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Ethical Analysis On Lucent Technologies

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INTRODUCTION - "Ethical Analysis:Lucent Technologies"

In February 1996, AT&T renamed itself Lucent Technologies. This decision was made because complexities in the marketplace and within AT&T had increased. AT&T decided to restructure the communications giant.

Lucent became a major player in optical, data, and wireless networking. It was also a web-based enterprise solution, which linked public and private networks. Communication software, professional network design, consulting services, and communication semiconductors also became a part of lucent in the following years. The company completed 38 acquisitions totaling more than $46 billion, including a $24 billion purchase of Ascend Communications, which made Lucent the leading provider of data networking equipments for service providers.

Lucent technologies are now known as a service and software provider that drives next-generation communications networks. This company has two segments, each organized around a separate customer set to which it sells products or services. The Integrated Network Solutions segment (INS) sells to global wire line service providers, including long distance carriers, traditional local telephone companies and Internet service providers. INS offers a range of software, equipment and services primarily related to voice networking, data and network management and optical networking. The Mobility Solutions segment sells to global wireless service providers and offers software, equipment and services to support the needs of its customers for radio access and core networks. The Company's segments are supported by a number of central organizations, including Lucent Worldwide Services, Supply Chain Networks, Bell Labs and the Corporate Centers.

In fiscal year 2001, the global telecommunications market deteriorated, resulting in a decrease in the competitive local exchange carrier market and a significant reduction in capital spending by established service providers. This trend intensified during fiscal year 2002 and continued into fiscal year 2003. Reasons for the market deterioration included general economic slowdown, network overcapacity, customer bankruptcies, network build-out delays and limited availability of capital. This deterioration effected lucent technologies also and the company had to go for major downsizing and restructuring.

Lucent Technologies and Business Ethics

Lucent technologies believe that their customers, shareowners, suppliers and competitors are the foundation for their reputation as an ethical company. This reputation tells investors and their customers that they can rely on lucent technologies and trust on what they say. They try to do everything to protect this reputation by making sure that these actions and policies are not only legal, but also in line with the highest levels of business ethics and integrity.

For example, their chief compliance officer reports directly to the CEO, with responsibility for ensuring that Lucent is in strict compliance with the laws and regulations that govern our business around the world.

Board of Directors of Lucent Technologies also provides independent oversight and guidance to their leaders in order to enhance their long-term interests of shareowners and other stakeholders.

They believe that good governance principles and continues improvement in their practices and policies will excel top management performance under difficult market conditions, thus delivering the most value to their shareowners, customers and employees.

They believe that as they bring the world closer together, they should remain committed to upholding their core value.

Lucent technologies is known for their strong sense of social responsibility:

Lucent believe that with innovation and progress, comes social responsibility. Lucent is trying to change the way world communicates -- without losing sight of their obligations to its resources and its people and the community. Every day, engineers in lucent technologies are working to develop new materials and processes that can make their products more environmental friendly. They ensure that their suppliers are providing them with energy-efficient goods and services. Along with all the above they also do social programs for the society like, lucent technologies funds skills development and education programs for youth and lucent technologies foundation for continued support to the community which is based on diversity programs.

Total focus is on serving their customers and benefiting the society:

Lucent Technologies aim is "Creating new possibilities to enhance people's lives by transforming the way the world communicates." They are committed to being a world-class organization by focusing on customer satisfaction through improvement programs, processes and activities. Customers are a major focus for Lucent's leadership teams. They are committed to anticipate customers' needs with highest quality products and services in the timeframe and manner required. They are also committed in continuously improving customer satisfaction through processes and programs that enable every Lucent associate to get the job done correctly for customers.

In Lucent Technologies customer satisfaction is measured by both formal (customer satisfaction surveys) and informal (customer dialogues, meetings, etc.) feedback mechanisms to continually gauge the customer experience. With this focus of serving customers, they are able continue business in such a high competitive environment and to make significant improvements in overall customer satisfaction.

Equal Opportunity Employer

In today's discriminated society Lucent technology is known for their equal opportunity employment. They have now included sexual orientation in their non-discrimination policies

Also the research shows that it is one of 13 corporations in the USA to earn a perfect score of 100% on the Human Rights Campaign Foundation's first Corporate Equality Index. The index rates large corporations on policies that affect their gay, lesbian, bisexual and transgender employees, consumers and investors.

Responsibilities relating to Business and environment

Lucent Technology has a special department known as Environment health and Safety. They believe that environment, health & safety (EH&S) considerations are integral elements of any informed business decision as they contribute not only to their global competitiveness and reputation but also



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