Gold Trading Firm Gennevas Offices Raided Accounting Essay

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Business ethics can be defined as business morality. There are 3 types of ethical theories, which are Consequentialist Theories, Deontological Theories, and Virtue Ethics.

Consequentialist is also known as utilitarianism. This theory focus on consequences. It can be used to identify alternative actions and consequences to stakeholder.The advantages of Consequentialist are the theory is practical. It is already underlines business thinking. The barriers of this theory that is difficult to determine all the consequences.

Deontological is focus on duties, obligations, and principles. It is also about justice and law. It focuses on doing what's "right" rather than doing what will maximize societal welfare. It is about the decisions based upon abstract universal principle. The universal principle included honesty, promise-keeping, fairness, rights, justice and respect. It is also a right approach found in public policy debates. The barriers of this theory is evaluating rule, principle or right to follow and deciding which takes priority. Reconciling deontological and consequentialist approaches is difficult when they conflict.

Virtue ethics is about the moral character. It focuses on integrity of moral actor rather than the act. Virtue ethics is more about moral character. It also considers character, motivation and intentions. Virtue ethics can rely upon community standards. Besides, it faces the barriers that is limited agreement about community standards. Many communities haven't done this kind of thinking, and community may be wrong.

2.0 Gold Trading Firm Genneva's Offices Raided

2.1 Stakeholder Analysis

Stakeholder

What does the organisation mean for the stakeholder

What does the stakeholder mean for the organisation

Bank Negara

Organisations should have follow the rules and regulations set by the Bank Negara.

The rules and regulations set by the Bank Negara should be fully complying.

Employees

The organisation is paying salary to the employees when the employees work for the organisation.

Employees arehelping the organisation to get profit and achieve goals.

Trader

Organisation gives opportunity for trader to get income through gold trading as they act as intermediaries.

Organisation gets profit when traders are trading their products.

Executive Director

Organisation is running under executive director's control. Well managing will bring more profit to the organisation.

The central management of the organisation. The flow or changes in the organisation is on the executive director's decisions.

Companies Commission of Malaysia (SSM)

Registered organisation should run the business ethically under its rules and acts.

Organisation should run the business ethically under its rules and acts.

2.2 Article Analysis

Genneva Malaysia Sdn Bhd is a gold trading company which is started in 2010. Recently we can observe a lot of news of Genneva from the news. This is because Genneva Malaysia faced the biggest crisis over the years.In the past few years, Genneva promises 24% return per annum, which is monthly 2%. On October, Genneva Malaysia SdnBhd and its related companies were being investigated. The investigation included illegal deposit taking, money laundering, tax evasion and avoidance, false description including misrepresentations, appointment of agents without license and failure to lodge statutory documents.

Genneva Malaysia Sdn Bhd promised 24% return per annum is not supported by the company current asset according to the Bank Negara. Agents misrepresentations made the huge impact to the market and investors. The high return promised was a scam stated by the Bank Negara. According to Ethical theories, Deontology theory states that business ethics should not be misrepresentation. It's the company's duty to tell the truth about the company operations. Companies should have disclosed their own principle to avoid any mislead or misunderstanding to the people.The company should not be hiding the truth.

Genneva Malaysia SdnBhd audit report shows that the company had gain enough profit to promise 24% invest return. From the latest investigation, the audit report was proven not true. Company should have practice virtue ethics. Company should not provide a fake audit report. Every company should focus on doing things right. An audit report is a report shows that the company account and the money flows. Audit report is to prove that the company internal flowing. Annual report should be done with utmost good faith.

Besides that, the liabilities of Genneva Malaysia SdnBhd had increasing sharply in the last few years. In the company financial report, states that company gains profit every year. It stated as the company income is more than enough for the 24% investment return per annum. According to the latest investigation, the liabilities had increasing and not as what is show in the financial report. This incident shows that the report is not true. Genneva Malaysia SdnBhd should have practiced the Virtue Ethics as the company should know doing the right things.

2.3 Relevant Act

Companies Act 2006

Public Finance and Audit Act 1983

Audit Act 1994

Misrepresentation Act 1972

3.0 Lynas Get Temporary License

3.1 Stakeholder Analysis

Stakeholder

What does the organisation mean for the stakeholder

What does the stakeholder mean for the organisation

Chairman

Organisation is running under chairman's control. Well managing will bring more profit to the organisation.

The central management of the organisation. The flow or changes in the organisation is on the chairman's decisions.

Atomic Energy Licensing Board (AELB)

Organisations should have follow the rules and regulations set by AELB.

The rules and regulations set by AELB should be fully complying.

Employees

The organisation is paying salary to the employees when the employees work for the organisation.

Employeesarehelping the organisation to get profit and achieve goals.

Malaysia Citizen

Organisation should run the business without harming the citizen or the living environment.

If the organisation business can help to improve the citizen, they will provide support to the organisation.

Supplier

Organisation purchase material from the supplier.

Supplier provides material to ensure the business running well.

3.2 Summary of Article

Lynas Corporation LTD in Australia is to create a reliable, fully integrated source of Rare Earths from mine through to market, and to become the benchmark for the security of supply and environmental standards in the global Rare Earths industry. The foundation of this strategy is from the Mount Weld in Australia which is the richest known deposit of Rare Earths in the world. In fact, the rare earths able to improving energy efficiency, enhancing environmental protection and miniaturisation of digital technology. As we know everything has pros and cons. The rare earth's wastes have radioactive and it will be store in Malaysia known asThe Lynas Advanced Materials Plant (LAMP), currently is under construction near Kuatan, Gebeng in Pahang, Malaysia.Recently we can observe a lot of news from newspapers and television aboutLynas. Malaysian wererally with a slogan, "Save Malaysia, Stop Lynas". It is because the radiation will affect the gene of DNA.

Lynas Malaysia SdnBhd mining of rare earth would produced dangerous radioactive. If the wastes do not managed properly, they will harm the human being, regardless of workers or citizens. The waste produced form the rare earth mining, consequence will become harmful if did not manage properly. Consequentialist theory states that worst managing of business make worst consequences. The corporation should have practiced the Consequentialist theory. The waste product will harm the Earth and environment. The corporation should have know the consequence in which the waste product is highly radioactive and will probably change the DNA of human being and affect the next generations.

Lynas Malaysia SdnBhd chemical process plant in Kuantan had made a huge impact to the residents in Kuantan.If the corporation did not handle the waste properly, human will be harmed. It is the corporation duties to treat the waste without harming the environment. Deontology theory should be applied for the corporation. They should know their duties and principles, which are run business without harming the environment and citizens. Minimizing the chemical radioactive is their main duties and principles.

In Malaysia, most of the Malaysian disagree Lynas Corporation to run its business in Malaysia. The main reason is Lynas can't prove to the people that they will manage the waste well. People are afraid of the chemical radioactive will affect their next generations. Australia government had given approvals for the Lynas plant on the coast near a population that could provide a workforce. But Lynas chose to come over Malaysia and set up the chemical plant. Peninsular Malaysia would be dead meat if the inevitable happens. If an accident occurs, the fallout could reach within an area of 80km radius,Kuantan, Pekan, Kemaman and most of the areas around Pahang and Terengganu would be affected. Long term the two states will be rendered useless and unliveable.

Besides that, Lynas Corporation is somehow dragged into politics by irresponsible politicians who are out of genuine issues to fight for.Lynas Corporation in Malaysia spent only 2 weeks to get approval from the Malaysia government. This is even faster than in their homeland Australia. Lynas Corporation showed a statistic prove that most of the Malaysian support Lynas get the license and built the chemical plant in Kuantan. Malaysian reaction proven the statement was incorrect. Malaysian protest in Gebeng had proven this statistic is not true.

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3.3 Relevant Acts

Environmental Protection Act 1990

The Bribery Act 2010

Companies Act 2006

4.0 Conclusion

Genneva Malaysia SdnBhd unethical issue had been a big impact to the market. It can be said as cheating or is a scam. As their hiding their financial problem and liabilities, they keep on misrepresent and mislead investor. Lynas Malaysia Corporation can't treat the waste product well. As the waste product did not treat well, it will harm the citizen; affect the next generation of human being. The next generation would become mutated. Lynas used unethical ways to get the approval from Malaysia government is totally oppose by the Malaysian.

Every company running business should following the 3 theories: Consequentialist Theory, Deontology Theory, and Virtue Ethic. Consequentialist theory is about thinking the consequence whenever decisions made. Deontology is about thinking the duties and principle whichever starting a business. Virtue ethics is about thinking what is the right thing and correct ways to solve a problem.

The author learnt that running a business should be truthful to avoid misrepresentation to the people. Every business should be run in ethical way, without harming the environment, and also present financial status ethically.

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