The Question Discuss your thoughts Ethical or Not Ethical
Is the decision profitable? Yes, the decision making made by Mr !a"u gi#e profit to the company This is because, he had manipulating the company$s financial statement figure and he claim that !s %&' crore for their operating profit (as against !s %) crore reflect the actual operating profit* +y this manipulated ,atyam computer ser#ices limited has good reputation -hen they a-arded as good go#ernance company and gain larger in#estor and ac.uired huge client confident by their strong financial statement /ence, ,atyam make higher profit for their company /o-e#er it -ill be profitable to auditor firm too because, in this cases, 0rice 1aterhouse 2oopers recei#ed double payment from ,atyam company since they audited the company for nearly ' years and did not unco#er the fraud 3rom the cases, the decision made by Mr !a"u the chairman of ,atyam and the auditor firm is unethical Is the decision legal? (legal #alues* No, the decision making made by Mr !a"u is illegal This is because Mr !a"u had manipulated ,atyam financial statement by falsified the bank account -ith balance, that did not e4ist /e created numerous bank statement and created %555 fake salaries amount in generated the fraud The internal auditor also made illegally action by created fake customer identities that reflect to India 6a-The global head of internal audit also forged board resolutions and illegally obtained loans for the company In the cases, the decision made by Mr !a"u is unethical because it break the rules and la-s Is the decision fair to decision maker (The audit firm* 7 the stakeholders? No, the decision that made by Mr !a"u is not fair to stakeholder 8 good go#erned company, they should make fairness and accountability decision in their financial statement for their stakeholder information In this cases, Mr !a"u is made unfair decision to-ard their stakeholder by manipulating the financial statement of the company 2onse.uently, the accountability of the financial statement is treated and it -ill resulted bad reputation to the company 1hen the decision become public, this unfair decision may being it$s company$s auditor and auditing profession into disrepute -ith the public The public -ill claim bad perception to-ard 0rice 1aterhouse 2oopers that the auditor failed to lent credibility to the financial statement and thereby failed to protect the public and shareholder interest 3rom the #ie- of fairness in this cases the decision maker made a unethical decision because the decision is unfair to all stakeholder Is it the right thing to do? (personal #alues9 personal beliefs 7responsibility* No, the decision made by Mr !a"u is not a right decision right decision to do 8s a decision maker Mr !a"u should consider to the other rights of all and not conscious to-ard company profit only The decision made by Mr !a"u gi#e impacted negati#ely on the rights of stakeholder in therm of legality and fairness In this cases, the decision made -ould be considered s unethical because he pro#ide or disclosed fake information and manipulated the financial statement -ithout attention by company$s board, senior managers and auditors 8s a stakeholder they ha#e right to kno- all the decision that Mr !a"u made to protect their interest The decision is unethical because Mr !a"u not consider the degree of his stakeholder right in the decision making Does the proposal pro#ide the highest profit to all 7 -ould it benefit stakeholders in future? 1ould it bring about future sustainability? Is it sustainable de#elopment? (en#ironmental #alues* No, the proposal not pro#ide the highest profit to all and its not gi#e benefit to stakeholder in future 3rom the en#ironmental #alue or perspecti#e, the decision appears to ha#e nothing to do -ith the company$s impact on the sustainable de#elopment +ut, to the e4tant that the proposed decision made in their financial statement by Mr !a"u -ill impacted negati#ely on future sustainability de#elopment and not gi#e benefit to all In this cases the decision not treated to sustainability of the company only but, it threated the Indian stock market -hich is it fell dramatically upon the disclosure of ,atyam scandal :ncertainty per#aded the market during ;anuary as in#estors lost confidence in India<s markets The decision is unethical because its not gi#e future sustainability to company and the go#ernment itself