Ethics in Business Assignment

Ethics in Business Assignment Words: 1042

It should be noted that the ADAIR has only analyzed the assets records which are publicly available. The black money & assets is the part of Iceberg hidden from the sight of public & media. Thus the representatives which we are electing for ourselves are stealing from us only. This situation has been growing worse in the present times. Let us analyze this phenomenon and try to understand under what categories it falls. Let us first understand all the key phenomenon’s mentioned In question 1. Cheating: Cheating is often fraudulent and dishonest exchanges.

Usually cheating Is used In context of non-serious frauds. For example: stealing from office stationary, taking undue advantage of office resources, stealing teller/leaves etc. Comes under cheating. 2. Deception: It is the act or practice of deceiving. Thus it is basically pulling out an illusion in eyes of somebody to make him do a transaction resulting in his loss and deceiver’s gain. Thus even changing a consumer behavior/perception based on a wrongful fact shown in advertisement amounts to deceiving the consumer. . Money laundering: It is basically a process of hiding the sources of money and hence redirecting the system’s money to personal accounts through some fraudulent orientations masking as a legitimate transaction. Hence it is a way of transferring black money to white money. It happens in 3 steps: a. Placement: Cash is Introduced into the Flanagan system by some means. B. Layering: It Involves carrying out complex financial transactions In order to camouflage the Illegal source. C.

Don’t waste your time!
Order your assignment!

order now

Integration: the final step entails acquiring wealth generated from the transactions of the illicit funds. In some instance some steps are not present depending on situations; for example, noncoms proceeds that are already in the financial system would have no need for placement 4. Embezzling: Embezzlement means to take will fully, or convert to one’s own use, another’s money or property of which the wrongdoer acquired possession lawfully, because of some office or employment or position of trust.

Embezzlement, therefore, implies three elements: a. Fraudulent appropriation or conversion of money, b. That the wrongdoer acquired because of his office or position, and c. That the said money belongs to the employer or employing company. Thus, embezzlement Is a special type of fraud. 5. Racketeering: It refers to obtaining or extorting money illegally or carrying on Illegal business actively. Racketeering Is used to refer to organized crime actively where In a group with loosely defined hierarchy conduct planned frauds.

Thus based on above description of the terms asked in question we can clearly see that the fraud is not a small one to be classified as cheating. Nor has the money been taken by forcing someone in an organized racket, hence it is not racketeering. The source of money is the public money collected through taxes ; duties hence it is not pulled out by a deception. The wealth increase is very high and the average increase of 295% is 5 times the average increase of Coo’s salaries in the same period.

Hence it clearly establishes the fact that the money which was meant to be used for public policy execution was misused and redirected to personal property & funds. Also the position of office is used to collect bribes in return of passing favor to specific parties e. G. Colgate scam, 26 scam etc. The property rise Just illustrates increase in their personal assets. Many politicians redirect a huge portion of their corrupt earnings to their relatives & family members.

Issues mentioned in Article related to type of Frauds * 3-fold Increase in Assets of re-elected MSP & Meal’s * Increase in Average income of top 100 Legislators by 745% * Cases of Increase of Assets 29 times in 5 years Analysis of Common Frauds Characteristically of Fraud I Method of Deception I Relation with Politics I Applicability in Current Scenario I Money Laundering I Concealing Real Source of Income, Carrying out Complex Actions to make transactions difficult to trace, Legitimate re-entry of illegal Money into Mainstream economy I Ministers concealing Sources of Income, Illegal Investment in Family business, Conversion to white money increasing overall Assets I Yes.

Money Accumulated through various legal sources of income like bribery, embezzlement, corruption is routed through Money Laundering to convert into Legal investments and Property which increases overall Assets of Minister. I Racketeering I Criminal violation of commercial exchange laws, Continued engagement in criminal activities to do organized crime, extortion, coercion I Secretly doing illegal activities in family business and Government organizations which are under control, I No. This is form of organized crime. It cannot be generalized for all MSP and Meal’s. But Asset increase is evident in almost all cases. Hence Racketeering is not one of the major reasons for given scenario. Racketing usually involves coercion which also supports no obvious connection.

I Embezzling I Possession of entrusted funds, fraudulent conversion with lawful possession, Using public assets for own use, permanent possession of entrusted asset, intentional fraud by not maintaining records and transactions, cheating on time, I Possession of various entrusted funds, Illegal permanent possession of government Assets, Using government employees and resources for personal use, embezzlement in ministry owned firms I Yes. Embezzling is one of the major sources of illegal income of politicians. Embezzlement by politicians is called speculation. Embezzling is done to grab large sums entrusted for various welfare schemes and development funds. These funds are directed through money laundering to convert them into legal assets.

I Deception I Making exaggerations, overstatements intentionally, Misinterpreting facts to conceal truth I Illogical promises by politicians on sensitive issues to get electoral benefits, monetary profit and deception. Politicians are earning without substantial fraudulent communication too. Hence it cannot be critical phenomenon. I Cheating I Monetary gains through fraudulent actions, to make people deprive of something by use of fraud or deceit I False statements made to get undue advantage, Seize property of citizens by fraud, Modifying contracts to exploit citizens I No. Cheating alone cannot be reason of Asset increase of politicians because of high volumes mentioned in article. Collection of money through bribery, corruption, embezzlement is faster and involves high volume as compared to cheating.

How to cite this assignment

Choose cite format:
Ethics in Business Assignment. (2020, Nov 03). Retrieved May 18, 2024, from