BUSINESS ETHICS IN VIEW OF

CORPORATE FRAUDS

Presented by
Arushi Sharda - 2K20/UMBA/07
Shivani Joshi - 2K20/UMBA/38
CORPORATE GOVERNANCE

Corporate governance is something altogether different

from the daily operational management activities enacted
by a company’s executives. It is a system of direction and
control that dictates how a board of directors governs and
oversees a company.
KEY PILLARS OF GOOD CORPORATE GOVERNANCE

● Effective Corporate Structure

● Relationship with
Stakeholders
● Fairness and excellence
● Integrity and transparency
● The Board as Trustee
● Compliances
● Responsible leadership
GOVERNANCE ISSUES FACED BY THE COMPANIES
● Accountability is necessary for effective corporate governance

● Accurate reporting of financial information can seriously affect the

company’s image

● Unethical practices lead to loss of business, revenue and customers

thereby affecting the long run sustainability of the Company.

● The errors and omission by the Company may lead to unnecessary

regulatory fines and penalties.

● Adherence of code on Corporate Governance will ensure better

management

● Independent Directors should function their roles and responsibility

with due care and without any fear
 Business Ethics
Ethics derives from the Greek word "ethos", which means character or
custom, distinctiveness, sentiment, moral nature or guiding beliefs of a
person, group or institution.

Business ethics encompasses the principles and standards that guide

conduct in the conduct of business.
Businesses need to balance their
desire to maximize profits with
the needs of their stakeholders.
 CORPORATE GOVERNANCE AND BUSINESS ETHICS
❖ Ethics is the first line of defence against corruption while law
enforcement id remedial and reactive.

❖ Good corporate governance practice

cannot guarantee any corporate failure.
But the absence of such governance
standards will definitely lead to
questionable practices and
corporate failures which surface
suddenly and massively.
CORPORATE FRAUDS
Corporate fraud consists of activities
undertaken by an individual or
company that are done in a dishonest
or illegal manner, and are designed to
give an advantage to the perpetrating
individual or company.
Corporate fraud schemes go beyond
the scope of an employee’s stated
position, and are marked by their
complexity and economic impact on
the business, other employees and
outside parties.
 Types of corporate frauds

The three categories of frauds are CORRUPTION

ASSET FINANCIAL
MISAPPROPRIATION STATEMENT
FRAUD FRAUD
Major corporate frauds in India

1. YES Bank Crisis

2. Punjab National
Bank Case
3. The Satyam Scam
CORPORATE GOVERNANCE & SMART CONTRACTS

Smart contracts are simply programs stored on a

blockchain that run when predetermined conditions are met.
Smart contracts are one of the key
components of many blockchain-
based ecosystems, and an
especially important element of
many application-focused
blockchains.
BENEFITS
THANK-YOU