Free Case Study
Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free
Global Fight Against Corruption: Setting Ethical Standards Cont...
Led by Boeckmann, PACI is the only global, business-driven, multi-industry anti-corruption initiative. More than 140 PACI signatory companies have come forward from various sectors - energy, engineering and construction, mining and metals, professional services, food and beverage, chemicals, consumer goods, logistics and transport, insurance and healthcare industries, all pledging to adhere to the principles of 'zero tolerance' on corruption and ethical employee behaviour. The signatory companies are supposed to adapt certain procedures and are encouraged to submit an update on progress within 2 years of signature. PACI plans a verification programme to ensure that all the signatory companies stick to the standards. However, despite Fluor Corp.'s elaborate anti-corruption and ethical practice initiatives, some companies didn't buy Fluor Corp.'s anti-corruption philosophy and therefore, didn't come to the table to sign the PACI. "Some believe that's just how the game's played and that we’re not being realistic," 25 exclaimed Boeckmann. However, reacting to Fluor Corp.'s anti-corruption initiatives, many firms had come forward to put effort in eliminating corruption.
|
Fluor Corp. is working closely with American Society of Civil Engineers (ASCE) on action against corruption. Boeckmann is the honorary chair of Global Anti Corruption Education and Training Program (ACET), an anti-corruption initiative by a consortium of 12 cooperating agencies, including ASCE. The focal point of this programme is 'Ethicana', a movie on bribery and corruption in global construction industry. The movie starts with the opening statement "Corruption in the Global Construction industry is a huge economic burden estimated to exceed $500 billion annually"26 and shows what corruption is, how it takes place and what can be done about it. Presented in an HD-DVD format, it dramatises typical bribery situations on construction projects. It also contains materials related to train the trainer’s instructions, employee/student takeaway materials and classroom discussion topics. ‘Ethicana’ provides a complete anti-corruption awareness and education package. It was filmed at Fluor Corp. headquarters and was made available to various business organisations and universities worldwide, with other complementary materials, completely free of cost. Fluor Corp. Foundation provided $100,000 to help endorse the movie and develop accompanying training materials. |
|
But however well the organisation tries to adapt a global ethical system, there can be flaws in the development of these principles. With 40,000 employees scattered around the world, even Fluor Corp. faces two or three misconducts a year, though it has a very effective procedure to stop corruption. Despite Boeckmann's tireless efforts, the company admits that it uncovers inappropriate behaviour every 18 months or so. Do such episodes pose a threat to Boeckmann's credibility? Not seemingly, many ethical vocalists admit considering the fact that Boeckmann sticks his neck out and puts himself on the line of fire. For someone who wants to lead from the front, the aberrations do not seem to deter. After all, "the first thing that companies should do is send a message from the top. Fluor Corp. has put its face to the world when its peers haven't",27 observed Alexandra Wrage, head of TRACE International, a non-profit that does compliance training.
25]Roner Lisa, "the big interview, Alan Boeckmann, Chief Executive, Fluor - Choose honesty, and get more business", http://www.ethicalcorp.com/content.asp?ContentID=5135&ContTypeID=7, June 5th 2007
26]"New Film 'Ethicana' Helps Combat the Corruption", http://content.asce.org/ethicana/ethicana.htm
27]Kimes Mina, "Fluor's Corporate Crime Fighter" Fortune, February 16th 2009, page 22
