Management: Ethical Theories, Business Ethics, and Fraud Triangle Analysis

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

1MANAGEMENT
Q. 1.
Ethical theories imply different approaches to morality. These theories have their roots in
field of philosophy, namely ethics. Ethics refers to a set of principles relating to morality. It
has a basic objective of creating a distinction between right and wrong. Ethics strives to
decide the correctness of an action. It deals in the moral principles to arrive at conclusion
regarding the moral validity of an action. Ethics generally involves three approaches of study
namely, meta-ethics, which is concerned with the process by which can conclude an action to
be right or wrong; normative ethics, which is concerned with the actions that might be
adopted to achieve ethical results and applied ethics, which concerns with the mandate that
must be followed in a particular situation.
Business ethics is a branch of applied ethics. Business ethics involves an analysis of
ethical issues and principles that may evolve in a business environment (Szegedi, 2015). It
implies the practices that are visible amongst the individuals or a section of individuals within
an organization that has a favourable or adverse effect in the core values of a business. It is
based on the values, norms, ethical principles that guides a business.
Jho Low adheres to the theory of relativism. Relativism is the theory of ethics, which is
based on the idea that morality is relative to and varies with circumstances and perceptions.
According to this concept, there are no universally accepted right or wrong. Every act has its
own correctness. A particular idea may seem to be true to some while it might regarded as
wrong to some other. In Relativism moral principles varies from situation to situation and
person to person. There will be differences in the moral judgements with respect culture,
conscience, society and other situations. The moral principles of a person subject to the
perception of the person. Therefore, it is evident that the actions of Jho Low was in pursuance
of the theory of relativism.

2MANAGEMENT
Q. 2.
A fraud triangle is a framework on the basis of which the probability of a person
committing a fraud can be analysed. This provides for a reason behind the decision of the
commission of fraud (Mansor 2015). A decision of committing a crime can be influenced by
three stages. These stages are:
 The first stage in a fraud triangle is the pressure acting upon the individual
influencing the commission of the fraud. This pressure may include legal, financial
and other pressures, which seems unbearable and unsolvable to the individual
committing the fraud.
 The second stage in a fraud triangle is the opportunity that is available to a person,
which enables them to engage in the act of fraud. The individual being under a
pressure seeks to avail the opportunity to commit the fraud in order to relieve
himself from the pressure.
 The third stage in a fraud triangle is the ability of the person committing the crime
to provide a rational character to his act of fraud. In this stage, the individual
committing the fraud makes an effort to justify the fraud to boost his moral
principles.
In this case, every act of fraud committed by Jho Low was accompanied by an act to cover
up the same. For instance, his grand operation to siphon funds through Tanore Finance
Corporation was disguised keeping his friend Fat Eric in the front.
Money Laundering involves the suppression of the origins of money, which is obtained by
way of illegal means. This suppression may be effected by transfer of the illegally obtained
money to legitimate businesses or foreign banks.