ethical environment in a company may be created and corporate scandals may be avoided.

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:

  1. 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.
  2. 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.
  3. 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.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *