Corporate Governance & Business Ethics

Abstract

Business ethics deals with ethical rules and principles necessary for a successful business. It explains the various moral or ethical problems that can arise in a business setting and the responsibilities of persons who are engaged in an organization. The ethical rules are derived from ethical values, which are based on six pillars of character, namely, trustworthiness, respect, responsibility, fairness, caring and citizenship. These values are inseparable from one another and are closely interlinked with each other. They enhance one’s own judgment to take right and good decisions to benefit all sections of civic society. Good corporate governance is an integral part of business ethics where a corporate is characterized by its ethical culture, which remains paramount in its daily operations. In the present complex and competitive corporate world it is regrettably observed that quite a number of corporate units do not attach much importance to ethical values and principles. There are number of scandals rocking the corporate world including the USA, the UK, France, Germany, Japan, South Korea and India involving various types of corporate frauds and malpractices such as, falsification of accounts by showing inflated profits, embezzlement of company funds by dubious means, siphoning of company’s funds through fictitious transactions, etc. Every such corporate fraud is a heinous crime against humanity as it adversely affects and ruins the fortunes of large segments of innocent people. In this paper, the researcher tries to give a review of major Indian companies which were involved in different kinds of financial scams due to their unethical business practices. The researcher also tries to analyze the remedial measures adopted by the Government of India to terminate such malpractices and how effective these measures proved to be with her concluding remarks for suggestions

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