The Eradication of Corruption at Fluor Corporation
By
Marcus Youngquist
15 Jul 2009

When thinking about what is the most important initiative for Alan Boeckmann; CEO of Fluor Corporation, can take to eliminate corruption in his company many initiatives come to mind. The Fluor Corporation delivers engineering, procurement, construction and maintenance services to 600 clients on 1,000 projects in 85 different countries. (1) When a company of that size and magnitude tries to combat something such as corruption which has been present in the world for centuries, it is without a doubt an uphill battle. I feel that Boeckmann can be successful in corruption free contracting if the right steps continue to be taken. The fight against corruption needs to happen on multiple levels; financially, politically, and intellectually. One of the first steps in eradicating corruption is on the financial front. Fluor can do this by continuing to support leading advocacy groups. (1) There is the Organization for Economic Cooperation and Development (OECD). In 1998 more than 30 nations, including all of our major trading partners, implemented rigorous anti-bribery commitments mandated by OECD. (1) One company that pioneered the private sector getting involved with anti-corruption acts is the the Partnership Against Corruption Initiative (PACI). (1) Each signatory company agreed to maintain a zero tolerance policy towards bribery and corruption. Along with this a broad based anti-corruption program was implemented to guide the behavior of employees.(1) These two groups have set a foundation for the most basic form of consequentialism to be implemented. There is power in numbers. The more countries and corporations we can have signatory to these types of advocacy groups the more of a Utilitarian way of thinking will come about. More people will be happy and benefit from not taking corruption versus going against a powerful organization of countries and organizations that could possible sanction you for not resisting the same temptation to corruption that they all had. The consequences would be much greater for a company like Fluor to engage in corruption. This also brings up Deontological Ethics. Boeckmann must continue to resist the justification of corruption by stating employees have a right to keep coming into work, therefore the company has a duty to supply work for them to do, in turn doing whatever it takes to get contracts for their employees to work on.

Another initiative for the eradication of corruption within Fluor is politically. Boeckmann needs to continue encouraging our governments to stay focused on corruption reform. (1) With our government standing it’s ground on corruption to the world it sets a standard for companies like Fluor to live by. This plays a big role in cultural ethics. Fluor doing business in over 85 different countries cultural ethics play a big role. What constitutes bribery in one country is simply doing “good business” in other countries. (3) There are many countries where public officials are under paid and expect to make that up from the private sector by getting hired by outside companies. (3) Countries like Japan who have ex-government officials that expect to get these contracts from companies like Fluor. However when refused Fluor is looked upon as rude, culturally unacceptable and immoral for not retaining these government officials. (3) Another way that politics is a good initiative for Boeckmann is the role that corruption plays with terrorism. Corruption often supports the repressive societies that breed discontent and terrorism. (1) That is why political and economical develop continue to be our best response. (1) The utilitarian way of thinking here is, to choose against obtaining unethical contracts in fear of supporting terrorism. In an extreme case the good is the company gets a contract, but the bad is the bribe that it took to get that contract could possibly fund a terrorist act that kills people. Here the bad obviously out weighs the good. The cost benefit analysis for Boeckmann in this situation is to avoid the option for corruption with his contracts. The last political point is the Deontological model. “Officals who take bribes are stealing from their own people. Not just money, but governmental legitimacy and hope for a better future.” (1) A deontological person would say that it is that citizen’s right to have a legitimate corrupt free government and that it is Fluor Corp. and the host country’s duty to give that to them.

The last part of the Boeckmann’s initiative should come from an intellectual front. Fluor Corp. needs to continue to contribute knowledge and practical experience to the front-line efforts. (1) Boeckmann states, “By changing the way we ourselves operate. Our commitment must start at home- with zero-tolerance polices on bribery and effective programs to combat corruption.” (1) The foundation for this would simply be the same as the situation of the company getting sanctioned by other organizations or countries. Here it is all internal with Boeckmann at the top, sanctioning anybody that expresses a corruptive act. With this type of system in place, the employees who would potentially be susceptible to corruptive acts will take a utilitarian way of thinking by doing a cost/benefit analysis. Then realizing that the benefit would not out weight the cost. Boeckmann has also pioneered having a 3rd party involved with business to show that Fluor Corp. is “walking the talk.” (1). Having lawyers to incorporate anti-corruption polices with bids that are being submitted to development banks are one example of this system. (2)

In conclusion, the fight against corruption needs to continue to happen on multiple levels for Alan Boeckmann; financially, politically, and intellectually. There are various forms of cultural ethics, utilitarianism and deontological ethics that play a role in his company’s actions and the people around him. They are what will make the difference in Fluor Corporation having ethical contracts and allowing Alan Boeckmann to continue to succeed at his dream of a corruption free corporate world. “So many of our dreams at first seem impossible, then they seem improbable. And then, when we summon the will, they soon become inevitable.” Christopher Reeve (1)

1.) Boeckmann, Alan. Guest Lecture, “Change”. Briefing Series Luncheon. Cox School Of Business Management. Southern Methodist University, Dallas, Texas. 11 May 2007

2.) MINA KIMES. "Fluor's Corporate Crime Fighter. " Fortune 16 Feb. 2009: ABI/INFORM Global, ProQuest. Web. 18 Jul. 2009.

3.) Lewis, J. Normative Ethics Lecture Video. Business Ethics Module One. TUI University.