Non-Subscriber Extract
Woolf report makes 23 recommendations to BAE Systems
By Gerrard Cowan
07 May 2008
Lord Woolf has made 23 recommendations for strengthening the ethical approach of BAE Systems - including the adoption of a global code of business conduct and the appointment of a senior executive to oversee its implementation - in a report that was published on 6 May.
Lord Woolf of Barnes chaired a committee that was established in the wake of "allegations of bribery and corruption in connection with the award of defence equipment contracts in a number of countries", the report stated. These allegations were focused mainly on the Al Yamamah deal between the UK and Saudi Arabia.
The committee was tasked to "identify the high ethical standards to which a global company should adhere; identify the extent to which BAE Systems ... currently meets these standards; and recommend the action that the company should take to achieve such standards".
BAE Systems' board has undertaken to implement all of the recommendations, which is "an unprecedented step for a major company", according to the committee.
"The committee's publication of this report is an important step towards BAE Systems' objective of achieving benchmark standards of governance in the conduct of its day-to-day business," said Dick Olver, the company's chairman.
The Woolf report made 23 recommendations, including the formulation of a comprehensive global code of ethical business conduct. This should reflect "the high standards of ethical business conduct consistent with the aspiration and intention to become a leader among global companies", the report stated.
Every company employee should undertake a training programme as part of the implementation of the global code and a senior executive should be given responsibility for the ethics programme, it added.
Image: Royal Saudi Air Force Tornado IDS aircraft: Tornado supplies to Saudi Arabia were included in the Al Yamamah deals (BAE Systems)