SuttonA I R B U S ’ I N V O L V E M E N T I N B R I B E R Y A N D C O R R U P T I O N
4.0 NEGATIVE IMPACT OF BRIBERY TOWARDS AIRBUS TABLE OF CONTENTS 6.0 HOW AIRBUS RECOVERED FROM THE INCIDENT 15 20 19 22 01 5.0 LESSON LEARNED FROM THE AIRBUS CASE 7.0 CONCLUSION 3.0 INVESTIGATION OF THE CASE 10 2.0 FACTORS OF THE DOWNFALL OF AIRBUS 08 1.0 INTRODUCTION 03
02 MATHU MITHA A/P K BALACHANDRAN ONG SHAN YING AINUL AISHIKIN BINTI ARIFF ZAIDI 299948 297304 298948 300435 298769 297298 NEOH XIN YING NURFAQIHAH AWADAH BINTI MOHAMAD SALHADI LUTFI HAKIM BIN MOHD NAZRIN Preface NUR FARAH AIESYA BINTI ZULKIFLI 297335 NURNA AISYA BINTI SAPRAWI 297317 LAHVANYA RAJENDRA 297246
1.0 INTRODUCTION Meanwhile, corruption is the act of being unlawful, unethical, or dishonest behavior, particularly from those in positions of authority. (Cambridge, 1995). Giving or receiving any form of compensation, whether in cash or any other form for completing a task related to one’s job description is considered corruption. (SPRM, 2023). In other words, corruption is the abuse of power for personal gain or the manipulation of the systems and processes for illegitimate purposes. According to the Cambridge dictionary, integrity is the trait of being truthful and possessing firm moral convictions that you won't compromise. (Cambridge, 1995). Integrity refers to the quality of being honest, principled, and morally upright. This includes adhering to strict moral principles and values even when facing hardships and temptations. Individuals and organizations with integrity demonstrate consistency in their action to ensure that their actions are consistent with established ethical standards. Integrity fosters trust among stakeholders, fosters accountability, and contributes to the overall stability and reliability of the organization. 03
1.0 INTRODUCTION Bribery, extortion, fraud, cartels, misuse of authority, embezzlement, and money laundering are examples of corruption. In most jurisdictions, these actions will typically be considered crimes, though the exact definition of the crime may vary. (GIACC, 2021) The payment made or received in a corrupt relationship is known as "bribery." Bribery is an act in and of itself, and it is important to recognize this as the fundamental component of corruption. A bribe is a set amount, a portion of a contract, or any other favor in exchange for money or goods that is typically given to a state official who has the authority to enter into contracts on the state's behalf or to provide other benefits to businesses, clients, or individuals. (Economic Times, 2023) 04 According to the SPRM, there are four main crimes of corruption as associated in the Malaysian Anti-Corruption Act 2009. First, the act of receiving a bribe is an offense under section 16 and 17(a) of MACC Act 2009. Second, the act of offering a bribe is an offense under the section 17 (b) of MACC Act 2009. Third, intending to deceive is an offense under the section 18 MACC Act 2009. Lastly, abuse of power or position is an offense under section 23 MACC Act 2009. (SPRM, 2023) Integrity and anti-corruption efforts are important elements of ethical governance, business practices, and social welfare. These concepts are interconnected and play an important role in maintaining trust, transparency, in various sectors of society including business, government and civil society.
05 1.1 BACKGROUND OF THE AIRBUS COMPANY Airbus. Who are they? What do they do? 05
In 1970 a collaboration called Airbus Industry was established in Europe to meet the market demand, for jetliners with short to range capabilities and high passenger capacity. It consistently holds a position in the jetliner industry competing directly with the American Boeing Company as one of the two producers of commercial aircraft worldwide. The majority ownership of 80% is held by Germany, France and Spain through their European Aeronautic Defence and Space Company (EADS). The remaining 20% is owned by BAE Systems, a company. Alenia from Italy and Belairbus, from Belgium are associated members sharing risks in programs. The companys offices are located near Toulouse, France. Airbus Industry employs more than 50,000 people. Employees work directly on Airbus aircraft in France, Germany, Spain, the United Kingdom and China, while others work in engineering, sales, training and other jobs around the world. This consortium has over 1,500 suppliers and maintains cooperation agreements with numerous companies in many countries. About onethird of Airbus parts are made by American companies. Most of the subassemblies are manufactured by the partner companies in their own facilities. For instance, the tail components of all Airbus aircraft are made in Spain, whereas the wings are made entirely in the UK. To reach final assembly lines in France, Germany, and China, subassemblies are delivered by road, rail, barge, ship, and air (using a special Airbus Super Transporter Beluga jet). While the A318, A319, and A321 aircraft will be assembled in Hamburg, the Airbus A320, A330/A340, A380, and A350 aircraft will be completed at a complex near Toulouse. Furthermore, Airbus declared in 2012 that the A320 would be produced in Mobile, Alabama beginning in 2015. The A320 has been assembled in Tianjin, China since 2008. The Airbus programme began in 1965 when the governments of France and Germany discussed organising a consortium to build a high-capacity, short-haul jet transport in Europe. The next year, officials from France, Germany, and Britain announced that a study would be carried out by Sud Aviation (France), Arge Airbus (an informal consortium of German aerospace companies), and Hawker Siddeley Aviation (Britain) into the development of a 300-seat airliner for the short-haul sector. The A300 was originally intended to have 250 seats, but due to the shortage of engines that could match Airbus's criteria, the design was reduced back. 06
The A320 programme, initiated by Airbus in 1984, aimed to create a narrow-body, short- to medium-range aircraft with several technological advancements, the most significant of which was the use of computer-based flight controls that were fly-by-wire (i.e., connected electrically instead of mechanically). The A320 entered commercial service in 1988. In response to the jetliner's great success, the consortium produced the A321 by stretching the fuselage and the A319 and A318 by shortening it twice, respectively. 07 During the early years of the corporation, the governments of the participating nations provided Airbus with program-launch assistance in the form of repaid loans for the development of each new aircraft. Airbus projects were entirely financed by internally generated cash flow and external commercial sources with the introduction of the A321 in 1989, progressively lowering the share of the cost paid by governments. Following Boeing's lead, Airbus joined the business jet market in 1997 with the introduction of the Airbus Corporate Jetliner programme, which was based on the A319 aircraft. A subsidiary named Airbus Military Company was founded two years later to work on the A400M military aircraft.
A short intro or kicker of the article will go here. This part acts as a bridge between the headline and the article itself. FLIGHT DECK: SOLANA AIRLINES BY MARGARITA PEREZ PHOTOGRAPHY BY FRANCOIS MERCER 09 As a major design and manufacturing of commercial aircraft, Airbus often faces many challenges. Anything that happens in the world is likely to affect the company. However, Airbus also has many backup plans to face these challenges. Shown below are the factors that cause the downfall of Airbus since it was established. 2.0 FACTORS OF THE DOWNFALL OF AIRBUS 08 Pandemic Covid-19 One of the reasons for the collapse of Airbus is the uncontrollable Covid-19 epidemic(Why the Airbus A380 Was Not a Success - Travel Radar, 2021). The Covid-19 epidemic not only affects the economies of various countries, but also affects aircraft routes and airlines. Airbus lost a total of 1.1 billion euros in revenue during the epidemic(Chadwick, 2021). This is because due to the impact of the epidemic, all flights have been banned from taking off, and global travel has decreased, resulting in a decrease in the company's aircraft delivery. After the end of the epidemic, the flight cannot be immediately restored to the pre-epidemic state(Chadwick, 2021). The time of unblocking varies from country to country, which also affects the income of Airbus after the epidemic. Airbus said that the epidemic will continue to affect its business and bring uncertainty. In order to reduce the burden on the company, Airbus laid off 15,000 employees during the epidemic(Chadwick, 2021). Airbus is not expected to return to pre-epidemic levels before 2023, and at worst, this situation will continue until 2025(Airbus Plans to Further Adapt to COVID-19 Environment | Airbus, n.d.).
09 Rising fuel prices after 9-11 The 9/11 terrorist attacks had a great impact on the United States and its airlines. The attack caused many airlines to suffer heavy losses, some airlines went bankrupt, and many travel routes disappeared. Airbus also suffered an unexpected blow. This is because the price of fuel was rising after the crisis(Why the Airbus A380 Was Not a Success - Travel Radar, 2021). The aircraft produced by Airbus consumes a lot of fuel. For example, Airbus A380. Before the attack, Airbus spent a lot of energy and money on the A380. After the crisis, fuel prices soared, causing the popularity of the A380 to decline. In contrast, the price of aviation fuel before the terrorist attack was $0.334 per litre, compared with $3.091 per litre in 2013(Why the Airbus A380 Was Not a Success - Travel Radar, 2021). Therefore, the sharp rise in oil prices led to the demise of the A380, which indirectly affected Airbus. Strong opponent No matter what industry you are engaged in, you will inevitably encounter strong competitors. Of course, it includes aviation services. Airbus's strong competitor is Boeing. Since the 1990s, the competition between Airbus and Boeing in the large jet airliner market has been regarded as a double-headed monopoly. Airbus has produced many aircraft, which will inevitably be compared with Boeing. Take the Airbus A380 and Boeing 787 Dream Aircraft as examples. Boeing's strategy of focussing on the 787 Dreamliner (a smaller and more feature-rich aircraft) is in sharp contrast to Airbus' bet on the giant A380. 787 better meets the changing needs of point-to-point travel(JH, 2023). In addition, due to the large size of the A380, many airlines refuse to order because they need a larger boarding gate, so the A380 can only land at 140 selected airports(Why the Airbus A380 Was Not a Success - Travel Radar, 2021). It is not only the comparison between the two aircraft, but also the characteristics of the aircraft produced by the two companies, such as the passenger capacity and flight range comparison, the size of the aircraft and more.
12 INVESTIGATION OF THE CASE This action, which is referred to as the largest corporate corruption, succeeded in driving the company's earnings to over US$1 billion (RM4.1 billion) during the course of a protracted crackdown. According to Bloomberg, courts in France, the United States, and the United Kingdom accepted an arrangement in which the European aircraft manufacturer admitted guilt and agreed to pay US$4 billion (RM16.4 billion). The documents indicate that over a period of more than 13 years, Malaysia, Russia, and China were also implicated in the crime. (Hm, 2020) According to French authorities, the plan increased Airbus SE's earnings to US$1.2 billion (RM4.91 billion). For three years, Airbus will be monitored. The report indicates that it took a full four years to successfully prosecute the case. According to the information, Airbus bribed officials by u sing middlemen to get into a new market. An estimated 2.1 billion euros (RM9.54 billion) were paid to France, 991 million euros (RM4.5 billion) to the UK (including fees), and 527 million euros (RM2.4 billion) to the US during this period. (Hm,2020) BACKGROUND OF THE INVESTIGATION AIRBUS SE bribes decision makers and government officials with an annual budget of up to US$300 million (RM1.2 billion) in order to acquire its aircraft. 10 3.0 INVESTIGATION OF THE CASE This action, which is referred to as the largest corporate corruption, succeeded in driving the company's earnings to over US$1 billion (RM4.1 billion) during the course of a protracted crackdown. According to Bloomberg, courts in France, the United States, and the United Kingdom accepted an arrangement in which the European aircraft manufacturer admitted guilt and agreed to pay US$4 billion (RM16.4 billion). The documents indicate that over a period of more than 13 years, Malaysia, Russia, and China were also implicated in the crime. (Harian Metro, 2020) According to French authorities, the plan increased Airbus SE's earnings to US$1.2 billion (RM4.91 billion). For three years, Airbus will be monitored. The report indicates that it took a full four years to successfully prosecute the case. According to the information, Airbus bribed officials by u sing middlemen to get into a new market. An estimated 2.1 billion euros (RM9.54 billion) were paid to France, 991 million euros (RM4.5 billion) to the UK (including fees), and 527 million euros (RM2.4 billion) to the US during this period. (Harian Metro,2020) 3.1 BACKGROUND OF THE INVESTIGATION AIRBUS SE bribes decision makers and government officials with an annual budget of up to US$300 million (RM1.2 billion) in order to acquire its aircraft.
3.2 EVIDENCE & WITNESSES 11 The court found that the investigation into Airbus’ bribery scheme and scandal involving five countries utilized widespread documentary evidence, and numerous witnesses were implicated, compiled over four years of forensic probing The court documents included internal emails, invoices, audit reports, and statements submitted that provided a clear picture of the complex corruption network as evidence during the investigations and trial. Moreover, the emails between high-level executives revealed that they were colluding to conceal payments and produce fake documents. The invoices detailing over $100 million in this bribery disguised as commissions and sponsorships were made through intermediaries. Audit reports highlighted the non-compliance and unqualified intermediaries appointed in violation of policies. Apart from that, Internal Airbus documents stated the details of the organizational structure, including the roles of the SMO and CDSC units, which are crucial to bribery, and were found on the Airbus website and in internal files. Compliance policies also exposed differences between the stated standards and the bribery-enabling practices used by the company. According to newspaper reports like those in The Guardian and the South China Morning Post, they contained eyewitness quotes, court statements, and blow-by-blow accounts of investigation progress pieced together from court documents
WITNESSES The Airbus bribery scandal involved numerous individuals as witnesses. Executives heading the SMO and CDSC units were directly involved in the bribery network. Executives used internal emails to coordinate bribery payments and obtain documents to disguise them. The paper mentions an email where an executive discusses presenting a bribe as a sponsorship, showing senior-level involvement. Furthermore, Individuals appointed by Airbus as ‘business partners’ have testified about receiving large illicit commissions directly from Airbus as bribes. Documentary evidence, such as bank records revealing millions in transfers to intermediary-linked accounts and properties purchased with questionable funds, could have supported claims. One of crucial witnesses in this bribery scandal were executives from airlines like AirAsia in Malaysia and Garuda in Indonesia. Their testimony about accepting lavish gifts like homes or cars in exchange for committing their airlines to contracts with Airbus. The statements of the intended recipients of bribes, who were tasked with influencing major procurement decisions, held significant evidence. The investigators from SFO retrieved emails, bank records and transaction documents during searches were important as it directly sourced from the investigation. They are also showing financial records like bank transfers that show money flows to intermediaries. Auditors who were part of the original investigations into Airbus also provided testimony. The auditors had presented audit reports from their previous examinations of Airbus and spoke regarding the compliance failures, issues, and limitations faced in their earlier probes. In conclusion, the powerful evidence and witness testimony strongly supported the prosecution's case against the Airbus bribery scandal that involved countries around the world. 12
FINEAGAINST AIRBUSSE Airbus SE (Airbus or the Company), an international supplier of civilian and military aircraft based in France, has consented to pay a total penalty of more than $3.9 billion to settle foreign bribery charges with authorities in the United States, France, and the United Kingdom arising from the Company's scheme to bribe government officials, as well as nongovernmental airline executives, around the world by third-party collaborators, as well as to address the Company's illegal behaviour. To date, this is most essential global foreign bribery resolution (Boakye, D., Siaw, D., & Sarpong, D., 2022). Airbus agreed to a deferred prosecution agreement with the department in connection with criminal records filed on January 28, 2020 in the District of Columbia charging the Company with conspiracy to violate the FCPA anti-bribery provision and conspiracy to violate the AECA and its implementing regulations, the ITAR. The FCPA charge stemmed from Airbus' scheme to provide and pay bribes to foreign officials, including Chinese officials, in order to gain and maintain business, including contracts to sell aircraft (Boakye, D., Siaw, D., & Sarpong, D., 2022). The court fined Airbus and the SFO €3.6 billion and labelled the Deferred Prosecution Agreement as the the world's largest anti-corruption settlement (Pegg & Evans, 2020). The SFO announced in January 2020 that the €3.6 billion mulct, which the Southwark Crown Court had approved, would be distributed as follows: The SFO will receive €991 million, while Parquet will receive €2,083,137,455. France's National Financier (PNF); and €525,655,000 to the United States Departments of Justice (DoJ) and State (Airbus, 2020; DoJ, 2020a; SFO, 2020b), because the case's jurisprudence spans these countries. Despite the fact that Airbus was not given credit for doing so voluntarily. The company was praised for accepting disclosure of wrongdoing in their operations and pledging to cooperate with authorities during the investigation (Airbus, 2020; DoJ, 2020a). 3.3 PUNISHMENT AND LEGAL ACTION 13
The company will pay the US $527 million for FCPA and ITAR offences, along with an additional 50 million Euros (approximately $55 million) for the purpose of a lawsuit forfeiture agreement for ITAR-related actions, and the department will credit a portion of the amount paid to the PNF in France under the company's agreement with the PNF. Furthermore, the company agreed to pay a $10 million punishment to the US Department of State's Directorate of Defence Trade Controls (DDTC), with the State Department crediting $5 million of the penalty. In related proceedings, the Company agreed to repay more than 2 billion Euros (approximately $2.29 billion) to the PNF in France for bribes paid for government authorities and independent airline executives in China and abroad. Therefore, this coordinated worldwide resolution, the company signed a contract of cooperation with the Serious Fraud Office (SFO) of the United Kingdom over bribes paid in Malaysia, Sri Lanka, Taiwan, Indonesia, and Ghana, and the Company has agreed to pay approximately 990 million Euros equivalent (approximately $1.09 billion) under the SFO agreement. As part of a Joint Investigative Team, the PNF and SFO investigated the Company. Total of 3.6 billion, which SFO agree 984 million fine, PNF agree 2.08 billion fine, and DOJ agree 525 million fine (Boakye, D., Siaw, D., & Sarpong, D., 2022) Under the AECA and ITAR, the DDTC regulates the export and import of US defence articles and services, and limits them from being exported globally without the DDTC's licencing along with permission. According to admissions and court documents, between December 2011 and December 2016, Airbus issued numerous uses for the export of defence articles and defence services to foreign armed forces. As part of its applications under Part 130 of the ITAR, Airbus was required to provide specific details regarding political contributions, fees, or commissions paid in connection with the sale of defence articles or defence services (Boakye, D., Siaw, D., & Sarpong, D., 2022). 14
The Airbus scandal became widely known through newspapers and online news platforms. 'The Guardian' called it the biggest anti-corruption settlement ever, with a court imposing a fine of €3.6 billion. The article highlighted a division in Airbus, known as the Strategy and Marketing Organisation (SMO), which was responsible for organizing the bribery activities. In January 2020, the Southwark Crown Court approved the payment of the €3.6 billion fine. The breakdown of the payment included €991 million to the UK's Serious Fraud Office (SFO), €2,083,137,455 to France's Parquet National Financier (PNF), and €525,655,000 to the US Department of Justice (DoJ) and US Department of State. Although Airbus didn't receive credit for voluntarily disclosing the wrongdoing, it was recognized for admitting its faults and cooperating with the authorities during the investigations. This bribery scandal involved Airbus conducting improper activities in five countries and led to substantial fines and legal repercussions for the company. (Derrick Boakye, 2022) Between 2015 and 2020, Airbus made big changes to fix past problems and ensure it follows the rules better in the future. They changed a lot of people in charge, hired an independent group to check their ethics and rules, restructured their teams to focus on following rules better, and updated their policies based on advice from outside experts. Airbus also checked its whole company for bribery and corruption risks and improved how they check and watch over other companies they work with. All these steps show Airbus is serious about fixing past mistakes and making sure it follows the law and ethical standards. (Rebuilding Trust Post Reputational Damage: The Airbus Bribery Case, 2023) 4.0 NEGATIVE IMPACTS OF BRIBERY TOWARDS AIRBUS 4.1 OVERALL OF THE AIRBUS CAREER 15
The political impact following the Airbus bribery scandal varied across the countries involved. Now we talk about trouble in different countries because of claims that Airbus paid bribes. In Ghana, there's a big issue over supposed payments for military planes. Ghana's President promised to look into any involvement of government officials, while one political party denied the bribery accusations. In Colombia, Avianca Airlines is checking if it was harmed after Airbus apparently paid a lot of money to someone linked to their jet sales. In Sri Lanka, there's an investigation because Airbus hired the wife of an airline executive to help in plane deals. Airbus also misled a UK agency and paid $2 million to that person's company. There are allegations about improper payments in deals involving Korean Air and China Airlines. Settlements in France and the US brought attention to Airbus' actions in China, including claims of using money for bribery and other purposes. Though Airbus was expected to gain business due to US-China tensions, Chinese officials didn't comment due to the coronavirus situation. But China's foreign ministry stressed its strong cooperation with France in aviation. (Airbus Bribery Fallout: Investigations Launched Worldwide | Corruption, 2020) 4.2POLITICALIMPACT 16
4.3 ECONOMIC IMPACTS Following a comprehensive four-year examination of its operations, Airbus was discovered to have been unsuccessful in stopping bribes from being paid in order to get profitable contracts for its Commercial, Defence, and Space divisions in five significant countries: Ghana, Sri Lanka, Malaysia, Taiwan, and Indonesia. According to reports, Airbus paid commissions of €5 million to Ghanaian government officials to persuade them to purchase military transport aircraft made by the company. A similar strategy was used in Indonesia, where Airbus secured the purchase of about 55 Airbus aircraft by paying $3.3 million to powerful Garuda/ Citilink workers. Airbus paid $14,335,000 to two middlemen in Taiwan to persuade TransAsia Airways to buy 20 planes. Furthermore, an offer of $16.84 million was made to Sri Lankan Airlines to acquire ten aircraft. Allegations surfaced in Malaysia that Airbus had paid $50 million plus an extra $55 million to a sports team owned by two executives, which included AirAsia and X Airlines. Together, the culpable airline companies placed orders with Airbus for 586 aircraft. 4.3 ECONOMIC IMPACTS Following a comprehensive four-year examination of its operations, Airbus was discovered to have been unsuccessful in stopping bribes from being paid in order to get profitable contracts for its Commercial, Defence, and Space divisions in five significant countries: Ghana, Sri Lanka, Malaysia, Taiwan, and Indonesia. According to reports, Airbus paid commissions of €5 million to Ghanaian government officials to persuade them to purchase military transport aircraft made by the company. A similar strategy was used in Indonesia, where Airbus secured the purchase of about 55 Airbus aircraft by paying $3.3 million to powerful Garuda/ Citilink workers. Airbus paid $14,335,000 to two middlemen in Taiwan to persuade TransAsia Airways to buy 20 planes. Furthermore, an offer of $16.84 million was made to Sri Lankan Airlines to acquire ten aircraft. Allegations surfaced in Malaysia that Airbus had paid $50 million plus an extra $55 million to a sports team owned by two executives, which included AirAsia and X Airlines. Together, the culpable airline companies placed orders with Airbus for 586 aircraft. 17
A IRB U S With the €3.6 billion punishment the court levied in relation to the Airbus bribery case, the Deferred Prosecution Agreement between Airbus and the SFO stands as the largest anti-corruption settlement in history. There is a significant economic impact, and one of the main effects is the decline in confidence and trust. The public's confidence in industry and government could be damaged by a large aerospace company's involvement in bribery. Foreign direct investment may decrease as a consequence of investors' reluctance to do business with firms in the impacted nations. In addition, the controversy damages Airbus's and other companies' reputations in the relevant jurisdictions. The participating nations may experience a decline in their stature internationally and appeal to foreign investors. Local businesses involved in the scandal, particularly those in Malaysia, would find it difficult to establish and preserve a positive reputation. Furthermore, the enormous quantities of money engaged in corrupt activities could have been used for infrastructure development or other necessary public services. Rather, these monies were misappropriated for private benefit, which would have hampered public welfare and economic growth. Furthermore, the controversy affects international commercial partnerships. International economic relations may be problematic for nations involved in corruption scandals. When doing deals with organisations from nations having a reputation for corruption, governments and corporations from other countries should proceed with caution. 18
Ethical Business Practices : The significance of conducting business morally and legally should be emphasized. In all business dealings, from international transactions to procurement, companies should place a high priority on integrity. Global Compliance Awareness: : It's critical for multinational corporations like Airbus to comprehend and abide by a variety of international regulations. Create a worldwide compliance plan that takes localized differences in moral and legal requirements into account. Effective Risk Management : To quickly identify and address possible risks, strengthen your risk management procedures. This entails evaluating the risks connected to partnerships, corporate operations, and regulatory concerns. 5.0 LESSONLEARNED FROMTHE AIRBUSCASE 19
6.0 HOW AIRBUS RECOVER FROM THE CRISIS A good crisis management is always the joint effort at all levels of government, private organizations and citizen groups. This degree of coordinated collaboration between all actors should animate the whole crisis management cycle - from prevention and preparation to rapid assessment, detection, evaluation and response through recovery. (HAMZAH AHMAD,2020) Leveraging on its accumulated experience, Airbus assists civil protection and emergency service through providing advanced solutions in both communications as well as geoinformation systems during the crisis from beginning to end. These solid assets and services are custom made based on the needs of users, but can still be expanded or changed as necessary. (MY METRO, 2021) 20
To counter and prevent corrupt practices within the company, Airbus has also put in place an anti-corruption policy. This policy seeks to ensure compliance with all those applicable laws and regulations concerning the fight against corruption. It stresses the importance of principled conduct, openness and responsibility in all business activities. Airbus is determined to conduct its business with probity, and it has put into place numerous anti-bribery, anti-fraud measures etc. The company actively encourages a compliance culture, training and guiding its employees about the Anti-Corruption Policy. The company continually reviews and updates its policy, to correspond with changing legal requirements in the field of anti-corruption as well as best practices. (AIRBUS ANTI-CORRUPTION POLICY) 6.1 AIRBUS ANTI-CORRUPTION POLICY This Document defines the Airbus AntiCorruption Policy. It ultimately provides employees with a single and unique reference and guide on its related matters (AIRBUS ANTIcorruption policy) PURPOSE : 21
In conclusion, the scandal of Airbus revolved where the allegations involving bribery and corruption to secure contracts in multiple countries. The investigation revealed that Airbus used outside consultants to facilitate bribe payments and contracts to sell aircraft. The settlement was one of the largest ever reached in a global bribery case. The scandal engendered a plethora of consequences for Airbus’ reputation, political system, global economics, and social values. Thus, Airbus has compensated over $3.9 billion to resolve the issue and recover damages. Since then, Airbus has apprehended the severe impact of bribery and implemented an Anti-Corruption policy that became the foundation of the ethics that Airbus operates on nowadays. All in all, it is evident that bribery and corruption leads to absolute disruption of order in the corporate world. Corruption should be conquered with transparency, ethical attitude and accountability. In order to combat corruption, sustained commitments from individual, communities, and governments all across the globe is required. 7.0 CONCLUSION 22
12 INVESTIGATION OF THE CASE This action, which is referred to as the largest corporate corruption, succeeded in driving the company's earnings to over US$1 billion (RM4.1 billion) during the course of a protracted crackdown. According to Bloomberg, courts in France, the United States, and the United Kingdom accepted an arrangement in which the European aircraft manufacturer admitted guilt and agreed to pay US$4 billion (RM16.4 billion). The documents indicate that over a period of more than 13 years, Malaysia, Russia, and China were also implicated in the crime. (Hm, 2020) According to French authorities, the plan increased Airbus SE's earnings to US$1.2 billion (RM4.91 billion). For three years, Airbus will be monitored. The report indicates that it took a full four years to successfully prosecute the case. According to the information, Airbus bribed officials by u sing middlemen to get into a new market. An estimated 2.1 billion euros (RM9.54 billion) were paid to France, 991 million euros (RM4.5 billion) to the UK (including fees), and 527 million euros (RM2.4 billion) to the US during this period. (Hm,2020) BACKGROUND OF THE INVESTIGATION AIRBUS SE bribes decision makers and government officials with an annual budget of up to US$300 million (RM1.2 billion) in order to acquire its aircraft. REFERENCES Airbus plans to further adapt to COVID-19 environment | Airbus. (n.d.). Www.airbus.com. https://www.airbus.com/en/newsroom/press-releases/2020-06-airbus-plans-to-further-adaptto-covid-19-environment Airbus bribery fallout: Investigations launched worldwide | Corruption. (2020, February 4). Al Jazeera. Retrieved December 26, 2023, from https://www.aljazeera.com/economy/2020/2/4/airbus-bribery-falloutinvestigations-launched-worldwide Cambridge dictionary. (1995). In English Dictionary, Translations & Thesaurus. https://dictionary.cambridge.org/ Chadwick, L. (2021, February 18). Airbus reports €1.1 billion in losses due to COVID-19 pandemic. Euronews. https://www.euronews.com/my-europe/2021/02/18/airbus-reports-1-1-billion-inlosses-due-to-covid-19-pandemic Derrick Boakye. (2022, Dec -). Europeon Management Review. The Airbus bribery scandal: A collective myopia perspective, 19(4), 525-670. https://onlinelibrary.wiley.com/doi/epdf/10.1111/emre.12511 Economic times. Economic Times.(2020). Retrieved December 22, 2023, from https://economictimes.indiatimes.com/definition/corruption Hm, B. (2020, February 1). Airbus mengaku terbabit rasuah. Harian Metro. https://www.hmetro.com.my/bisnes/2020/02/540476/airbus-mengaku-terbabit-rasuah# JH, Pe. (2023, November 6). The Rise and Fall of the Airbus A380: A Lesson for Professional Engineers. PEimpact - Recognizing the Impact of PEs. https://peimpact.com/rise-and-fall-of-theairbus-a380/ Rebuilding Trust Post Reputational Damage: The Airbus Bribery Case. (2023, July 27). Rainmaker. Retrieved December 26, 2023, from https://rainmaker.co.in/blog/view/rebuilding-trust-postreputational-damage-the-airbus-bribery-case Lessons learned from the airbus anti-corruption settlements: Insights. Holland & Knight. (n.d.). https://www.hklaw.com/en/insights/publications/2020/02/lessons-learned-fromthe-airbus-anticorruption-settlements Boakye, D., Siaw, D., & Sarpong, D. (2022). The airbus bribery scandal: A collective myopia perspective. European Management Review, 19(4), 654–670. https://doi.org/10.1111/emre.12511
What is corruption – GIACC. (2021). Retrieved December 22, 2023, from https://giaccentre.org/what-is-corruption/ Why The Airbus A380 Was Not A Success - Travel Radar. (2021, March 14). https://travelradar.aero/why-the-airbus-a380-was-not-success/ The airbus bribery scandal: A collective myopia perspective. (n.d.). https://onlinelibrary.wiley.com/doi/full/10.1111/emre.12511 REFERENCES Suruhanjaya Pencegahan Rasuah Malaysia (SPRM).(2023). Retrieved December 22, 2023, from https://www.sprm.gov.my/index.php?page_id=75&articleid=478&language=en