1 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 ...

1. 1
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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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)