Task Type: Individual Project

[Name of the Instructor]

[Date of Submission]

Abstract

This assignment is based on the analysis of the two important ethical concerns faced by one of the largest IT solution company 'ECG' in the form of acquisition of Government Allies Inc. and the competitive bid process of X TelCo.

Table of Contents

Introduction1

Discussion2

Government Allies, Inc. Acquisition2

Consulting Contract with X Telco4

Conclusion5

References6

Task Type: Individual Project

Introduction

Ethics are important in every aspect of life, so is the case with a business. These codes are basically adopted by the organizations so as to make their members understand the difference between right and wrong practices and thus enable them to apply the understanding to the decision making process. Documents implication of ethical codes generally takes place at three different levels: business ethics codes, codes of conduct for employees, and codes to be followed in professional practice (Flores, 1998). ECG holds a strong position as one of the largest firm to be considered for IT solutions, supply chain management, customer relationship management and strategic consulting. The company has experienced fueled growth as a result successful acquisitions of respected consultants who could quickly increase the value of the company. Just like many other aspects, the company is required to focus on the ethical code standards in the process of IPO, acquisitions of a company, or at the time a bid is conducted so as to purchase some giant organization. The basic objective of this assignment is to review the ethical standards of the company and apply the understanding of these standards to the violation of company's Code of Conduct in two of the important cases (that is the intended acquisition of Govt. Allies and a rewarding bid for an IT consulting contract with X Telco). The issues will be reviewed with the help of leadership and the guidelines of Ethics Review Committee by providing support to the arguments with the help of ethical and business reasoning.

Discussion

Just like all other businesses, ECG is abided by the rule to follow various laws that relates to the domestic and international transactions. The two issues that have been discussed at another meeting of Ethical Review Committee have far reaching ethical implications. In this section of assignment each of the issue is analyzed so as to understand the ethical standards violation in each of the case.

Government Allies, Inc. Acquisition

The acquisition of Govt. Allies by ECG serves as an influential market expansion opportunity for the company. However, as soon as the due diligence procedure of acquisition is completed by the company, the matter was revealed that the ECG's executive and spouse has an unrevealed financial interest in the acquisition process. The whole scenario highlights that the company will be clearly facing an issue of conflict of interest and on behalf of the senior executive, insider trading may be involved in the acquisition process.

A conflict of interest usually takes place when an organization seems to be involved in multiple interests (for instance, which firm to be acquired) one of which could have a corrupted impact on ...