Free Case Study
Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free
National Cultures, Corruption Practices and Corruption Indices Cont...
The construction industry stands at the top of the list, in both bribing public officials and state capture. They fall in the 'bribes are almost always paid' category according to the index and has a notorious history of corruption. This vulnerability of construction industry to corruption has got particular reasons. Construction has been the most corrupted sector since TI started publishing BPI reports. The net work activity and the specially designed capital structures make the construction industry extremely prone to corruption and corruption increases the cost of capital in construction industry
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With the awareness that corruption spoils both image and profitability of the very foundations of
the business, many companies have initiated several company-wide ethical codes,
sensitizing the
employees to the far-reaching consequences of corruption and training them in carrying out critical
tasks that have public/government/bureaucratic touch points. The four principles - Integrity,
Responsibility, Compassion and Forgiveness14 - are essential for sustained personal and
organizational
success. While emotional intelligence helps in personal success, it is moral intelligence that contributes
to professional and corporate success, by guiding individuals to apply universal human values to their
personal goals. A morally intelligent action will surely bring in both personal satisfaction and professional
rewards. Though moral intelligence doesn't give immunity to the company from business-related
issues, the company would definitely benefit from it as it assures a long and positive stay in the
business. Moral intelligence would never allow an individual to involve in an unethical practice,
whether it is in life or business. And this is what Fluor Corp., a company renowned for ethical
practices in construction industry is trying to install in its employees.
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Fluor Corp.'s ethical business practices and fight against corruption gained momentum when Boeckmann, stood upright on his values to fight corruption in the business. When Boeckmann joined Fluor Corp. in 1974, he was posted in South Africa where he witnessed his supervisor getting arrested for selling company materials for a personal profit. Over the years in the company, though he worked with all his might to make Fluor Corp. corruption-free, he has not succeeded to his liking. After becoming the chairman and CEO of the company in 2002, he led the company in the fight against corruption. Since 2003, Fluor Corp. had been in the forefront of the fight against corruption, taking initiatives in anti-corruption activities and educating its employees to be ethical. Coming heavily on corruption practices in business, Boeckmann said in his speech at Ethics and Compliance Officer Association (ECOA) annual meeting on ‘Business Ethics and Compliance Conference' that, "This is an issue we’re absolutely passionate about. Corruption has a corrosive impact on market opportunities and the general business climate. It deters investment, curbs economic growth and sustainable development, distorts prices and undermines legal and judicial systems. Regrettably, this situation is endemic in many areas of the world. It is our responsibility and obligation to our stakeholders and the global community to do what we can to mitigate this challenge."15
14]"Linking strong Moral Principles to Business Success", http://knowledge.wharton.upenn.edu/article.cfm?articleid=1264, November 21st 2005
15]"Beyond Passive Compliance: A Proactive Approach to Reducing Corruption", http://www.fluor.com/ SiteCollectionDocuments/in_ECOA_speech.pdf
