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FILM: Responsible Corporations? BAE Systems
FILM: Responsible Corporations? BAE Systems
 



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22 mins, 2012

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Key Topics
  • Multinationals
  • Corporate Social Responsibility
  • Developing World
  • Corruption
  • Arms
  • War
  • Ethics
Multinational BAE Systems make everything from aircraft to missiles and big profits.They make big profits,create skilled jobs and use cutting edge technology. But is it in an immoral business?

GLOBAL BUSINESS:
Originally formed from a merger of British aviation companies in the 1970s, BAE was originally called British Aerospace. Now it's ditched the British title and goes for global sales. 47% of its business comes from the US and 29% from the UK. The key objection critics make against BAE is that they're arming over 100 countries around the world. And in countries like Bahrain BAE's weapons are used to subdue pro-democracy demonstrations.

CORRUPTION:
It's also been accused of corruption in its business dealings. In 2004 the UK's Serious Fraud Office started investigating BAE for paying bribes to win contracts in Saudia Arabia. But the prime minister at the time Tony Blair closed the investigation down, saying Britain's "strategic interest" came first. In Tanzania, too, BAE was involved in a corruption scandal and even tried to withhold compensation payments it was ordered to pay to the country.

SOURCE OF JOBS?
BAE is praised for creating jobs - but critics claim the British tax payer is subsidising those jobs. Much of the money spent on research and development which benefits the arms industry comes from the public purse, too. Some say the money would be better spent on other areas, such as green technology. BAE has also been accused of being too close to the UK government, with former civil servants and ex-ministers regularly coming to work for them: the "revolving door syndrome". BAE's supporters say we need an arms industry to defend ourselves. Critics say making arms is immoral.


Full series:
Responsible Corporations? Google, Apple Computers, News Corporation
Responsible Corporations? Primark, RBS, Drugs Industry
Responsible Corporations? BAE Systems: The Arms Maker
Responsible Corporations? The Cigarette Business
The Power Of A Multinational: Monsanto

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