Large Case: Financial Scandal at Air Mauritius
A financial scandal can be described as the effort of faking an accounting statement for the purpose of economic growth (Bhasin, 2013). It involves activities in a firm that lack ethics or the general codes of corporate governance (Ecologics, 2012). It is a phenomenon that is steadily rising on severity and magnitude. This paper is going to answer a question concerning the Large Case: The Financial Scandal Involving Air Mauritius.
Favoritism is considered as the act of offering unjust special treatment to one individual at the cost of others. Thus, it can be said that the culture of favoritism is common among the emerging countries because most of the top jobs are always occupied by people of the same tribe, origin as well as corruption. For example in the “large case,” it is clear that when the media released information concerning the resources that were concealed in a secret account. The members of the board could not speak out concerning this basically because they were too gaining from this fund. Consequently, this does associate with the notion of particularism in that there was unbroken devotion to the company. This is demonstrated through the “director of legal and international affairs” for not being able to reveal the information concerning disbursement of special commissions by the “director of internal audit.”
The possible connotations involving the kind of swindle at Air Mauritius comprise the airlines getting extreme losses when attempting to assure its clients that all will be well. The Airline can also face a progressing challenge of public confidence in the company. Any connection with an organization that has committed or experienced fraud can be a problem as well as embarrassing for the individuals who undertake their tasks in the Airline. The clients can lose trust in the Airline.
References
Bhasin, M. L. (2013). Corporate Accounting Fraud: A Case Study of Satyam Computers Limited. Open Journal Accounting, 2, 26-38
Ecologics. (2012). Financial Scandal, Corruption and Sensorship: Part 2. Retrieved from https://ecologics.wordpress.com/2010/02/03/financial-scandal-corruption-censorship- part-2/
