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Running head: ETHICAL ANALYSIS AND EVALUATION Ethical Analysis and Evaluation Author's Name Institutional Affiliation
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ETHICAL ANALYSIS AND EVALUATION What are ethics and why are they important in global banking and business? In the words of Garrett (2010), ethics is defined as "the process of evaluating decisions, either before or after, with respect to the moral standards of society." Some of the fundamental ethical values that should govern any business include fairness, accountability, honesty, and integrity. One of the notable benefits of ethics in global banking and business is a positive corporate image and reputation. According to Pruzan (2001), ethical business practices are fundamental tools for constructing a positive corporate image and ethical brand, which in turn affects how the company attracts and retains customers, especially in the highly competitive global market. Business ethics enable firms operating in international business to build customer loyalty. A study carried out by Nielsen (2015) established that "66% of global consumers say they're willing to pay more for a sustainable brand." Moreover, business ethics enable firms operating in international business to avoid costly legal problems. According to Menezes (2016) failure to comply with the established rules, regulations and standards can easily put the company at loggerheads with the authorities, which not only costs the company in fines and penalties but also negative publicity. Ethical compliance in the global banking sector helps to better understand the causes of ethical malpractices and thus develop solutions to address them effectively (Pruzan, 2001). In the long run, business ethics eventually lead to sustainability and higher returns by creating value. Summary of Case Essentially, this was basically a bribery scandal involving Walmart's violation of the internal accounting controls provisions as established under the U.S. Foreign Corrupt Practices Act. The company's subsidiaries in Mexico, India, China, and Brazil had been operating without the
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ETHICAL ANALYSIS AND EVALUATION necessary anti-corruption related internal accounting controls between 2000 and 2011. Lack of sufficient anti-corruption accounting controls saw Walmart's subsidiaries constantly pay various third-party intermediaries "without reasonable assurances that certain transactions were consistent with their stated purpose or consistent with the prohibition against making improper payments to government officials." Moreover, over the same period of time, Walmart failed to sufficiently investigate and resolve the allegations of bribery or enact sufficient mitigation measures to the known risks. Who was (were) the individual(s) and company (ies) involved? As pointed out earlier, this scandal involved Walmart's subsidiaries in Mexico, India, China, and Brazil. A comprehensive investigation carried out by the Justice Department established that Walmart's bribed the Mexican authorities to obtain permits to build stores. Further investigations
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