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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$s financial statement
figure and he claim that !s %&' crore for their
operating profit (as against !s %) crore reflect
the actual operating profit* +y this manipulated
,atyam computer ser#ices limited has good
reputation -hen they a-arded as good
go#ernance company and gain larger in#estor
and ac.uired huge client confident by their
strong financial statement /ence, ,atyam
make higher profit for their company /o-e#er it
-ill be profitable to auditor firm too because, in
this cases, 0rice 1aterhouse 2oopers recei#ed
double payment from ,atyam company since
they audited the company for nearly ' years
and did not unco#er the fraud
3rom the cases, the
decision made by Mr !a"u
the chairman of ,atyam
and the auditor firm is
Is the decision legal?
(legal #alues*
No, the decision making made by Mr !a"u is
illegal This is because Mr !a"u had
manipulated ,atyam financial statement by
falsified the bank account -ith balance, that did
not e4ist /e created numerous bank statement
and created %555 fake salaries amount in
generated the fraud The internal auditor also
made illegally action by created fake customer
identities that reflect to India 6a-The global
head of internal audit also forged board
resolutions and illegally obtained loans for the
In the cases, the decision
made by Mr !a"u is
unethical because it break
the rules and la-s
Is the decision fair to
decision maker (The
audit firm* 7 the
No, the decision that made by Mr !a"u is not
fair to stakeholder 8 good go#erned company,
they should make fairness and accountability
decision in their financial statement for their
stakeholder information In this cases, Mr !a"u
is made unfair decision to-ard their stakeholder
by manipulating the financial statement of the
company 2onse.uently, the accountability of
the financial statement is treated and it -ill
resulted bad reputation to the company 1hen
the decision become public, this unfair decision
may being it$s company$s auditor and auditing
profession into disrepute -ith the public The
public -ill claim bad perception to-ard 0rice
1aterhouse 2oopers that the auditor failed to
lent credibility to the financial statement and
thereby failed to protect the public and
shareholder interest
3rom the #ie- of fairness in
this cases the decision
maker made a unethical
decision because the
decision is unfair to all
Is it the right thing to do?
(personal #alues9
personal beliefs
No, the decision made by Mr !a"u is not a right
decision right decision to do 8s a decision
maker Mr !a"u should consider to the other
rights of all and not conscious to-ard company
profit only The decision made by Mr !a"u gi#e
impacted negati#ely on the rights of stakeholder
in therm of legality and fairness In this cases,
the decision made -ould be considered s
unethical because he pro#ide or disclosed fake
information and manipulated the financial
statement -ithout attention by company$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
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
(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