Corporate scandals affect more than just the organisation concerned. The tremors go much deeper. The Business slump of 2008 exposed more than a weak market; it also exposed several floundering firms, accounting scandals and the domino effect of thoughtless hedge funds. Globally the automobile giant Volkswagen was found to have intentionally set controls on its diesel engines to misrepresent emission levels (2015). In India, the Satyam computer Services scam where the firm’s leaders confessed that the company’s accounts had been falsified (2008). Not very long ago, business tycoon Vijay Mallya created headlines for his failure to repay about 7, 000 crores rupees to banks and his absconding from India. Another firm Speak Asia hoodwinked 24 lakh investors, with the scam extending to countries like Italy, Brazil, and Singapore.
Executives with scandal-ridden companies on their resume have lesser bargaining power and are ostracised.
