Wednesday, June 30, 2010

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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.TeorĂ­as 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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