Business Ethics and Corporate Governance, Second Edition

INTRODUCTION

Ethics and values get short shrift in business in two ways; first, by the failure of management and second, by the failure of auditors. Auditors who are expected to be the watchdogs of the organization are often bought in by managements through some profitable assignments. This has led to the rise of the concept of corporate governance which is about promoting corporate fairness, transparency and accountability relating to various participants of organizations.¹ Recent unearthing of corporate frauds both in developed countries and developing and transitional economies revealed the fact that auditors had failed to do what they were assigned to do. They involved themselves in unethical practices and failed to whistle-blow when things ...