Consultant’s report

Running head: Consultant’s report 1
Running head: Consultant’s report
Institution
Date

Consultant’s report 2
Consultant’s report
Introduction
Business ethics is an essential contemporary topic in the leadership and management of people
since it enables managers and leaders to carry out their roles within the confines of what is
described by the organization as morally ethical (Crane, & Matten, 2016). It equips managers
and leaders with pertinent skills which they require to ensure ethical behavior in every echelon of
the organization. When organizational stakeholders such as the employees conduct themselves in
an ethical manner, positive public image of the entire enterprise is enhanced (Trevino, & Nelson,
2016). In this particular report, the potential risks that would affect the new PA in terms of its
accountability, transparency of operation and employee ethical conduct will be analyzed.
Besides, the report will develop an options assessment of how a suitable ethical standard relating
to accountability, transparency and employee conduct is to be achieved by PA and monitored in
practice. A critical evaluation and justification of the sort of leadership model and philosophy
that would best support a sustainable ethical organisation will be done.
Task 1
Earlier this year, Equifax Inc. (a credit-reporting firm) found itself in a very shameful corporate
scandal whereby personal details of around 143 million of US clients had been exposed. Among
the customers’ sensitive information which the Company leaked include credit card numbers,
security numbers, birthdays, drivers’ license numbers, and addresses. Wells Fargo, also, in 2016
indulged in fraudulent activities wherein they created over 1.5 million counterfeit accounts and
in the process produced half a million illegal credit card applications. Pearson, (2017) states that

Consultant’s report 3
organizations should undertake all activities within the stipulated confines of their business
ethics. Clearly, in these two scandals, this was not the case. Both Equifax Inc. and Wells Fargo
indulged in unethical activities which were risking critical details of customers who had
entrusted their information to them. Apparently, after these scandals both firms exposed
themselves in various risks which would affect their accountability, transparency, and employee
ethical conduct.
In a similar manner, the new Procurement Agency (PA) is vulnerable to some risks in terms of
its accountability, transparency of operation and employee ethical conduct. PA, for instance is
susceptible to a number of purchasing risks in its procurement cycle. If the Agency indulges in
any ethical scandals it will not be able to control the information concerning its purchase orders
in a certain format like Excel for review purposes because it will be trying to hide some filthy
information. Equifax, for instance after the aforementioned scandal could not relay its
information for public use since it was attempting harder to hide its fraudulent activities. Due to
its inability to control its procurement information, the PA will not ensure a smooth process for
every single order, case or follow up. In short, its accountability will be greatly hampered
(Bolandifar, Kouvelis, & Zhang, 2016). Besides, the PA might in some cases fail to deliver the
required materials promptly or on time. Again it may not be able to clear the suppliers’ invoices
on time, something delay his/her money causing stopping further business with the PA. Such
risks would occur in case the PA fails to observe set business ethics and thus negatively impact
on its transparency of operations in the long run. Same case happened to Wells Fargo after the
incident making many organizations and individuals to terminate their contracts with this
company. Deplorable employee ethical conduct will lead to occurrences like under-productivity,
poor employee turnover, and inequality. These are some of the risks which befell Equifax and