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Laws And The Ethical Framework Applying To The Department Of Energy

697 Words3 Pages

The two laws and the ethical code applying to this situation The energy policy of the US states that “DOE (Department of Energy) shall consult with OMB and the Secretary of the Treasury before granting any deviation in the loan.” The government financial institutions did not adhere to the processes of giving financial help. This implied that the company’s assets and its financial capability were not evaluated and this caused a risk in the loan repayment. Solyndra also failed to adhere to American tax laws which was seen during the process of bankruptcy. The company evaded the payment of tax and the money which it had saved was not used for rebuilding the company again. The aim of the managers was not solely to save the company’s credibility. The other ethical code which was abused by the company was the honesty of the company to inform the department of energy on the financial problems. The company was in financial problems before getting the loan from the US government and George Kaiser provided $75 million dollars to help the company to be in a better state in February when the government was financing the company. Ethical framework applying to this situation …show more content…

The officials were not allowed to finance companies like the Solyndra because it dealt with production of pollution free technologies. The provision of such huge sums of money should be given to a company after full evaluation of its activities and its financial strengths. The department of energy was not also authorized to give such huge sums of money before contacting other departments on the same. Therefore the granting of this huge sum of money to this company without proper testing of the company proved that there were additional issues related to this

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