Integration of Business Functions

Assessment Term 1 3.1

Joshua Jackson.J
Banner Id B00408102

There is no Ethics in Business-the Business of Business is

Business
Business ethics is the study of appropriate business policies and practices.
Business ethics are the moral principles of standards and behaviour of an
organization on how a business must process itself. It implies of either being
good or bad, right or wrong behaviour, in pursuing business, on the basis of
expected behaviour which must be accepted by the society 
It is also the moral principles and standards for what is good for the society.
But ethics is only been agreed by the law but it is not been practiced well
enough.
I would like to say with an example that caused a scam on Kingfisher that is the
Fall of the King of Good Times.
Vijay Mallya was the only child of being successful While his father lived in
Bangalore running his breweries.
It all started to go wrong in 2005 when he launched Kingfisher Airlines, which
he billed as a “five star hotel in the air” but based on the low-cost business
model of Ryanair and easy Jet in Europe and South West in the US. This is
because that Since it became challenging to manage the business, he decided
to contact foreign companies for investing in his business. This seemed a
possible solution for his financial crisis airlines and has never made profits as
his business module had been in trouble. Since it was entirely a government
work it took to much time for the approval. So he could not pay the salaries to
his airline employees due to his downfall and busy schedule.
Known as the “King of the Good Times” because of his e lifestyle, once his
airline was in trouble, Mallya sought to raise cash by selling a majority of
United Spirits to Diageo and some 40% of the brewing empire to Heineken.
The last possible option which he was left with was taking the loan from the
banks.
After receiving loans in masses, he applied for a scheme called ‘debt
restructuring, In this case, the debt was converted into equity, which means to
wave off the debt, and instead, the company would give its shares to the bank
upto the value of debt. Moreover Vijaya Mallya had failed he failed to exercise
his fiduciary duties to his employees, shareholders and investors,
he compromised corporate ethics while buying the Deccan Airlines,
He paid Rs 30 crores to the owner of Deccan Airline named G.R. Gopinath,
without letting his shareholders know, which showed how little he cared for his
shareholders and created suspicion of dishonesty,and he misused his power
and connections to get a loan from banks. Vijay Mallya, despite his dooming
business and low credibility, since he was a member of Rajya Sabha (Upper
House) and had good political connections. It resulted in banks officials to get
involved in the landmark kingfisher scam.
Since Vijay Mallya is one the persons in the wanted list of India he had tried to
convince government officials But however he is unable to. So he offered to
pay the 100% debt to the banks. All his attempts to persuade the government
have been in vain.
Vijay Mallaya has lost all his challenges and failed to illustrate the business
ethics by not following the standards.

This case has been proved that Ultimately, It is been driven from the loss
caused by the kingfisher scam since it was their hard earned money collected
by the government as tax for the welfare of everyone.
REFERENCES:

1.https://www.investopedia.com/terms/b/business-ethics.asp.
2. https://thecompany.ninja/kingfisher-scam/.
3. https://www.thedrinksbusiness.com/2020/05/the-downfall-of-the-king-of-
good-times-vijay-mallya/.
4. https://newsable.asianetnews.com/life/7-moments-from-vijay-mallyas-life-as-
the-king-of-good-times https://newsable.asianetnews.com/life/7-moments-from-
vijay-mallyas-life-as-the-king-of-good-times.
5. https://www.news18.com/news/india/header-rise-and-fall-of-vijay-mallya-
1376835.html.
6. https://www.bemoneyaware.com/blog/vijay-mallya-rise-fall-king-good-
times/.