1 business and ethical values corruption and white collar crimes
DESCRIPTION
3 White Collar Crimes 1) Financial Irregularities 2) Manipulations in the share market 3) Insider trading 4) Inflated/wrong accounting practices - Satyam, ENRON 5) Violation of Foreign Exchange RegulationTRANSCRIPT
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Business and Ethical Values
Corruption and White Collar Crimes
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BEV: Corruption & White Collar Crimes
White-collar crime or socio economic crime is a crime committed by a person of respectability and high social status in course of his occupation, which is not of the nature of physical violence.
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White Collar Crimes
1) Financial Irregularities
2) Manipulations in the share market
3) Insider trading
4) Inflated/wrong accounting practices - Satyam, ENRON
5) Violation of Foreign Exchange Regulation
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White Collar Crimes
Tax evasion and avoidance
Income Tax / Customs duty evasion - Under invoicing
NPAs and Loans
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White Collar Crimes
Violation of standards, weight and measures – Non conformance, false claims; fake products
Theft and misappropriation of public property and funds
Unfair competition – False advertisements
Professional misconduct
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Corruption
An inducement to wrong by bribery or other unlawful meansA departure from what is pure and correct.
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Corruption
Some root causes of corruption Changing moral values, Greed Projected life styles of the rich – influence of TV.
Cinema Poor justice system Demand & supply Influence of political people in decision making Lack of clearly defined rules and guidelines
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Corruption
Some forms of corruptionIllegal gratificationCommissions & Expensive giftsUsing connections / money for favoursPreference to own community/party members
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Corruption
Some cases of corruption in society1) Govt certificates (land etc) clearances, – Colleges, AICTE, Liquor
2) Employment, transfers 3) Medical Services- Private practice by govt doctor,
right/wrong
4) Political donations
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Corruption
Can corruption be justified? TTE gives the seat meant for him to an unreserved
sick passenger and accepts Rs.100/- You are in a hurry and are stopped for over
speeding. A clerk does out of the way service to a needy
person and accepts gift/money offered. A highly skilled govt. doctor operates a critically ill
patient in a private hospital and charges for that. TIP – Bribe as a motivator??
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Corruption
Why corruption is not right ethically Loss of trust in the system Benefits the rich, at the cost of the poor Can it become a universal practice – Emmanuel Kant Country’s image is affected, No respect for Indian abroad Other countries doing business with India – reluctant Denying someone’s just opportunity Threat to society – low quality construction, abuse/misuse
of scarce resources, national security eg. Defense deal
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Corruption
Can corruption be eradicated?Unlikely, but it can be reduced ……… Value based education and ethical upbringing Creating public awareness – Govt, NGO, Religion Strong and timely legal action Strong professional bodies Corporate commitment to ethical culture Appreciating ethical practices in corporate