UNIVERSITY OF GUYANA

LECTURER: Ms. S. Roberts & Ms. R. A. Bentick

MNG 3203: BUSINESS, SOCIETY & ETHICS
Name: Stephen Francis
USI: 1034145
Date: 5 February 2023

Individual assignment
Ethical breaches in the workplace erode a company’s foundation. This can occur more so if these
breaches go unnoticed. These breaches can significantly hurt the image of the organization. In
this paper, we will examine how ethical breaches can affect companies, their employees, and
society. More so, several examples will be used including the SSL case (RE: Jamaica Re: Usain
Bolt) to further explain the effects of ethical breaches.
Firstly, companies are affected when ethical breaches occur, this can be seen when companies
practice tax evasion and tax avoidance. For example, Sol Guyana Inc. was recently ordered to
pay over 2.7 Billion dollars in corporation tax owned to the Guyana Revenue Authority (G.R.A).
This was from the period 2014 to 2020. This non-payment of corporation tax and not adhering to
business rules and regulations is an ethical breach. This can cause the business not to be issued
with the relevant compliances and permits to operate. This can significantly affect the company's
operation.
More so, Stocks and Securities Limited, SSL currently has a major investigation into the
misappropriation of over $830 Million defrauded from their clients. This breach of the
company's ethics can erode the trust in the financial institution. This can cause investors to
withdraw their money from out of the institution and potential investors not to invest in the
company. Trust is fundamental for the success of any financial institution, this current situation
deteriorates the relationship with Stocks and Securities Limited (SSL) and its clients.

Secondly, employees are also affected when ethical breaches occur, this can be seen in local
security firms paying below the required minimum wage and not paying National Insurance
Scheme (NIS) contributions for their employees.
An article dated 20 August 2019 from Guyana chronicle states “Several security firms, as well as
other companies that owed tens of millions of dollars in National Insurance Scheme (NIS)
contributions” The payment below the minimum wage puts employees at a disadvantage for
them to provide for their families and enjoy a quality standard of living. This is in breach of
‘Section 12 of the Labour Act Cap 98:01 provides that an employer shall pay wages
either agreed between employer and employee or prescribed by law.’
More so, the non-payment of the National Insurance Scheme (NIS) contribution means that
employees are left without insurance in the event of an accident or ailment. More so, employees
will not be eligible for pensions under this scheme. These ethical breaches have significant
consequences on employees.
More so, employees of Stocks and Securities Limited, SSL are likely to be seen as dishonest and
untrustworthy. This can develop into a stigma that may hinder them from accessing jobs in the
financial sector. More so these employees of the firm may be heavily investigated and monitored
to prevent the reoccurrence of fraud of this nature.

Ethical breaches also affect the society in which the company operates. The activities of
companies must be done in an environmentally friendly manner. For over 100 years bauxite has
been mined in Linden Region 10 Guyana. This causes a significant amount of dust to be released
into the air which reduces the air quality. This leads to respiratory complaints for the residents.
More so, Exon Mobile is currently flaring excessively putting carbon and other gases in the
atmosphere. Over 15 Million cubics per day. This is an ethical breach and contributes
significantly to global warming.
Stocks and Securities Limited, SSL breach of ethics can lead to the loss of confidence in
financial institutions in Jamaica this can lead to clients calling up their investments or taking
their monies out of the company. This can cause a total crash for the company.
Ethical breaches can have significant consequences on a company, however, safeguards can be
put into place to prevent these ethical issues.
As it relates to Sol Guyana Inc.'s non-payment of corporation tax from 2014-2020. Competent
accounting professionals should be employed who would put the relevant systems in place to
accurately track transactions to prepare the corporation tax yearly.
More so, Stocks and Securities Limited, SSL should not allow clients' accounts to be monitored
by one person. All accounts should be monitored regularly by supervisors and managers. More
so, serious and in-person verification and authorization procedures need to be implemented.
Another safeguard against ethical issues affecting employees is the enforcement of labour laws
and tax laws of companies. This means companies that are not compliant with the relevant laws
will not be granted the relevant licenses and permits to operate.
More so, the regulatory and oversight body of Stocks and Securities Limited, SSL should be
stern with the company when it does not reach the standard of operating as a financial institution.
Stocks and Securities Limited, SSL was in breach of these standards since 2017 according to the
Financial Services Commission (FSC) report. "Stocks & Securities Limited (SSL) was flagged in
2017 by the staff of the Financial Services Commission (F.S.C) for a culture of non-compliance
and mismanagement of client funds.” The company's operations should have been halted until
these issues were resolved.
References
(n.d.). Retrieved from https://guyanachronicle.com/2019/08/20/over-50-employers-in-court-for-
nis-payment-other-breaches/.
https://newsroom.gy/2020/10/21/labour-ministry-warns-security-firms-about-breaching-labour-
laws/. (n.d.).
Individual Assignment.