Ethical issue 2
GN’s export of land mines to Iran and Afghanistan raises the problem of its cooperation with the US government. Hence, the ethical problem of double standards arises, which reveals the hypocritical nature of the company (Russell, 2003). The policy conducted by the company contradicts to basic ethical norms and principles because double standards are not ethically acceptable in the contemporary business environment. Business partners and customers cannot trust the company that conducts the policy of double standards. Therefore, the company using double standards conducts its business unethically.
At the same time, it is worth mentioning the fact that GN’s double standards are quite controversial since the company supplies weapon and equipment to parties, which are enemies in their essence. The company cannot supply the weapon and equipment to Taliban and the weapon and equipment to the US army that struggles against Taliban in Afghanistan.
Legal issue 2
Being based in the US, GN cannot export weapon to countries which are in the state of war with the US. In fact, it is absolutely illegal to maintain countries or parties that fight against the US. In this regard, GN supplies weapon and equipment to Taliban which struggles against the US. Obviously, such policy contradicts to existing legal norms because GN is the government contractor and supplies its products to the US army. As a government contractor, the company cannot supply its products to enemies of the US. In addition, the company violates anti-terrorist legislation because Taliban supports international terrorism. For instance, the supply of the weapon and equipment to Taliban in Afghanistan and Iran contradicts to the Arms Export Control Act of 1976, which bans the export of the weapon and equipment to countries which represent a threat to their neighbors and international community and support international terrorism, while the US clearly stands on the ground the Taliban in Afghanistan and Iran support international terrorist organizations. Hence, policies of GN are absolutely illegal and violate existing regulations. In such a situation, the company cannot continue supplying the weapon and equipment to Iran and Afghanistan.
Ethical issue 3
The quality of products of the company also raises ethical issues concerning the responsibility of the company in regard to its customers. The company just lies to its customers and hides the truth about ineffectiveness and potential danger of its products. Therefore, the ethical problem of the customer deception arises. In fact, the company cannot sale products that are of the low quality because it is the direct deception of customers. They expect to receive products of the high or, at least, satisfactory quality. Instead, GN supplies products of the low quality.
At this point, it is important to place emphasis on the fact that the company fails to conduct responsible policies in relation to its customers. The deception of customers undermines the image of the company and has a destructive impact on its further business development. In fact, GN provides its customers with products of the low quality, which do not meet needs and expectation of customers.
Moreover, the specificity of GN’s products is extremely important because the low quality of GN’s products is not a mere matter of the customer satisfaction but it is the matter of life and death. To put it more precisely, land mines that can explode virtually any moment represent the direct threat to the life and health of customers. Similarly the armor supplied to the US army does not protect soldiers from injuries and the failure of the armor to protect soldiers may be deadly for them. Therefore, the company puts under a threat the life of soldiers. In such a way, the company fails to provide customers with safe products. They are dangerous for customers’ life and health. Such policy is absolutely unethical because the company should be responsible in face of its customers. Otherwise, the company can face the problem of the loss of its customers. In fact, the company-customer relationship is a priori grounded on the mutual trust and confidence in each other. However, GN provokes distrust and the lack of confidence of customers in reliability of its products.