case of bribery in ENI, not been complied with this theory as the right to work in a free market and fair competition was violated. Many companies missed the opportunity to work on the project Enipower, because of bribes offered and accepted. In this way several businesses were damaged. That is, in fair competition, Hueber any of these companies had the same opportunity to work on this project and thus generate and benefit from working in such a project.

To enforce the rights of these enterprises that should have been done is not accepting no bribes ACPET. Thus, it would be respecting the right of companies to develop their activities, or employment in a free and fair market competition and so all firms who wanted to work on that project would have had equal opportunity.

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ENI Utilitarian Analysis Example Problems

The utilitarianism is a consequentialist ethical theory in type which concentrates on the principle of obtaining the greatest happiness of the collective level. This theory must keep the moral choices in terms of pleasure and pain. The type of utilitarianism applied in the case of "Bribery of ENI" Utilitarianism is about the acts, since its base concentration focuses on individual acts and their moral judgments according to the pleasure and suffering caused by the action.

This table "Analysis of Cost - Benefit" displayed a decision on the action of Lorenzo Marzocchi, Enipower project manager, to accept or reject the bribe to receive EUR 400 000 (2003) by the representing the Swiss bank entities ABB and others (2004), to grant contracts to large sum of money in projects handled by Enipower, and also give political funding.

Explanation
table Cost-Benefit Analysis:
• Enipower project manager, Lorenzo Marzocchi whether to accept the bribe, will receive EUR 400 000 from other entities offering the bribe. In this way suffering, Mr. Marzocchi feel guilty about possibly risk the company for its wrongdoing. On the other hand, if the director of Enipower choose not to accept the bribe, the person will feel happy, that is, have no feelings of guilt, and feel with a clear conscience also lose the money they allegedly accepted the bribe would receive if . • Mauro Carteia
and other accessories of Enipower if they decide to accept the bribe, say their incomes and gain as suffering guilt, on the other hand, if they refuse the bribe will feel good because they have acted in an honest and sincere.
• Suppliers and legal persons offering the bribe, if accepted by Enipower, suppliers and entities offering the bribe will benefit as they ensure the contracts with this entity. However, to reject bribery, these providers and institutions will lose the contract with Enipower. • The company ENI
whether to accept the bribe will get more contracts with suppliers and other companies, but in return, denigrate their corporate image. Otherwise, if they refuse bribery, the company will be recognized for its image, as well as, employees will be motivated by working in the company. However, in rejecting the bribe, may lose contracts with suppliers and other business relationships.
• Finally, employees of ENI whether to accept the bribe, employees will be disappointed to work in a corrupt enterprise. On the other hand, rejecting bribery, employees will be working in a company with principles and values.

As a result, Mr. Lorenzo Marzocchi had to reject the 400 000 euros and other bribes, since they must bear in mind that ruin the image of the company and also disappoint the employees working in that state. Besides rejecting the corruption would not feel guilty or have been tried as it was.

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Justice

moral intensity is defined as the extent to which it is considered that a problem is an ethical issue. Also, the moral intensity consists of six major factors among them are the magnitude of consequences, social consensus, probability of effect, temporal immediacy, proximity and concentration effect.

bribes In the case of ENI Group, is the variable to analyze the magnitude of consequences, which is the expected sum of damages or benefits arising from the misdeeds of the officials taking business and that hurt, either both the corporate image as the efficient development of this organization.

For example, in this case the economic benefit was prioritized by Lorenzino Marzocchi, who watched only by its own interests without taking into account the negative consequences that would bring the to make an important decision in the company award as a work to the ABC affiliate 400 000. Not only involves the above-named officer, but also other officers, and political parties that also seeks certain monetary benefits to fund their campaigns. Then, use these financial resources can be of great help or support for politicians who need to finance their campaigns, but how to obtain these resources is not correct.

So get other benefits that companies obtain concessions in this way is how quickly you manage to get what they want only an amount of money that is very difficult for some officials of this type to reject. In Actually, are offers that are rarely rejected. As a negative consequence is that they run the risk of not operating this company as initially thought, and would often discarding other works that could be even better and even have a greater commitment to the development of where they are installed. The benefits that would bring the place is too often become industrial zones where demand a lot of labor, thus giving employment opportunities to people in the community. This generates, that these people get a salary and that it provide a better quality of life for their families.

Then, you will notice that there are many benefits due to negative decisions of people who have a high responsibility to take charge of management and corporate officials. Especially in this case sought only economic benefit without taking into account as it can affect not only the company but to the community where the work would be concessioning. Due to hasty decisions only by ambition for money, will be closing in opting for a chance I might not be the best would have been eligible, and only by the pursuit of profits does not see the magnitude of which can affect stakeholders.

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Ethics Management Tools for Business

1. Vision and Mission:

The company ENI's mission is as follows:

"We are a large integrated energy company committed to growth in research activities, production, transportation, processing and marketing of petroleum and gas.

Men and women have a passion for challenge, improvement, excellence and create a fundamental value to the person, environment and integrity We can see that his mission speaks of the performance of workers within the company, which encourages staff to improve personal decision.

This creates a fundamental value in them, which shows his interest in social development. You can also see that company shows some concern for the environment, being one oil company, turns out to be a sensitive issue because many times the company's interests conflict with the care of the environment. However, as the mission is announced that the company is interested in the issue.

http://www.eni.com/en_IT/company/company-profile/company-profile.shtml

2. Corporate Ethics Codes:
ENI has
Bylaws, Code of Ethics, Rules and Code of Corporate Governance organized by the Italian Stock Exchange. These are the documents that the company uses to comply with the principles pursued, which are integrity and transparency.

addition, these statements help employees to see what type of conduct that ENI expected of them. It also gives grounds for the recruitment of staff, and that based on these documents can perform the required staff profile ENI.

http://www.eni.com/en_IT/governance/corporate-governance.shtml



3. Reporting channels and consultation:
ENI
workers should know: the Code of Ethics, Rules, Laws and Code of Corporate Governance. So that when they see a breach should inform their supervisors or agency to which they belong, in a document and under the procedures given by the board of auditors and guard.


other hand, if staff have any questions about ethical issues that are not specified in the Code of Ethics, they may use, in the same way, with your manager or submit a paper to the board of auditors and guard .



4. General Managers, and ethics committees:

ENI has three internal committees. Which have the main role in advising and consulting. That is, they often charge to observe and control the conduct of employees and to address certain ethical issues.

These three committees are: Committee for Internal Control, Compensation and Oil-Gas Energy Commission. These committees comprise non-executive directors who are independent. Also, these committees are based on the Code of Corporate Governance.


5. Ethics consultants:

currently ENI's auditor is PricewaterhouseCoopers, this is also considered by ENI as principal auditor. During the audit, the firm has access to all information required to make the report. There is also a consulting group that helps the Board of Trustees with certain issues such as efficiency, performance evaluations and effective.


6. Training and ethical training:

ENI believes it is important to develop skills and competencies in their employees. This through various programs, which allow staff to be more creative and use the language. This program are creativity and expression are important for ENI because he considers important part of your success.


7. Programs consultation, dialogue and partnership with stakeholders of the company:

ENI is important to have some discussions with stakeholders, as they may make known their views on the different activities of which affect with the environment. For this reason, it is of utmost importance to keep their groups ENI nearby, and in this way may provide solutions that benefit the majority and not go against the interests or interest groups or the company.


8. Auditing, accounting and reporting:

The following documents are annual reports of ENI:

• 2009 Annual Financial Report

http://www.eni.com/en_IT/attachments/publications/corporate-governance/corporate-documents/Documento-Informazione-Annuale-2009-2010-Inglese-finale.pdf

• Sustainability Report 2009

http://www.eni.com/attachments/sostenibilita/allegati-sostenibilita/bilancio-sostenibilita-09-ita.pdf

These reports give us a report on the results of the company, allowing us to know how you are in operational and financial company. It also demonstrates how to get to get those results.

Below is a table on the use of management tools in ENI: