Tse Lai Sze
Q2. 1. What are the main ethical issues for Professor Ballistico?
Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for any given situation. Some of the controversy regarding business ethics is no doubt due to different understandings of what constitutions morality or ethics in the first place. In this case, Ballistico is a professor who is conducting a research and has come to some new findings. According to his professions, he should be honest and objective to his research and it is his responsibility publishes the results as what it originally was to enable the …show more content…
The assumption here is, despite of the misconduct described in the case, Satyam has fulfilled its very basic economic and legal responsibilities.
Legal VS Unethical
There is a grey area set out by the case - when there is lack of regulations / controls on the practice of the corporations, whether they are ethical although they contribute a lot to the local society.
Satyam and the other companies in the case were originally very reputable firms in India, but the following misconducts are revealed: * Empty cash of 1b Pounds * Conflict of interest from a huge amount of “related-party” transactions * Misuse of insider / sensitive information of their clients to provide improper benefits to bank staff
As we assumed before, all the deeds of the companies legally follow the local regulation due to loophole in the governance / law system, while they heavily hurt the wealth of involved stakeholders because of their mismatching of pubic expectation and practice. In conclusion, their conducts are legal but unethical.
Indeed, charitable actions should not be the one and only focus of the firm, other issues such as transparency, corporate governance, accountability, ethics, and anti-corruption to stakeholders. Actually charity should only be regarded as the foundation of each corporation with strong corporate social responsibility to help local residence.
If Indian companies do not