More BAE than CPR this time:
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3878433.ece
BAE Systems, Europe's largest defence contractor at the centre of
corruption claims over its arms deals with Saudi Arabia, has been
urged to review business practices and install tougher anti-corruption
measures.
An independent report by Lord Woolf, the former Lord Chief Justice of
England and Wales, recommended 23 measures which would improve
transparency and raise ethical standards.
Lord Woolf warned in the report: "Despite the progress made, the
company has a substantial task ahead if it is to meet higher
standards."
The report recommends BAE must commission an external audit of its
ethical business conduct and its management of reputational risk
within three years and further reports should be commissioned at
regular intervals thereafter.
The group needs to develop a code of business ethics and the board's
Corporate Responsibility Committee should take charge of ethical
conduct and reputational risk.
However, the commissioning of the Woolf report has been heavily
criticised for the limitations of its scope.
It has examined BAE's current practices, but did not look at the Saudi
contracts into which the Serious Fraud Office conducted a bribery and
corruption investigation. This investigation was ordered to be dropped
by the Government on the grounds of national security.
The High Court ruled last month that the Serious Fraud Office acted
unlawfully in its decision to drop the investigation. The SFO is set
to take the matter before the House of Lords.
Full article here:
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3878433.ece
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