Name : Toshik Shrimali

Roll no : pgsf1938

Professional Ethics
Diary Entry
My learnings on each session

1 class was all about the introduction of the subject, the class interaction and about the
course outline that, what assignments we have to cover in the class and their
weightage, what are the objectives of the particular session and the overall course as
also the Professor Maneesh pandey introduced us about their corporate life. In that
session we came to know that what are the basics of the ethics as we were already
familiar with that term but sir made it very much clear when he relates the concept
with the corporate world.
After explaining the basics of the professional ethics, he discussed with us about the
principles of the business ethics relating with the corporate as how companies should
follow these principles in their daily corporate life. As sir gave us an exercise of
writing our own viewpoints that what principles should be followed by the business to
avoid poor ethics practices. He talked about the basic theories of the business ethics
and the moral issues occurring in the corporate and we discussed about it by relating
to the companies and came to know that how tackle such situations wisely and
effectively without any lose of money and any position in the organisation.

Fundamental questions in ethics

Q1.What sort of person should I strive to be?

“Every single day, I think about the type of person I want to be”. “I think about what I
want others to see when they look at me and what I want them to think”. “Most
importantly, I think about the way I see myself”. Will I be happy with who I am
tomorrow? Will I be content five years from now?
“These questions are the reason why I strive to be my very best every single day”. “I
have my goals in mind and I hope to become someone that people can look to as a
force to be reckoned with”. It all starts with a state of mind. “I strive every single day
to be someone I can be proud of”. These are the 25 people I strive to be.

1. The Idealist

“I want to strive to a higher purpose and envelop myself in ideals of life as it should
and could be”.

2. The Dreamer

“How can you attain success if you don't dream about what you want and how you
can get there?”

3. The Activist

“There are so many issues in today's society that need our attention”. “I want to do my
part to bring light to our world's problems”.

4. The Brainiac

“I want to expand my mind and always continue looking for information”. “You can
never learn enough about the world around you”.

Q2.What values are important?

1. Courage

“Courage is about doing what you believe needs to be done — not in the absence of
fear but in spite of it”.

2. Kindness

“Kindness is about treating others the way you want to be treated”.

“It’s more than just holding your tongue when you’re tempted to say something
unkind; kindness looks for ways to make life better for others”. “It takes delight in
lifting others up and reminding them they’re not alone, invisible, or insignificant”.
3. Patience

“When someone is pushing your buttons, taking your time or attention away from
something you want to finish, or making your life harder in some way, you practice
patience by putting yourself in the other’s shoes, trying to see the situation from their
perspective, and responding with kindness and respect”.

4. Integrity

“Integrity is about acting and speaking in accordance with your beliefs”.

“If you say one thing but do the opposite, witnesses to this contradiction aren’t likely
to recognize you as a person of integrity”. They’re more likely to accuse you of
hypocrisy.

Q3.What standards or principles should I live by?

1. Be committed.

“Even the most prepared-for journey can have unexpected twists and turns. Edwards
explains being totally committed is a key ingredient to reaching your final destination,
regardless of hitting any bumps in the road”.

2. Do exactly what makes you love yourself.

“It’s always really important to fill your life with doing things that make you happy
with who you are”. “If you don’t have a passion for what you’re doing, it’s easy to get
tired of your situation quickly”. “If you do what makes you love yourself, you may
feel more balanced and in sync”.
3. Set an attainable routine.

“People set goals, have dreams, and want different things in life, but they may not
achieve them because they don't actually start working toward them”. “Never put
things off until tomorrow”.

“Scheduling time for exercise and healthy meals will fuel your body with energy and
nutrition for the day”. “Getting proper sleep will have you feeling rejuvenated and can
affect your body and mind”. “The article also states being organized can lead to
overall less stress and anxiety”. A positive routine can lead to positive results.

Case Discussion

Also in the class we learnt how a business can have a downfall if one does not abide
by the ethics

and the code of conduct. In the class various cases were discussed which had stories of
downfall

of business just because the people didn’t follow the ethics. One such case was of
Satyam

Computers which is discussed below:

About the Case

The King of good times VIJAY MALLYA who did fraud with more than 10 banks
and other

financial institutions. Malaya takes the loan from the bank by telling the banks that he
wants to

expand his business for which he needs a loan and also the airline market was also
down, the

increase airport charges and providing luxurious facility to economy class due to all
these issues

he needs the loan.

The unethical practice he did to the company as he takes the loan from the banks
which he used

for an increase of his assets throughout the world and when the banks approach him to
return the

loan amount but he ran away and left the company and employees all alone the salary
of his

airport staff and other people was in pending till now.

If I was there in his place then I will use those amount in an expansion of the business
because

reaching to that peak during the 2000s is a very thing many companies during that
period are not

able to stand properly due to shortage of funds and other issues, and Vijay Mallya has
an

advantage of political support and support from govt. too so he did this type of
unethical work

and left the country.

Conclusion

At last I want to conclude that ethics serve as a guide to moral daily living and helps
us judge

whether our behavior can be justified. Ethics refers to society's sense of the right

way of living

our daily lives. It does this by establishing rules, principles, and values on which we
can base our

conduct. Being ethical is not the same as following the law.  While ethical people
always try to

be law-abiding, there may be instances where your sense of ethics tells you it is best
not to

follow the law.

Harshad Mehta Case
In 1984, Harshad Mehta became a member of the Bombay Stock Exchange as a broker and
established his own firm called GrowMore Research and Asset Management, with the
financial assistance of associates, when the BSE auctioned a broker's card. He used ‘Ready
Forward Deal’ in making the scam. Exploiting several loopholes in the banking system,
Mehta and his associates siphoned off funds from inter-bank transactions and bought
shares heavily at a premium across many segments, triggering a rise in the BSE SENSEX. The
money earned from banks as a receipt for purchasing government securities was used to
buy shares at high prices to manipulate the stock market. When the scheme was exposed,
banks started demanding their money back, causing the collapse. He was later charged with
72 criminal offences, and more than 600 civil action suits were filed against him. The
banking system faced losses up to 4000 crore.
There’s always a choice in the ways one wants to adopt for making money. This was
unethical as Harshad was illegally trading RFDs among the banks with fake receipts. It was
also wrong to increase the share prices of the stocks.
It was at his place; I would’ve run my brokerage firm more ethically. If I was aware of the
loopholes of the system, I would’ve rather helped in correcting them. It’s not easy to change
the entire system but it can help the shareholders and investors whose hard-earned money
is invested in the stock market. One needs to think about his future generation before going
in into greedy business.

Satyam Scam
In order to boost the share prices of Satyam Computers in 2001, Mr. Raju worked with key
executives to inflate the profits, cash flows and assets of the company. This was done by
creating fake bank statements, invoices, and fake salary accounts. The company also shown
faked loans to get the scam going. Between years 2001 to 2008 Raju gradually dumped
shares onto the market, reducing his stakes from 25% to only 3.6%. The fraud involved Rs
14,000 crore. The promoters alleged to have taken out huge amount of money from the
firm in order to acquire land to help the real estate ventures of the family.
It was unethical on the part of the company to manipulate the Accounts as they act as
communicator of financial health for all the stakeholders.
If I would’ve been involved in the company, we would’ve run the business on a normal
course handling all the losses and hurdles. If any help was needed in the Maytas Company I
would’ve suggested to take borrowings from other sources or may be helped as a guarantor
for the company. Satyam Computers was built with good intentions of the promoters and
they worked hard to make it reach the top IT company in India. It was greed that led to the
fall of such a huge company.