Identify the specific policy, ethical rules, and legal rules James violated
James is not accountable to the people that work under him, which is clearly shown by his actions. He has no respect for procedures and protocols that stipulate how contracts are to be awarded. He is using his brother-in-law’s company to present false data for his gain. This is ethically wrong because the company will invest in a venture that is not viable. James has directed Nubrio to choose NDC to do data gathering and analysis. Nubrio has not looked at the company’s performance records, and this violates the company’s policies. Halbert and Ingulli (2011) argue that James’ involvement creates a conflict of interest because he is in charge of the project (p. 224). James has also canvassed for NDC; an interested party in the process which shows he practices favoritism and nepotism. Therefore, he is not supposed to choose his brother in -law to do the work. His actions are corrupt because he has abused the power the company has given him, which is an offense under the law.
Describe what Nubrio should have done when asked to perform a questionable task with a vendor that had not gone through the company’s strict accreditation process for vendors
Nubrio should have informed James of policies and procedures that need to be followed before a contract is awarded. Nubrio should also have told James that it is against the firm’s policies to canvass for a prospective contractor to be given preferential treatment before and during the bidding process. Nubrio should not have allowed James to compromise the company’s bidding procedures for vendors. Nubrio should have informed James that NDC needs to apply formally for the contract. Nubrio should have asked his company to publish and air adverts, informing all interested parties to bid for the contract. Nubrio should have written a letter to his seniors to report the wrong actions done by James so that corrective measures could be taken. The company would have had time to assess the ability of each bidder to do the project according to its standards (Halbert & Ingulli, 2011, p. 227). The company with the best bid would have been chosen to do the contract, after showing evidence that it has the technical competence needed to accomplish the project. This process would have allowed the best contractor to be chosen based on his merits and ability to do the project.
Discuss whether you believe Nubrio will come to regret having left this contract without a paper trail
Nubrio will regret it because he is likely to be made the sacrificial lamb should anything go wrong. He did not follow the company’s strict accreditation process for vendors, before awarding the contract to NDC. He has allowed himself to be misled by James. Nubrio does not know if, NDC will do the project by the high-quality standards set by the company. NDC is likely to put the marketing campaign at risk because the data it is about to present does not reflect the true situation of the market. Nubrio’s actions will make the company invest in products targeting a new market base that does not have enough growth potential. Nubrio’s laxity has severely affected his professional standing. He has failed to follow established procedures by awarding the contract to NDC without any assessment being done. He needed to be cautious because James had actively canvassed for NDC to be selected without proper procedures being followed. The lack of a paper trail will cause Nubrio and the company a lot of problems. There are no clear terms that stipulate what NDC should do to fulfill its obligations as the contractor of the project (Halbert & Ingulli, 2011, p. 230). The NDC is likely to fail to deliver on the company’s expectations, and this will be detrimental to Nubrio’s career.
Describe the implications of a major stockholder and founding member violating company rules, procedures, and processes
A stockholder who contravenes rules and procedures in a firm lacks moral character and integrity. Stockholders, just like employees, must comply with all rules, and policies which determine how a company operates. If a stockholder acts in a manner that violates established rules, the company’s reputation will be damaged. A stockholder who uses his position to benefit himself at the expense of the company violates established rules. This damages the integrity of the stockholder and the reputation of the company. Shaw (2010) argues that a stockholder who violates company rules puts its stability at risk (69). The actions of an irresponsible stockholder can cause a company to collapse or experience major losses. This can cause a company’s employees to lose faith in its leadership, leading to low morale and poor performance. A dishonest stockholder can be subjected to disciplinary measures by the management, which can result in acrimony. If a stockholder has violated other laws, the company could be sued by aggrieved parties. The company may end up paying a lot of money in form of legal settlements. This is likely to erode the trust customers, and other stockholders have in the firm. Poor adherence to established policies by a stockholder makes it difficult for a firm to assess its performance (Shaw, 2010, pp. 72-74). This makes it hard for a company to plan on how it is going to achieve its objectives.
References
Halbert, T., & Ingulli, E. (2011). Laws and ethics in the business environment. Mason, OH: Cengage Learning.
Shaw, W.H. (2010). Business ethics: A textbook with cases. Mason, OH: Cengage Learning.
Whitman, Mattord. (2011). Readings & Cases in Information Security: Law & Ethics: Custom edition (1st ed.). Cengage Learning.