Rolls-Royce Bribery Claims: Finding, Analysis And Ethics

Introduction And Background Of Rolls-Royce

The Rolls-Royce is a multi-national company which is known for the business in about one thirty five countries and for manufacturing of aircrafts is done in about fourteen different countries. There are about forty thousands of employees who are working in with different businesses. Also, it deals in the businesses related to defense aerospace, civil and in marine markets. Rolls-Royce serves to its fifty six thousands of the aircrafts, along with the hundreds of armed forces (Economist, 2009). It is the brand which is majorly known for the most high technology, high class quality, and reliability and of course for its prestigious brand name (Shah, 2011).

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The case study which is analyzed gives the details about the bribery claims done by such renowned organization. The factor that is critically analyzed is the hindrance caused in future growth of the company. To evaluate it further, the findings about the ethical theory are found out by the theoretical tools for it. The global marketing mix for such analysis is used. They were penalized after the long run investigation into the claims which it had made in order to pay bribe for the contracts dealing in the land exports. Later on the anti-bribery investigations were conducted which involved selling the turbines and other parts of engine globally. This organization had good relations with government of UK and was quoted by many people that they are proud that this is the leading company in the whole United Kingdom. Also, Rolls Royce was quoted among such companies as globally great (Fraser, 2016).

Later on when these allegations were made in the court regarding the scandal about Rolls Royce bribery claims there had been apology made by the organization (Evans, Pegg and Watt, 2017). By this allegation the global brand image has been affected a lot in reference of the global market image (Aaronson, 2002). This is the case study which has been analyzed over the bribery claims on Rolls-Royce to pay £671million for getting the contract assigned. The findings and accordingly their recommendations has been made in the report below.


The findings from the case are that the organization Rolls Royce has offered bribery to win the contracts in supply the aircrafts (Lea, 2017). This has resulted in the decrease in brand image of Rolls Royce which is among the prestigious organization of United Kingdom. This has resulted in asking for apology by the chief executive of Rolls Royce (Orrance, 2015). This has lead to such damage to its reputation that is immeasurable. By this profits of over a year were wiped out. This bribery claims has ran for decades for such a world renowned engineering organization (Ruddick and Wearden, 2017). It was also found from the case that the company has cooperated by admitting the charges and doing the investigation on it (Rolls-Royce , 2012). The impact can be seen in the change graph given below:

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Into The Rolls Royce Story

The DPA has avoided this conviction to an extent which resulted to be Rolls on probation period. This is meant to be the key factor in this case (Smith and Quelch, 1993).  Warren East has leaded the company in compactly changing and covering these issues of corruption for the period by his excellent leadership skills over the period (Tovey, 2017).

For not having such unethical practices in an organization, there needs to be followed the ethical theories so that the marketing is done in the right way and hence as a result the profits and revenues are also not affected by this practice (Chonko and Hunt, 2000).  The main reason behind such issues with ethics usually arises from disagreements and other such conflicts. For not having such issues, the ethical theories are basically of four types which are needed to be followed: 

This can be explained as the ac by an individual along with the social policy which is permissible if such consequences by that results in producing the good amount of persons who are affected either by the act or by the policy. These can be further divided into the following two types which are:

  • ACT UTILITARIAN means the act which is acceptable if it is done for the good in favor of something and there are more number of persons affected by this good.
  • RULE UTILITARIAN refers to the act, which has such consequences by following the rule which shall bring about the utmost good in about greatest number of persons affected by one.

This ethics theory refers to the morality which needs to be followed along with the concepts of the duty and it shall never result in the human actions. These can be divided into two types:

  • RULE DEOTOLOGY, which means the every individual in an organization, needs to be treated equally and fairly and this applies to the whole organization.
  • ACT DEOTOLOGY refers to the ability which is used to find out the actual duties in regard to a particular situation which shall be possible by the way of following the process of rational intuitionism.
  • CONTRACT BASED SOCIAL THEORY This refers to have such ethical behavior in an organization, by such act which will satisfy the ones own needs or desires so as to avoid the consequence of disliking. While there needs to be avoid the constant threats from others which shall destroy the desire of others.
  • CHARACTER BASED VIRTUE THEORY This act refers to the development within an individual for which good traits and good character for acquiring, these kinds of habits are needed to be inculcated and hence developed. For being successful ethics in any marketing or business needs to be practiced rather than just learning them (Kotler, 2000). This can be done by properly having such trainings provided in an organization on such subject matter. Also, these morale virtues for instance courage, temperance controlling needs to be practices well, for leading an organization to be more ethics oriented and in addition to it to be successful.

 These are the ethical theories which need to be practiced in an organization rather than just learning them. This virtue not only assists the organization but develop the individual as well.

The marketing mix of Rolls Royce is designed in such a way which needs to be followed along with the ethics. As by practicing this, it does not affect in wrong doing for any of the party. For this matter the individual facets of global marketing can be linked with the ethics followed in an organization (Nantel, 1996). The elements which are linked with the ethics are as follows:

The issues with the ethical problems in marketing are that the privacy and the stereotyping mindset (Crane and Desmond, 2002). The marketing research when is done it should be done carefully so that is does not lead to the results which are undesirable or is unethical.

For the developing countries, any of the ethical issues directly relates to weak audience which will result in defaming of the brand image in the market.

Finding And Analysis

For certain commodities advertising and promotion of the products may help in immense building up the interest of the customers (Nwachukwu, Vitell, Gilbert and Barnes, 1997). The advertising although can have negative impact, on the market brand image sometimes. These further leads to be used more of in the politics.

The channels of delivery need to be direct. As by the way of the TV commercial or some way of direct email, the commodity or the information reaches to the customers in a solicited manner. The mediums such as telemarketing or spam electronically, makes the ethics inculcated and followed more strongly.

Whenever in the market, the pricing of a commodity or services are disclosed then it shall be taken further in an ethical manner. The prices should not involve any of the taxes unnecessarily resulting in the loss for the customers. Such practices as bid rigging are one of the techniques which is based on the fraud done in contract with the commercial. This is one such type of unethical practices.

 After analyzing the case with the bribery of the contracts related to land exports, the finding about the ethics not followed has been discussed. Also, Rolls-Royce has other marketing strategies which has been followed with the global marketing strategies are discussed below. Ethics is basically in an organization means that the manner in which the business is conducted. It need to be in the most efficient and effective way (Malliaris, 2001). There are some variations in employees who are working already as they are working with different values and motives. These practices which were on going into Rolls Royce lead to the impact on the organization. Such factors that are affected are as follows:

Unethical actions such as in this case is the offering of bribery of these are the factors which ultimately affects the goodwill of the company and also the business environment of an organization (Murphy and Laczniak, 1981). This will affect the customer base which will result in exploiting the workers who are presently working in Rolls Royce. The wrong doings done intentionally in this case which will affect the brand value of Rolls Royce along with exploiting the internal environment of the organization.

By practicing such unethical practices in the physical environment will not help out to exist in longer run. Such companies which do not pursue ethics rather make profits unethically without having consider that how will these affect their business in long term often results in destroying itself. These are the impact of unethical practices being practiced in an organization which shall ultimately end up having loss to them.

Ethical Theories


Hereby, it is concluded that the unethical practices done by the Rolls Royce lead to downfall of brand image which is referred as a prestigious brand of UK. Not only this, it has led in cutting down of the profits of over a year. The revenues are not generated in the next one year, rather have fallen. The ethical theories of contract here need to be followed so as to practice the doing in an ethical manner. By Also the global marketing elements relating to the Rolls Royce has been given. 

The recommendations for practicing excellent marketing practices by Rolls Royce are made up as the bribery fraud which was committed in order to get more contract of supply from the air craft supply. The business needs to follow the ethical practices so that there is no further danger of losing the brand image and other important factors. The ethics are to be practiced in a longer run for which the ethics in an organization should be used as marketing strategies. It is also recommend that the image of the brand damage reveals the unethical practices being followed. Hence as a result the propagation relating to the ethics is a huge component leading to build the corporate image (Piacentini, McFadyen and Eadie, 2000). In future, the ethical practices are recommended to be followed by Rolls Royce. 

Lists Of References

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Chonko, B.L. and Hunt, S, (2000), Ethics and management: a retrospective and prospective commentary, Journal of Business Research, 50(3): 235-244.

Crane, A. and Desmond, J., (2002), Societal marketing and morality, European Journal of Marketing, 36(5/6): 548-569.

Kotler, P. (2000), Marketing management: the millennium edition, 10th edition, Prentice Hall, Upper Saddle River, NJ, USA.

Malliaris, P. (2001), Introduction to Marketing, Stamoulis Publications, Athens.

Murphy, P.E. and Laczniak, G., (1981), Marketing ethics: a review with implications, in Enis B.M and K.J. Roering (eds), Review of Marketing: 251-266, American Marketing Association, Chicago, IL, USA.

Nantel, J. (1996), Marketing ethics: is there more to it than the utilitarian approach? European Journal of Marketing, 30(5): 9-19.

Nwachukwu, S.L., Vitell, S., Gilbert, S. and Barnes, J. (1997). Ethics and social responsibility in marketing: an examination of the ethical evaluation of advertising strategies, Journal of Business Research, 39: 107-118.

Piacentini, M., L. McFadyen and Eadie, D., (2000), Corporate social responsibility in food retailing, International Journal of Retail & Distribution Management , 28(11): 459-469.

Smith, I.C. and Quelch. J. (1993). Ethics in Marketing, Irwin, Homewood, IL, USA.

Economist. (2009). Rolls-Royce: Britain’s lonely high-flier. Available at: [Accessed on 28/02/2017].

Evans, R., Pegg, D., and Watt, H. (2017). Rolls-Royce apologises in court after settling bribery case. The guardian. Available at: [Accessed on 01/03/2017].

Fraser, I., (2016). Fresh allegations Rolls-Royce was involved in corruption to land contracts. The telegraph: business. Available at: [Accessed on 01/03/2017].

Lea, R., (2017). Rolls-Royce faces fresh bribery case. The times: Industry. Available at: [Accessed On 01/03/2017].

Orrance, J. (2015). Rolls-Royce revs up record year as customers demand exclusivity.

Rolls-Royce (2012). Rolls-Royce Corporate Strategy. Available at: [Accessed on 01/03/2017].

Ruddick, G. and Wearden, G., (2017). What did Rolls-Royce directors know about bribery scandal? ‘No comment’. The guardian. Available at: [Accessed on 01/03/2017].

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