The legal and ethical issues surrounding Solyndra Essay

The legal and ethical issues surrounding Solyndra - Essay Example Businesses and organisations must look at the legal issues surrounding their operations. Failing to do this will most likely land the firm in a situation where they have to deal with law suits which may lead to the firm closing its doors from the public (Shaw, 2007). Legal issues as well as ethical issues must especially be considered in a very careful way in cases where public funding is concerned. Failing to do this can lead to inquiries which may lead to criminal prosecution in court. Yet, there are so many firms today which ignore these issues. A good example is Solyndra which died only about five years after its founding. The Solyndra Scandal The Solyndra scandal raises a number of both legal and ethical issues. Scandal like this cost the tax payers hundreds of millions and sometimes billions of dollars. One of the ethical issues which arises from the Solyndra case is the fact that the involved officials were aware of the big financial risk but continued with the project anyway (Leonnig & Stephens, n.d.). According to emails retrieved from correspondence between the Solyndra officials and the White House officials who were aiding in the acquisition of the loan, it was clear that there was little chance of the project breaking even and succeeding and the officials knew it. According to investigation done by the FBI, there were a number of issues which indicated that the officers involved were engaging in unethical or illegal affairs. White House Aide is actually revealed to have warned officials not to have any official communication through their personal email accounts as this would make the personal email accounts to be subpoenaed in case of a legal enquiry (Leonnig & Stephens, n.d.). This was one indicator that the officials, even prior to the over $500 million loan, already knew that things were not working out for Solyndra and that sooner than later it would have to collapse. Why officials of such high ranks would engage in such casino-like transactio ns with public funds in case a case of official negligence and abuse of power and office. While there may not be a directly illegal issue with the aide telling the officers to watch the way they communicate because they could be subpoenaed, it does show that these people were operating way outside the ethical thresholds. The actions of the Department of Energy also show a number of ethical issues. For instance as Stephens, Leonnig and Leonnig (2011) say, the DOE failed to warn the state house about the failing of Solyndra. In fact as the firm continued to fade and sink into its own operating costs, the DOE failed to pull the plug and instead additional funds were given to a failing firm even when it was very clear that the firm was failing drastically. Legal issues To understand the legal issues surrounding the Solyndra case scandal, it is important to revisit how the scandal unfolded. First, Solyndra had managed to secure conditional loan from the government in line with the depart ment of energy regulations. The loan failed to work and this is where the firm sought to get another loan in order to make up for the fact that the first loan did not help the firms to be able to get on its feet. However, due to the risk issues surrounding the restructuring of the loan, the loan restructuring would have to get approval by the justice department. In other words, Solyndra would have to get clearance from the department of