Q26. State how far a sound ethical environment in a company may be created and corporate scandals may be avoided.
Ans. Creating an ethical environment in a company: A sound ethical environment in a company may be created and corporate scandals may be avoided by adopting the following methods:
- Ensuring that employees are aware of their legal and ethical responsibility.: Some ethical organizations are having policies to train and motivate employees towards ethical behavior. To start with, such initiation should be from the top. A number of Companies in India and abroad are being known for their quality and soundness of their ethical program-mes. Companies like Raytheon, Texas Instruments, Wipro are pioneers in establishing ethical environment among the employees enabling them to take ethical decisions.
- Providing a communication system between the management and the employees so that anyone in the company can report fraud and mismanagement without the fear of being reprimanded: In India, Wipro has introduced a helpline comprising of senior members of the company, who are available for guidance of any moral, legal or ethical issues that an employee of the company may face.
- Ensuring fair treatment to those who at US whistle blue words.: This is perhaps the most important and sensitive issue. Fair treatment to whistle blowers is a basic necessity to check fraud. Some acts must be appreciated and that appreciation should be extended from within the company rather than outside.