Corporate Scam, Indictment and Reform: Louis Berger’s Values-based Approach to Reform

Malla Praveen Bhasa

Indian Journal of Corporate Governance, 2016, vol. 9, issue 1, 83-95

Abstract: Abstract Corporate improbity and greed invariably impact a multitude of stakeholders both within the rogue corporation and beyond. Codes of conduct when breached violate the principles of morality and cause a lot of dismay to those impacted. A novice student of corporate governance might struggle to articulate the boundaries of morality. In situations where there is a conflict between corporate morals and corporate profits, what should take precedence – values or benefits? Louis Berger is a US based international consulting behemoth that provides infrastructure and economic development services across 80 countries globally. Embroiled in a whistle blower’s litigation and subsequent investigation by the Department of Justice it was caught defrauding the US taxpayers for well over a decade between 1997 and 2007. The company is a good example of how a global corporation enmeshed in indictments of wilful fraud by its former CEO and reckless violation of penal statutes by its senior employees is trying to reinvent itself to become a model corporate citizen. Its success or failure in becoming so will largely depend on the robustness of its corporate governance mechanisms and its willingness to leave behind its historic blunders.

Keywords: Louis B erger; False Claims Act; USAID; Foreign Corrupt Practices Act; fraud; corporate reform (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ijcgvn:v:9:y:2016:i:1:p:83-95

DOI: 10.1177/0974686216635790

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