Make sure that you understand the question that u must to answer. deconstruct the question into three or 4 simpler questions that you can address in order to come to a conclusion on this issue.

use 150 words of this assignent to make 3 recomendations to BAE (see attachement) on its code of corporate social responsibility.

read the attached articels to start with….

BAE chief may face grand jury as US takes tougter stance

Mike Turner, The BAE System chief executive, is likely to be forced to appear before an American grand jury if the defence company continues to drag its heels over Department of Justice (DoP) bribery investigation, a former head of the US government department investigates BAE system has said.

Joshua Hochberg, the former chief of the departments fraud section , has also said that if BAE is foud to have used bribery to secure contracts, it would be compelled to repay billions od dollars in profits derived from those corrupt practices.

the DoJ is seeking to establihed wheter BAE bribed Saudi Arabian officials to win the so-called al-Yamamah arms contracts, which date back more than 20 years. two years ago , mr turner estimated that BAE and its predecessor British Aerospace had erned Pounds 43 billion from the contracts.

speaking to The Times, Mr Hochberg, who was responsible for investigating all branches of the foreign Corrupt Practices Act, explained that the recent heavy-handed behaviour of investigators indicated A serve lack of co-operation by BAE”.

He added : If they do not change their approach and the DoJ does not secure more active co operation, it will subpoena records and witnesses and put him in front of grand jury”.

if an individual is forced to appear before a grand jury, they are required to give evidence under oath and are not allowed a lawyer.

Mr Hochberg now a partner at McKenna Long and Aldridge, a Washington corporate law firm noted that BAE is found to have bribed officials, it will probably demand the return of net profits earned from the al-Yamamah deals, which were signed under the Thatcher government.

Last week it emerged that both Mr Turner and Sir Nigel Rudd a non executive director of te defence group, were separately detained as they travelled through Houston, Texas and Newark, New Jersey airports. Both were asked to hand over electronic equipment and were issued with new subpoenas.

both Mr hochberg and Alexandra Wrage, president of Trace International, a non-profit group that specialises in anti-bribery cases, have argued that the tough stance of the DoJ is highly unusual. They said that companies that are being investigated by the DoJ tend to develop a dialogue with the Government department and co-operate by supplying the docummentation requested, making subpoenas and detensons unnecessary.

Should the DoJ find that BAE Systems bribed officials to secure arms contracts, it would impose fines, claw back net profits derived from corrupt practices, and crucially ban the company from bidding for contracts from the US government. More than half of BAEs business is derived from America.

Separetley, the DoJ can compel BAE Systems to provide documents and witness statements so that it can pursue individuals that it suspects of having been involved in crimianl activity.

A spokesman for BAE declined to comment yestarday on Mr Hochbergs remarks but pointed to its statement published on Monday that read:The company has been and continues to be in discussion with the DoJ concerning the cubpoenas served in the course of its investigation”.

BAE has denied any wrongdoing.

Jagger, S. (2008) , BAE chief may face grand jury as US takes toughter stance The Times, 21 may, p. 64
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