Abstract

The case examines the unethical business practices of Halliburton Company (Halliburton), a leading engineering and oil exploration services provider. It gives a detailed account of the allegations that the company has been facing over the years. Halliburton was reportedly involved in doing business with countries with which trades were prohibited by the US government. The company was also alleged to have been involved in violating accounting practices by including ‘disputed claims’ as revenues in its income statement. More recently, Halliburton’s subsidiary - KBR was reportedly involved in ‘overbilling’ of oil and food supplies to the US army during the Iraq war in March 2003. The case also highlights the company’s political connections that had benefited Halliburton over the years.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study how adverse business conditions often cause companies to resort to unethical practices.

Keywords

Halliburton Company, Accounting Scandals, Over Billing Allegations, Unethical business practices, Cost Plus Pricing, No-bid Contracts, Political Profiteering, Government's Role in Business