General Overview of G4S
G4S is a leading Fortune 500 organization that provides a vast range of services that envelop security, delivered by the company on integrated, multi-service, or single bases in six continents. According to its 2018 report, the company prides itself on being a global employer of 514,000 and 26,500 suppliers across 90 countries ( G4S, 2018) . The organization's mission statement is: 'To meet our customer's security needs by providing integrated solutions, and by doing so, enhance our shareholder value." ( G4S, 2020). The firm boasts a range of sophisticated technology, software systems, and software that it uses to advance excellent provisions of services, such as Deposit, retail cash solutions, bank process automation, and G4S pay solutions. Additionally, the organization proffers secure solutions, such as remote security, rapid response, technology-enabled monitoring, risk consulting, and on-site security. Further, G4S engages in justice services, such as custody detention, rehabilitation, and education, through its four prisons situated in the United Kingdom.
Brief Overview of G4S Operational Problem
In 2019, G4S was accused of having adverse complaints and regulation operational issues, such as mistreatment of workers and harsh conditions of its HM Prison & Probation Service in the United Kingdom. The company allegedly was forced to compensate its workers millions of dollars for violating their employee rights provided by the United States' constitution by denying staff members rest and meal breaks. Additionally, G4S was accused by its Australian employees working in Manus Island in Papua Guinea of failing to expose to a risky working environment. G4S employees' accusations on the company's gross misconduct contradict its indicated values of respect and integrity, teamwork and innovation, and passion about security and safety in the world.
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Financial Costs of the G4S Scandal
According to a report by James Moore in the Independent on Tuesday 9th, 2019, G4S incurred a 63% decline in its profits after compensating workers who had legally sued it for mistreatment. The company was ordered by the court to pay millions of dollars as compensation for workers' extra unpaid overtimes imposed on the latter, which violated the United States' labor laws. Furthermore, G4S paid £9.9 as a fine for the HM Prison & Probation Service's deplorable conditions, which resulted in the denial of a deal to manage the Birmingham Prison that would have been an additional source of revenue in 2018 ( Moore, 2019) . Therefore, G4S incurred financial costs for its failure to adhere to basic compliance and regulation policies that mandate organizations to observe the human rights of employees, by failing to offer workers breaks.
Society Costs of G4S Scandal
The outright failure to observe the company's internal operational compliance and regulations obligations by refusing to provide a favorable working condition and for employees in the United States propelled a tarnished reputation and goodwill of G4S. The society no longer viewed the company as a provider of secure solutions because it failed to proffer a proper job environment to its internal stakeholders, which was vital for successful business outcomes, such as profitability increase in the long-run. Additionally, G4S executives lost their reverence position, as employees viewed the latter as having a severe lack of values, ethics, and morals that are essential for the organization's effective management. Moreover, consumers in the United States who subscribed to G4S services started to hold a negative view of the company after the publication of its internal operations problems.
Problem Statement
The failure to observe compliance and regulation policies advances organizations' adverse consequences, manifested through increased financial and social costs.
References
G4S. (2018). Integrated Solutions in a Connected World. Integrated Report and Accounts 2018 , 1-232. Retrieved from https://www.g4s.com/-/media/g4s/global/files/annual-reports/integrated-report-extracts-2018/g4s-full-integrated-report-2018.ashx
G4S. (2020). Our vision and mission. Retrieved from https://www.g4s.com/en-id/who-we-are/our-vision-and-mission
Moore, J. (2019, April 9). G4S has faced a series of scandals so why is it a member of FTSE4Good? Retrieved from https://www.independent.co.uk/news/business/comment/g4s-private-prisons-scandals-birmingham-prison-us-employee-rest-breaks-annual-report-executive-pay-ftse4good-a8861456.html
