Learning from Session 1:
1. Ethics involves a system of moral principles and values which helps in distinguishing right from
wrong based on societal and cultural values. People may have personal ethics or a workplace
may have business/workplace ethics to guide the organization.
2. Morals are principles which distinguish right from wrong.
3. In 1982, Johnson and Johnson faced a major crisis with its product-Tylenol. Allegedly, a group of
people had laced the Tylenol capsules with cyanide, resealed the packages and placed them at
various pharmacies in Chicago. This resulted in death of many people. Johnson and Johnson
were quick to act. They recalled all their products. As Tylenol constituted almost 17% of the
company’s net income; the setback adversely impacted the share prices. The recall cost them
millions of dollars. Since the crisis was well handled, the market share and value regained within
a couple of months. They were the first company to come up with Credo. However, this did
tarnish the image and from time to time Johnson and Johnson had run into safe product issues.
It is banned in several European countries.
4. We learnt of Elizabeth Holmes, the owner of now defunct Theranos. In order to gain money and
overnight success, she had claimed her company had developed revolutionary technology which
could perform rapid analysis of extremely small blood samples using company manufactured
devices. A Stanford dropout rose to immediate success and financial gains and was the youngest
billionaire at that point in time. However, upon investigation it turned out that she made
fraudulent claims misleading investors and the government. Currently she is facing several trials
and legal proceedings and if convicted may face long prison time. She has now lost her
credibility and trust in the market besides suffering financial losses.
5. We learnt of Enron’s scandal where the company had misled investors by manipulating their
financial records. They employed creative/ cookie jar accounting to fake their profits in order to
hide their losses. Enron Executive Andrew Fastow was charged with securities fraud, wire fraud,
mail fraud, money laundering and conspiracy in 2002. Enron has since become a well-known
example of willful corporate fraud and corruption. They are now asset-less. We find that
unethical behavior leads to tremendous downfall.
Learning from session 2:
1. The word “Ethics” is a more recent conjecture. However, the idea of formation of structures in a
society, of right and wrong can be dated back to Greco-Roman times. Philosophers like Plato
and Socrates spoke of questioning and seeking the truth, challenging societal norms; discuss
what is right and what is wrong.
2. A conflict of interest is said to occur when an individual makes personal gains from their
professional position, which violates organizational code of ethics.
3. A classic example is that of ICICI bank’s then (2018) MD and CEO Chanda Kochhar. Using her
positional power in the company she had approved out of turn loans worth Rs. 3250 crores to
Videocon group; a deal made to benefit her husband. The CBI had booked her under alleged
cheating and corruption of sanctioning these loans which caused a loss of Rs 1730 crores to ICICI
bank. She has been terminated by the company.
4. A survey in the website [Link] ranks India with the highest percentage (55%) in terms
of conflict of interest and other malpractices at work place whereas Japan ranks lowest. The
survey shows that majorly employees in the junior and middle management are engaged in
unethical practices to improve their personal finances.
5. As per survey, corporate fraud is accounted to lack of efficient internal control/ compliance
system and diminishing ethical values among other reasons.
6. An individual’s behavior is the result of their beliefs, values, and attitude.
7. Beliefs are ideas which one holds to be true and are majorly influenced by society, education,
culture, experiences etc.
8. Values are the things which are important to an individual. E.g. career success, family, wealth,
happiness.
9. This leads to attitude (how we treat others and approach any situation).
10. In conclusion an individual’s behavior arising from the above factors leads to whether the
person is ethical or unethical.