In 2008, the Indian economy witnessed one of the most devastating blows to the outsourcing world.

Satyam computer services, an Indian multinational company was the front for one of the biggest scams to hit the market of informational technological services. Mr. Ramalingam Raju, the chairman, confessed to have forged the accounting books overestimating revenues and earnings and stated that 1.4 billion dollars in cash and bank loans, listed as assets never existed. The scandal raised questions about the accounting standards and regulations of India The size and scope of such a fraud sheds light towards one of the most significant ethical problems multinational companies face; corruption. Corruption is a part of almost every society in the world today. It occurs at all levels, from local and national governments, civil society, judiciary functions, large and small businesses, military and other services. As corruption undermines political development, democracy, economic development, the environment, public health care, it affects all elements of society, whether in poor or rich nations. Corruption is a broad term, that includes the offer and receipt of gifts, hospitality or expenses, political contributions and facilitation payments. It can be applied to a number of circumstances such as fraud, embezzlement, extortion, and bribery. According to criminal law, a fraudulent activity is an intentional deception made for personal gains or to hurt the interests of another. Multinational Corporations’ like Satyam and even the NASDAQ are hot beds for fraudulent activities. These activities are deemed as unethical business practices and can leave the company as well as the market severely damaged. Multinational companies face numerous challenges when entering new global markets and are responsible for ethical problems like unfair labour practices, corruption, false advertising, environmental issues in the host countries. The globalisation of the worlds economies and the intense competition, require the international business community to adopt standard rules and regulations. Multinational companies need to be dependable and reliable. They are accountable for all their actions. Business ethics help multinational companies to create a stable, healthy global community. They are a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. They are the do’s and don’ts of a business. They play a very major role in helping the company maintain a good brand image for itself. Consequentialism and Deontology are two normative ethical theories which help understand business ethics. These theories help us differentiate between what is ethical and what is not. As a consequentialist and a deontologist would have very different arguments surrounding corruption, in this essay I will try to explain the different theories thereof.

Although corrupt practices are frowned upon. it will still be unethical to do those things. rather than ones own self. it is wrong to steal. Deontological theories of ethics are almost synonymous with Kantianism. it is wrong to lie. A moral rule is one that would has been required by nature. The Greek word ‘Deon’ means duty and obligation. laid upon us by reason. It is wrong to cheat. Motive Consequentialism is about affairs that results from the motive to choose an action is better or at least as good as each of the alternative state of affairs that would have resulted from alternative actions. utilitarianism is an ethical theory that is concerned with what is best for everyone. Thus from the view point of a consequentialist’s. It helps distinguish between good and bad actions. It claims the moral worth of an action is judged by the end result of the action and that one can only weigh the morality of an action after knowing all its consequences. a business decision that is influenced by consequentialist thinking would be the decision to give bribes or gifts to government official or suppliers or even managers if it helps benefit the company as well as making all the employees happy. it will still be deemed unethical behaviour by the multinational. Deontology is an ethical theory which states that all actions are based solely on the right or wrongness of the action. Even if giving bribery to a government official would mean for the employees to have a safer working environment. Immanual Kant. also saying that the end of an action is not what makes it right or wrong but instead the motive of the person doing it.Consequentialism is an ethical theory which states that the consequences of ones actions is the final basis for the judgement of the rightness of that action. Therefore we can say Deontological ethics or deontology is the normative ethical position that judges the morality of an action based on the action's adherence to a rule or rules. Multinational companies practice a number of unethical actions while managing businesses . Egoism takes in account what is good for the individual. so Deontology claims that rules and regulations fetter us to our duty. so even if an action causes good. To some it up. deontology claims an action is right only if it is in accordance with a moral rule or principle. Corrupt practices like fraud and bribery are just a means for personal gain. it believes in doing deeds that are beneficial for others. Ethical Altruism is that part of consequentialism that can be summed up in the three words “live for others”. after a philosopher. Different forms of consequentialism differ over what the good thing is that should be maximised. In Mozi’s state consequentialism the moral good is state stability and in Jeremy Bentham's utilitarianism the moral good is pleasure and individual happiness. Therefore. In the case of human rights violations. It states that end consequences be limited to happiness and well being of people and the community. People argue that consequentialist and deontological theories do not necessarily occur at the same time. Kantianism follows that an action Is right if it is in accord to the principle of morality. Another form of consequentialism is called Egoism. This is because deontologists do not equate the right with the good. Acting for the benefit of others is just a fallacy. is required by rationality and would be the object of choice of rational beings. it is purely deontological but others argue that it is mostly consequentialist in the way that it contains certain restrictions that restrict the agents actions. The interests are carried out how people view the consequences that deal with them. with human motivation being a part of it. a morally right act is one that will produce a positive outcome and relatively good consequence. It follows that the right or wrong of an action is refereed separately from its outcome.

government officials. Consequentialism implies that the end justifies the means. ethical theory takes a different approach . Sometimes these actions are not favourable to anyone but the business entity or a manager or a stakeholder alone. sometimes bribery might be the only way to carry out businesses for multinational companies. but sometimes they benefit the entire organisation and the local community. But at times it is not possible to predict the consequences of all corruption practices. so there can be no general consequentialist justification of corruption although there may be situations where corruption is needed to avoid greater evils. Bad consequences would be allowed if they were surpassed by good consequences.globally. It may be the only way for them to enter these markets. Many multinational companies bribe employees . suppliers. extra commissions and large sums of money to get their work done. the police force. if a policy leads to corruption. If the result of such an action. would benefit a large number of people. If bribery. thus corruption is wrong if it results in negative consequences. a consequentialist would support and encourage corruption. then it is justified as the consequences of this form bribery are well being and happiness of a majority of the people. It can be advocated if it leads to a marginal improvement for the majority of people. So in principle. In some developing countries. an action or practice is ethically wrong if it has bad consequences. or deontological. Thus. ends up helping the business make large profits. Duty-based. They give gifts. Consequentialism is a suitable framework to discuss corruption and corruption practices performed by Multinational companies in foreign markets across the different continents. therefore increasing the welfare of the company and its employee‘s . From a consequentialist’s point of view. This idea implies that you distinguish between the different consequences. people working in other organisations. bribery is justified. like India. Pakistan. If evidence of good consequences from bribery are found. then according to Utilitarianism. managers.

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