Come to the last week of blog!
This week, I’m going to discuss a topic which regard on an
issue related to the financial ethical.
As we can observe that tons and ton of scandals have been reveal each year
which majority are due to unethical conduct in the business. Taking example
such as the recent Volkswagen emissions scandal, Enron, American Insurance
Group (AIG), Lehaman Brother, Bernie
Madoff's ponzi scheme and etc etc. The fun facts is that, ended with the
scandal those culprit which are resulting the fraud did not get into punishment.
For instance, AIG rewarded themselves
with over $165m in bonuses after posting the largest quarterly corporate loss
in history in 2008 and getting bailed
out with taxpayer.
What causes the
unethical conduct happened?
Looking though the
recent Volkswagen, the car were built with a software device that detects when
the vehicle is undergoing emissions tests and activates full emissions control
measures to produce results far better than those achieved in real-world
driving. The net result is that cars pass strict US emissions limits under
laboratory conditions, but when unplugged from the testing rigs, the EPA states
that the diesel engines emit nitrogen oxides (NOx) up to 40 times. Perhaps, the
company were to edger to gain much profit which resulting them to have pay for
the price of scandal!
Almost one in five
of the stories about the financial sector – which includes insurance and payday
lenders – was about the bonus culture and pay, followed by almost one in five
on fraud and theft – a reflection mainly of the manipulation of Libor. Then,
each with fewer than 10 per cent, came mis-selling, the treatment of
stakeholders, tax avoidance, bribery and money-laundering.
The issue in retail
was mis-treatment of stakeholders, mainly treatment of staff. It was followed
by supply chain issues, notably sweatshop labour and poor working conditions. Mining, in contrast,
was criticized mostly for bribery and corruption.
In conclusion, business
man and company should not be doing unethical conduct in order to for short-term
gain. Looking into the consequences that the tax-payer or consumer have to suffer
for the wrongdoing of the company. This unhealthy habit and ethical should be eliminated
in every company especially financial industries.
Good post!!!
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