Solyndra Solar Company

Solyndra Solar Company

William Andrew Mullens

Business 311 Law and Ethics in Business

Professor John Steele

August 24, 2013

Background of the company

Solyndra is a solar energy that was founded in the year 2005 in the Fremont California by a persona named Dr. Chris Granet. The company deals in the manufacturing of tubular solar panel which was unrivaled in the solar market industry. All the other solar products are on offers as it’s the policy of all the solar manufacturers to use the traditional flat panels Solyndra photovoltaic (PV) kind of solar system which does not need to be fit deliberately or also fit the particular the standard solar panels that were used for ballast that had their own belongings on the competence regarding the solar panels so as to absorb light power from the sun rays as well (David 2008). The manufacture and exercise of solar panel have an indisputable ethical implication. Issues like admission to solar panel and also economic development in which there is distribution of resources which has effect on the environment and use of exhaustible resources which are also set by the use of solar panel or the solar panel sources which are basically used for the choices that are engage in the one or another kind of large statement of the certain kind of ethical values (Saleem , 2011).

Solyndra’s problem began to start from 31st august 2011 when they filled a legal compliant for the chapter 11 of the bankruptcy case which was after two years (24 months) receiving the payment of more than half a billion loan funding from the energy department of US and also adding on $25 .1 million which was tax free from the California’s Alternative Energy & Advance Transportation Authority (CAEATA) by which they were granted a help to the Solyndra finance for the making of solar panel development panels (Anderson, 2012)This loan was off a very huge amount was still possible because a energy law passed in the year 2005 which showed that the official department to question the backed loans for the new inventions projects that had helped them decrease the air pollution . More than 1100 employees were told to go and the development, manufacturing stopped as the company had an off. The reasons given were for all this was that the production was getting more and more expensive day by day and the solar panel prices were failing badly. The prices were failing badly because of the sudden rise in the competition from Chinese developers. The last attempt to save Solyndra’s failed on 30th august where the management could not prove that the injection of the more capital will leave Solyndra bankrupted as there was no money to carry out their daily activities (McGrew 2011).. The analysis of the company from the sustainability states that show the concern regarding the resource depletion or the impact of the environment on the solar panel. The treatment of issues of social equity is also a source for the proof that whether a social structure is valid or not, inspite of any ethical evaluation.

The legal and ethical issue which were faced by Solyndra

A few days before and few days after the company filed for bankruptcy, the company was under the examination by the federal criminal investigations regarding the investigations which were made by US (Saleem , 2011). The investigation was carried on by Attorney’s office & department of justice. Let us discuss these issues in detail:-

The Legal issue of the company:-

The legal issues that were the most important for the company was to see and check who were the basic people involved who distorted the real state of the company’s financial services or were there any kind of fraud accounting practices going on in the company (Anderson, 2012) . There were many different types of issue which were also alarmed by the House committee of US specially the people of Republican group who said there was no issue on Solyndra’s dismissal so as to see customer contracts so as to have a process of keeping a full involved trustee so to take charge of the energy firm . There was also the issue of confidential investors being refunded with their investment because if Solyndra finished before the tax payers than they were also touted so as to go against the energy law of 2005 as said by the U S. Office of the trustee an arm of justice dept. than the company had other legal issues also that were filled by their employees. The employees of company sued the organization and asked them to compensate their salaries as they were terminated without being properly told. They told the company to follow the WARN (Workers Adjustment & Retraining notification) acts of which they had to be warned before the 60 days of being laid off and also sought their payment of the 60 days pay , there other benefits of contributions like of 401 (k) . There were more than 1100 employees for which they had to pay off the compensation (Anderson, 2012).

Ethical issues faced by the company:-

A big fact that opened in Solyndra case was that of Solyndra George Kaiser was also the big financer of the Obama presidential movement and is known as to use this to make influence on the quick release of more than half a billion loan without any assiduousness being carried away(Texas Vox 2011) . The energy section of Solyndra was also held responsible for the administration Solyndra not being able to be a part of the primary election s of 2010 after the denial of Solyndra financial crisis even when they knew that it’s a known fact as a sign of ethically being failed on the side of the department.

There are basically two laws that were unnoticed in the Solyndra case that there was the energy policy of 2005 in which there was the energy rules of 2005 which clearly stated that the department of energy will be able to consult with the OMB and also the treasury secretary before making any changes in the progress. The company clearly ignored this law because they chose to honor the private investors by their dues which were before they did for their private investors as well. The other law which was broken by the solar company was the avoidance of the taxes by making return for bankruptcy so they could also make millions of dollars by net operating the looses that will be used in the process of reform(Trivedi, 2012).. The basic ethical code was ill treated that one of the honesty by the company that they didn’t tell the DOE regarding the financial trouble and was proves that company was already in trouble before getting any kind of efficient loan as well. it was discovered that George Kaiser provided more than$75 million to help the company in the better state at the time of refinancing of the government (Saleem , 2011)

ETHCIAL FRAMEWORK THAT COULD HAVE HELPED THE COMPANY

An Ethical Framework that could have helped the company was in the hands of government (Anderson, 2012). The government should have not connected the particular sector of industries to start companies like venture capitalist and only function in the matters of energy or other business so as to create ethical framework so as to level all the things like fossil fuel fired and also the renewable energy which starts up and also regulates it equitably and which are responsible for the bad effects that are gained from the activities and contribute to the global warming or also misuse of grants for the green energy projects , which the management can achieve by a cap and deal marketplace or carbon tax rules and regulations as well ( Woody, 2011).

In such a situation the company should have followed Milton Friedman’s Philosophy. He was a great 20th century economist, who always advocated for the free markets imaginative by the government interfering. He also said that if there would be no interference of the government in the companies than there will be lot of growth and success would rise in the market. He stated that importance of unregulated market very clearly and many counties followed this line of thoughts in where the countries had gained so much scope from the state corporations as well. In the case of Solyndra, we can state that the government had left all the energy firms to their own devices and sets and also left the conjecture to experts of markets like venture capitalists that were transpired in the conclusion of the firm and also the loss of more than half a billion of people paying tax would have not happened so badly (bowman , 1990)

These ethical and legal actions of the bankruptcy of the company had the most effect on the executives of Solyndra . these executives pleaded in front of the house bord , that some of their senior staff of Solyndrahave worn an action and deed so as to have their bonuses repaid to them in the amount of $ 370, 000 regarding the company’s full insolvency is achieved. Most of the investors of the company said that they didn’t have any kind of government interference on carrying out the activities of the Silicon Valley energy firm that would have handled the storms they were going through (bowman , 1990). Thus the day after s senior manager of the energy department told to discuss the companies plea for the $535 million, the senior adviser defended the solar company own reputation in the exchange if white house assistant. Steven J. Spinner who was also a major investor for President Obama group and also the investor in Silicon valley helped the government to invest in more clean technology companies . His wife used to work for Solyndra, the solar-panel manufacturer industry and their applications regarding the government loans as well. Thus many people and advisors state that Solyndra, is a nice developed company and needs the full support of the government to face this crisis. Only government is the one who can help them to overcome this obstacle and continue their business operations of solar panel manufacturing.

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REFERENCES:-

Anderson, M. (2012). Bankrupt solyndra caught destroying brand new parts. Retrieved from http://sanfrancisco.cbslocal.com/

Bowman, L. (1990, March 7). Bills target Lake Erie mussels. The Pittsburgh Press, p. A4.

Baker, David R. (7 September 2011). " Solyndra files bankruptcy, employees sue". The San Francisco Chronicle p4

David B. (2008). "Cylindrical Solar Cells Give a Whole New Meaning to Sunroof". Scientific American. Retrieved 13 June 2012. From http://www.scientificamerican.com

Saleem , V. (2011). Solyndra for dummies . Retrieved from http://www.ethicalocean.com/

Todd Woody (6 September 2011). "Solyndra: Pay Some Investors Before Taxpayers In Solar Flame Out".Retrieved 14 June 2012.from http://www.forbes.com

Trivedi, Shamik (2012)SOLYNDRA BANKRUPTCY PLAN SERVES TO AVOID TAX, DOJ INSISTS.) Retrieved /11/10/ 2012)