ASSIGMENT ON ETHICAL PRACTICES
Submitted to: Mr. Nirmalya B. Biswas
Submitted by: Ashish S. Thomas
PwC is the second largest professional services firm in the world (after Deloitte) and one of the 'Big Four' accountancy firms. About 50 % of PwC’s revenue comes from auditing. PwC had audited about 139 companies in India in the year 2008. Of this, 97 are listed and 45 were part of BSE 500 Index Including Satyam. Whenever we talk about Unethical governance in accounting practices the 1st and foremost name which comes in to our mind is of Price Water house Coopers, PwC has followed unethical governance with many of its clients. But, It came into limelight is Indian scenario in a broader aspect due to the fraudulent activity done by Satyam (Ramalinga Raju) with the accounting books. After the Satyam scandal PwC Realized the Importance of ethical Corporate Governance. PwC was a Statutory Auditor for Satyam from past many years it iv very clear from various reports that there was indeed hand in gloves of PwC directly or indirectly with Ramalinga Raju(Chairman, Satyam Computers). What lead to Satyam fraud? Statutory Auditor is often considered one of the "four pillars" of corporate governance. And the unethical practices in PwC Intl is clearly visible in various accounting Scams around the world. What really happened? Why it happened? And how this Unethical governance practices can be stopped? These are the various questions which are needed to be addressed. After Satyam Scandal the management of PwC realized that these unethical practices are hampering their brand image and they might lose their market/clients. It started following various strategies to rebuild the brand. But it’s very clear from the case of PwC that “The Means Should Justify the End.”
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| Executive Summary
| Company Overview
| SATYAM Scandal
Ethics: in a simple word we can say that the ethics is a system of moral principles. It affects the decision making and leadership quality of an individual. It basically concerned with what is good for an individual and also for the society. It is also can be described as the moral philosophy. The term ethics is derived from the Greek word ethos which means habit, custom, character or disposition. Now day’s ethical theories has been divided into three areas by philosophers; meta ethics, normative ethics and applied ethics. Meta ethics: it deals with the nature of moral judgment it considered the origin of ethical principles Normative ethics: it deals with content of moral judgments and also the criteria for what wrong or right. Applied ethics: it consernce with the controversial topics like animal rights, capital punishments and wars. The following aspects comes under ethics
How to live a good life
The language of wrong and right
Our rights and responsibilities.
Decisions of what is good or bad, etc.
Code of ethics:
Now day’s most of the organization are implementing code of ethics in the company polices during induction or the regular training the COE generally is more deeply defined statement of values and believes that describes the organization. It is been implemented in the following areas. Conflict regarding interest
Information about competition
Company record assets
Practices by management and employees
Ethical business practices:
Following are few ethical business practices that a organization should be followed to build a healthy reputation in the market and insuring the smooth run for an organization Investors: timely payment of the interest and ensuring the safety of the money Employees: faire promotion opportunities proper training healthy working conditions salary payment on time. Customer: the complete information regarding product and services should be made available. The personal...
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