Table of Contents

Why are some countries perceived to be more unethical? 4

CORPORATE GOVERNANCE COULD AVERT UNETHICAL ISSUES 5

Introduction

From Enron, WorldCom and Satyam are some of the well-known scandals that have been revealed, it would be right to say that the corporate accounting fraud is majorly increasing both in frequency as well as severity. According to the research evidence which have clearly indicated the growing number of frauds which have not only questioned the integrity of the financial report, but at the same time have immensely contributed towards the substantial economic losses have severely eroded the confidence of the investors regardless of the reliability that is associated with financial statement. The increase spike in white-collar crime should be stopped by heavy or stiff penalties, exemplary punishments as well as they should also use and effective enforcement of law to put a stop on such issues. The report will include a very famous and prominent case of unethical behavior of the that is Satyam Computer’s, it is one of the creative-accounting scandals, which have prominently thrown a light towards the need and the importance of ethical corporate governance. from that the report also includes how these unethical behaviors have impacted the organization as well as the customers.

Ethical issues in the organization in terms of Consequentialists ethics and non-Consequentialist ethical theory

In the Satyam computer scandal, it was seen that promoters of the company have raised money got involved in insider trading of the company’s shares. Ramalinga and his brother along with their family members in the names of 330 company promoters used to buy lands during the phase of April 2000 to January 2009 and sold them at 3.9 crore shares collecting in ₹ 3029.67 crores (Lal Bhasin, 2020). These types of actions could be considered as a non-consequentialists issue as its results are purely based on the rule and regulations written by SEBI. Apart from that Satyam's accounting report that was submitted on September 7, 2008, conveyed that has gathered the interest of ₹ 376 crores, However, that was non-existent. The organization had made a bogus impression about its fixed stores adding to be about ₹ 3318.37 crores while they held FDRs of pretty much ₹ 9.96 crores (Lal Bhasin, 2020). This is a type of consequentialist issue because when you miss calculation in accounts then its results show that there is something wrong in the entry. another major issue that was seen in the chiefs at the Satyam Board never analyzed the activities of their Chairman. They didn't bring up criticisms when the administration chose to contribute 1.6 billion dollars to obtain a 100% stake in the two land firms advanced by Raju's children which were in gross infringement of the Companies Act 1956 (Lal Bhasin, 2020), under which no organization is permitted without an investor's endorsement to procure straightforwardly or by implication whatever another corporate element that is esteemed at more than 60% of its settled-up capital. It is a non-consequentialist issue because the results are based on sections mentioned in the Companies Act 1956 (Lal Bhasin, 2020).

AFFECT OF UNETHICAL ACTIONS DONE BY THE BUSINESS

Some industries display a history of unethical behavior

Why are some countries perceived to be more unethical?

CORPORATE GOVERNANCE COULD AVERT UNETHICAL ISSUES

MITIGATING STRATEGIES

There are many ways through which unethical behavior could be mitigated in the workplace setting.

•Code of ethics: one of the ways would be that it should be customary for the organization to have a code of ethics, that is a collection of practices and principles which the organization promotes and believes in, and accordingly they should work on the corporate value. it is very important for the organization to outline more specific policies that are associated with employees, that highlights the employees should work in a certain situation, especially when it comes to ethical code of conduct not only for the organization but as well as for the customer perspective. creating a code of ethics will help the organization in providing a sense of fairness and will also provide clarity towards the rules and repercussions for the employees as well as the leaders, and will make them more aligned towards achieving the organizational goal ethically (Hansen, 2016)..

Conclusion

References

Lal Bhasin, M., 2020. Corporate Accounting Fraud: A Case Study Of Satyam Computers Limited.

Reuber, A. and Fischer, E., 2009. Organizations Behaving Badly: When Are Discreditable Actions Likely to Damage Organizational Reputation?. Journal of Business Ethics, 93(1), pp.39-50.

Lipman, V., 2020. New Global Survey Reveals The Most Ethical (And Unethical) Countries To Do Business In. [online] Forbes. Available at: <https://www.forbes.com/sites/victorlipman/2016/06/09/the-most-ethical-and-unethical-countries-to-do-business-in/?sh=6d426bdf7230> [Accessed 9 December 2020].