Asian Journal of Research in Banking and Finance
Year : 2016, Volume : 6, Issue : 12
First page : ( 1) Last page : ( 10)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2016.00053.5

Corporate Ethics: Shell Game (A Case Study on Amway)

Nagpal Harshul, Freelance Researcher

Online published on 17 December, 2016.

Abstract

Ethics are moral guidelines which govern good behaviour. So behaving ethically is doing what is morally right. Behaving ethically in business is widely regarded as good business practice. An ethical decision is one that is both legal and meets the shared ethical standards of the community. In our daily life we come across many of such scams, scandals and corporate frauds which is lowering the dignity of such ethics. The case study tries to investigate the pros and cons of Amway and to make an understanding of its business orientation in Indian context. There have been several complaints against this fraudulent company of indulging in money circulation scheme in the name of selling products. Who has been offering a ‘good business opportunity‘ to become rich in easy ways. In effect, the business of Amway India has been completely shut down for the time being in the Arabian coastal cash-rich State of India – Kerala. The corporate sector in India faces the highest threat with 42% of the companies experiencing fraud as compared to the global rate of 27%. Increase in fraud rates is a major concern among companies. Often, companies in India also have to become victims of swindling practices like suppliers’ kickback, corruption and bribery; as there is lesser judicial activism in addition to more political involvement in almost every sphere. The woes of the system are that even the public and the victims/consumers are ignorant about these frauds and do not want to take any sort of action for the same. That is the reason these frauds are growing like a forest fire which needs to be stopped to bring back the incorporation of ethical traits in corporate business.

Top

Keywords

Ethics, Amway, Corruption, Activism, Fraud.

Top