Analysis of a current ethical issue relating to the

business environment and identification of a

mitigation strategy
Contents
Introduction................................................................................................................................................3
An Overview on Sustainability.................................................................................................................3
Corruption..................................................................................................................................................5
Discussion on the forms of Corruption...................................................................................................5
Bribery....................................................................................................................................................5
Extortion.................................................................................................................................................6
Cronyism................................................................................................................................................6
Nepotism................................................................................................................................................6
Parochialism..........................................................................................................................................7
Influence peddling.................................................................................................................................7
Graft........................................................................................................................................................7
Embezzlement.......................................................................................................................................7
Strategy to minimize corruption..............................................................................................................8
End Impunity..........................................................................................................................................8
Reform public administration and finance management.................................................................8
Promote transparency and access to information............................................................................8
Empower Citizens.................................................................................................................................8
Close international loopholes..............................................................................................................8
Conclusion.................................................................................................................................................9
References................................................................................................................................................9
Introduction
This study aims to explore current ethical issues in the business environment and to
establish a mitigation strategy. A summary of the significance of sustainability and
inefficient activities is provided in the report. Corruption is described as a key ethical
problem in the study. A thorough insight into the essence of corruption and various
manifestations of corruption is provided in the report. Finally, the study addresses the
strategy for eliminating corruption.

An Overview on Sustainability
Fulfilling our own needs without compromising the capacity of future generations to fulfill
their needs is refers as sustainability. Sustainability isn't just environmentalism. We also
find questions about social justice and economic growth rooted in most concepts of
sustainability. We also require social and economic resources, in addition to natural
resources.1

Without undermining the capacity of future generations to meet their needs,

sustainability focuses on meeting the needs of the present. There are three foundations
of the philosophy of sustainability: economic, environmental, and social, also known
informally as earnings, earth, and people.

 Environmental Sustainability
Ecological integrity is maintained, all the environmental structures of the planet
are maintained in equilibrium, while human beings consume natural resources
within them at a pace that they can replenish themselves.

 Economic Sustainability
Human societies around the world can preserve their freedom and have access
to the financial and other services they need to meet their needs. Economic
systems are intact and practices, such as healthy sources of livelihood, are open
to all.
 Social Sustainability
Universal human rights and basic needs can be accomplished for all individuals
who have access to adequate resources to keep their families and societies safe
and sound. There are only leaders in safe societies who guarantee that personal,
labor, and cultural rights are upheld and all residents are protected from
discrimination.

The effects of business on society and the environment are termed as sustainability in
business and its main goal is to impact those areas positively. In the past few years,
many businesses understand the importance of sustainability and practiced it such as
reduction of pollution, plastic bags, and recycling wastage. In the last few years, almost
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91 percent of plastics has harmed the environment. Organizations are increasingly
inclined to incorporate the demands of society into their business strategies, not only to
respond to growing demand from customers, workers, and other stakeholders, but also
to seek competitive advantage opportunities (Bielak, Bonini, & Oppenheim, 2007;
Bonini, Mendonça, & Oppenheim, 2006). Leadership has been recognized as an
important element in fostering the dedication of organizations as a whole (U.S.
Environmental Protection Agency [USEPA], 2001), promoting cultural ideals rather than
a means of control against such commitment (Higgins, 1995). Similarly, Marrewijk
(2004) defines a collection of ideal organizational styles and establishes a framework of
values and associated institutional frameworks for each type, such as governance and
the position of leadership. Fineman (1996) addresses the role of leadership in the
change process, pointing out that when executives foster employee dedication to
belonging to a socially responsible company, green practices take place. Briefly, for the
corporate adoption of sustainable practice, leadership plays a crucial role. Bansal
(2003) indicates that organizational commitment to sustainability is promoted when the
term is purchased by top management, but also when lower organizational levels
participate in sustainability, i.e. when the concerns of workers and organizational values
are congruent. Agents of transition, including those noted so far, maybe internal or
external, such as investors, vendors, regulatory authorities, and even clients. Henriques
and Sadorsky (1999) link the understanding of stakeholders' stresses by management
with more constructive environmental commitment undertakings. Sharma and
Henriques (2005) suggest a typology that connects various types of strategies of
stakeholder control with different sustainability practices implemented by organizations
to expand this analysis. Not only do they affirm that stakeholders affect sustainability
practices, but they also point to multiple stakeholder pressures that influence those
practices. To establish a consistent reporting framework and increase the reliability of
operational data, the company would understand the criteria of such integration. As a
core component of the sustainability program, D'Aquila,(2012), considered accountant,
their presence strengthens the organization's sustainability capacity. If the company
cannot able to handle these areas in the organization then the various issue is creating
in the business such as inequality, social injustice, and environmental degradation.
Sustainability in the business drive success by mitigating the business challenges.
Sustainability in business creates a long term value by making plans for operating in the
social, cultural, financial, and economic environment. With the increase in the corporate
responsibility in the business and increase in transparency, the need for sustainability
also increased. Social, environmental, cultural demands are referred to as the triple
bottom line of sustainability. Instead of short-term benefits such as the next quarter's
earnings report, sustainability allows corporations to frame decisions in terms of
environmental, social, and human effects for the long-term. 2 Sustainability creates and

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maintains a friendly environment that benefitted both the human and the environment in
a productive manner

Corruption
Corruption is a major challenge to countries around the world, weakening democratic
institutions, leading to governmental instability and eroding trust. By suppressing equal
competition and discouraging investment and commerce, corruption threatens the
economy. It affects vulnerable communities overwhelmingly by preventing social
inclusion, fostering inequality, and inhibiting prosperity. Corruption, by distorting
electoral processes, perverting the rule of law, and establishing an inefficient system of
government, threatens the foundations of democratic institutions Corruption is a threat
to security and security systems. In leadership, democratic institutions, and the rule of
law, this may lead to frustration and mistrust, and eventually to spirals of rage and
unrest. Corruption promotes drug and human trafficking and other forms of organized
crime, making our society more dysfunctional and dangerous.

Discussion on the forms of Corruption

Corruption types vary but can include bribery, extortion, cronyism, nepotism,
parochialism, peddling of influence, grafting, and embezzlement. Corruption, while not
limited to these practices, can encourage criminal enterprises, such as drug trafficking,
money laundering, and trafficking in human beings. Democratic corruption is often
considered a misuse of government authority for other reasons, such as suppression of
political rivals and general police brutality.

Bribery
Black's Law Dictionary describes Bribery as the offering, giving, obtaining, or
demanding of any item of value to influence the conduct of an official or other person in
charge of a public or legal obligation. In essence, bribery is' dishonest solicitation,
approval, or transfer of value in return for official action' concerning governmental
operations. A bribe is an unlawful or immoral gift or lobbying attempt given to affect the
actions of the recipient such as money, commodities, rights of action, land, privilege,
privilege, emolument, items of value, advantage, or merely a pledge to induce or
influence, in an official or public capacity, an action, vote or influence of an individual.
Generally, there are four key parties in every business-related bribery transaction: the
briber; the bribed individual, and their respective organizations. 3 Although it is not
always the case, these entities are often direct victims of bribery, such as the
government agency that overpays for services as part of a kickback scheme or the
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private company that, as a result of the conduct of the briber and bribed individual,
enters into contracts on unfavorable terms. Many indirect victims of bribery may also
occur, including people who suffer when funds are diverted from public services and
law-abiding firms who miss contracts because they fail to pay bribes.

Extortion
Extortion is the form of coercion to gain benefits. It is likely to constitute a criminal
offense in most jurisdictions; the majority of this article deals with such situations. The
simplest and most prevalent form of extortion is robbery. 4 Extortion is often referred to
as the "protection racket" because racketeers sometimes interpret their demands as
payment for "protection".Extortion is also carried out by organized crime. Exaction
applies not only to extorting or demanding and receiving something by coercion but also
implies the infliction of something such as pain and misery or making others experience
something unpleasant in its formal definition.

Cronyism
This entails, for example, appointing "cronies" to positions of authority, regardless of
their qualifications; this contrasts with meritocracy, in which appointments are made
based on qualification. Cronyism is the practice of partiality in granting jobs and other
benefits to friends or trusted associates, especially in politics and between politicians
and supporting organizations. In certain jurisdictions, it is not necessarily necessary to
gain the profit to commit the crime, and it is sufficient to commit the offense to render a
threat of violence that refers to a provision of payment of money or property to avoid
future violence. Politically, "cronyism" is used derogatorily to mean buying and selling
favors, such as votes in legislative bodies, doing favors to associations, awarding
favorable ambassadorships to exotic countries, etc. Although cronyism refers to a
spouse or friend's partiality, nepotism is the granting of family favor.

Nepotism
Nepotism is favoritism in various fields, including business, politics, entertainment,
sports, religion, and other activities, given to relatives. With the appointment of nephews
to important positions by Catholic popes and bishops, the word originated. Inside
organizations, nepotism may also happen when an individual is hired because of their
family connections. It is commonly viewed as immoral, both on the part of the employer
and the worker. Nepotism at work can mean greater opportunities at a career, obtaining
the job, or getting paid more than other people in a similar situation. Claims are made
for and against jobs because of a family relationship that is most prevalent in small,
family-run enterprises. Nepotism may, on the one hand, provide stability and continuity.

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Parochialism
The state of mind is parochialism, whereby one focuses on tiny parts of a problem
rather than understanding its larger meaning. It consists of being narrow more
generally. It is a synonym of' provincialism' in that respect. It may be compared to
universalism, particularly when used pejoratively. 5

Influence peddling
Influence peddling is the practice of using one's government influence or relationships
with people in power to gain favors or favorable treatment for another, usually in
exchange for payment.6 Often referred to as impact or trade traffic in influence. Selling
of influence per se is not inherently illegal, as the Organization for Economic Co-
operation and Development (OECD) has also used the changed word "undue influence
peddling" to refer to illegal lobbying activities. 7

Graft
The graft is a type of political corruption, as understood in American English, being the
unscrupulous use of the authority of a politician for personal gain. Similarly, when funds
intended for public programs are purposely misdirected to maximize the gains for
private interests, political graft exists.

Embezzlement
Embezzlement is an act of withholding, either to be retained or to be used for particular
purposes, of assets for the transfer of those assets by one or more persons to whom
the assets have been entrusted. Embezzlement is typically a methodically executed,
premeditated crime with safeguards to mask the criminal transfer of the property that
happens without the affected person's knowledge or consent. Sometimes, to minimize
the possibility of discovering the misallocation of funds or resources, it involves the
trusted person embezzling only a small portion of the sum of the funds or resources
they obtain or manage. When successful, embezzlements can continue without
detection for several years. Victims also understand that when a reasonably large
proportion of the funds are needed at one time, they have been duped. An independent
accounting of all real and liquid assets is required for a major institutional
reorganization.8

Strategy to minimize corruption

To counter corruption, there is no magic bullet. Many countries have made considerable
strides in eliminating corruption, but practitioners are still searching for remedies and
5
https://link.springer.com/referenceworkentry/10.1007%F978-1-4020-5614-7_2533
6
https:www.ganintegrity.com/compliance-grossary/influence-peddling/
7
https:www.ganintegrity.com/compliance-grossary/influence-peddling/

8
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proof of their effect. For an organization & culture, reducing corruption is a major
challenge. Corruption occurs in all aspects of an organization and culture. Different laws
and regulations have been formulated to curb corruption in the past few years, but they
have not been successful. There are internal and external factors in the culture that
encourage corruption. Here are five avenues for people and governments to make
progress in fighting corruption:

End Impunity
To ensure the corrupt are disciplined and break the cycle of immunity, or freedom
from penalty or failure, effective law enforcement is necessary. A robust
legislative structure, law enforcement branches, and an autonomous and efficient
justice system are assisted by active enforcement approaches. With campaigns
like Transparency International's unmask the corrupt movement, civil society will
help the process.

Reform public administration and finance management

In several countries, reforms aimed at enhancing financial management and
strengthening the position of auditing agencies have had a greater effect on
reducing corruption than public sector reforms have had. The transparency of
budget details, which avoids waste and misappropriation of money, is one such
change.

Promote transparency and access to information

There is a long history of government accountability, freedom of the press,
transparency, and access to information in countries that are active in curbing
corruption. Access to information increases the responsiveness of government
bodies, while at the same time having a positive impact on a country's level of
public involvement.

Empower Citizens
A sustainable approach that seeks to create mutual trust between people and
governments is to increase citizens' desire for anti-corruption and encourage
them to keep the government accountable. In certain cases, for example,
community monitoring programs have led to corruption detection, minimized
funding leaks, and increased the quantity and efficiency of public services.

Close international loopholes

Corrupt public officials across the globe will not be able to launder and cover the
profits of stolen state properties without access to the international financial
system. Major financial centers urgently need to put in place ways to avoid the
absorption of illegal money flows by their banks and cooperative offshore
financial centers.
Conclusion
By highlighting different aspects of sustainability, the report gave a full overview of the
idea of sustainability in the industry. Both positive and negative aspects of sustainability
are discussed in Bot. In particular, a wider perspective on corruption and various types
of corruption has been given by the report. By discussing their existence and effect on
the organization, different types of corruption are addressed. Discussion on a plan to
reduce corruption was presented in the study. Despite the introduction of many laws,
corruption has been a stagnant organizational and social problem. It was really difficult
for the organization to stop corruption. It is also difficult to see how to incorporate
policies to combat corruption.

References
file:///C:/Users/Admin/Downloads/what-is-sustainability.pdf

investopedia.com/terms/s/sustainability.asp

www.oecd-ilibrary.org>what-are-bribery-and-corruption

https://www.researchgate.net/publication/312191727_The_Process_of_Extortion

https://link.springer.com/referenceworkentry/10.1007%F978-1-4020-5614-7_2533

https:www.ganintegrity.com/compliance-grossary/influence-peddling/

https:www.ganintegrity.com/compliance-grossary/influence-peddling/

https://corporatefinanceinstitute.com/resources/knowledge/other/embezzlement