Halliburton

Halliburton

Introduction

There are many factors that corporations and businesses will face as long as they are in business. Businesses also have certain responsibilities that they need to address during their course of doing business. Halliburton is a company in UAE that faces such issues and requires management to act in order to address certain aspects of business during their planning process. This paper will address legal, ethical, and social responsibilities that Halliburton has faced and how these factors impact management planning. It will also address certain factors that the strategic, tactical, operational, and contingency planners have to face and plan for.

Management Planning at Halliburton/KBR

Halliburton and its subsidiary, Kellogg Brown and Root (KBR), provide many products and services to the oil and gas industries throughout the world. Halliburton provides services throughout the entire lifecycle of oil and gas production facilities. They begin with the exploration for natural resources, they then construct facilities, maintain them, redesign facilities, and ultimately will aid in their abandonment. Halliburton provides almost every service know to the oil and gas industry and have been in this business since 1919. (Halliburton, 2006) Their subsidiary, KBR, is the branch of Halliburton that specifically focuses on engineering and construction. (Halliburton, 2006) KBR has become a well known name because of their contracts in the Middle East in support of the War on Terror.

Legal

Halliburton and KBR have both seen their share of legal troubles. In 1998, then CEO Dick Cheney negotiated a deal to buy a competitor named Dresser Industries for the sum of $7.7 billion. (Baue, 2003) The acquisition was a seen as a smart move by the company up until December 2002. In December 2002, Halliburton was responsible to pay $4 billion to settle asbestos claims that had been held against Dresser Industries. (Baue, 2003)This seems to be one of he matters that was overlooked at the time of the acquisition. Although Halliburton themselves did not have anything to do with the asbestos claims, the responsibility for the claims became theirs once they purchased the company. Such logistical moves may come with a heavy burden to carry. I am sure that the company had seen this risk and decided to take it anyhow. Management and planning at the strategic level need to understand that they gamble when they make purchases like these. Although buying a competitor out does increase your market share, having to take responsibility for their financial burdens might not be the wisest move. Management needs to take these factors into consideration and analyze whether they should hold off on any purchases until any preexisting legal issues are resolved.

Ethical

Halliburton and KBR have also had their share of issues with respect to ethics. Halliburton led their investors believe that their stocks were worth more than they actually were between June 1999 and May 2002. (Baue, 2003) Halliburton needs to understand that they have a responsibility to their employees and to their investors. By artificially inflating the stock prices it gives the employees and investors a false outlook on the ...