Ethics, Corporate Governance, and Law Report: Operation Car Wash

This report provides an overview of the Operation Car Wash scandal in Brazil, detailing its origins, the individuals and institutions involved, and the far-reaching consequences for politicians, businesses, and the Brazilian people. It highlights the corruption, money laundering, and political crisis that resulted, including the impact on the economy and the erosion of public trust. The report also examines the UK Corporate Governance Code, outlining its principles and guidelines for companies operating in the UK. It discusses the code's role in promoting accountability, transparency, and ethical business practices, and the requirement for companies to adhere to these standards. The report concludes by emphasizing the importance of ethical conduct, legal compliance, and robust governance frameworks in fostering a stable and trustworthy business environment.

Ethics, Corporate
Governance, and Law
1

Table of Contents
TOPIC: Operation car wash.............................................................................................................3
The scandal and consequence for politician, business lenders and the people of Brazil.............3
UK Corporate governance code...................................................................................................4
REFERENCES................................................................................................................................5
2

TOPIC: Operation car wash
The scandal and consequence for politician, business lenders and the people of Brazil
Operation car wash is basically related to an ongoing criminal investigation which was
conducts by the Federal police of Brazil. It has started in March 2014 which was initially headed
by investigative judge. In fact, it was come out in more than thousands warrants of different
types. According to the report of operation car wash task force, the investigative implicate
management of state-owned oil industry Petrobras and federal state government. In reality a
money laundering investigation tend to cover specific allegations of corruption at Petrobras
(Operation car wash, 2015).
The primary aim of this policy investigation tends to ascertain the extent of a money
laundering plan which was noticed by the regional superintendent of Federal policy. It has been
seen that the list contain four former presidents, eight ministers and other seventy members of
the national congress along with their three governors such as chief of staff Lula da silva, Dilma
Rousseff, Michel Temer, Eduardo Cunha and Sergio Cabral were involve in this particular
investigation.
It has been analysed that the prosecutors-general has charged the president with a total
corruption of $788million bribes. However, executive from both petrobras and odebrecht
consists of a latter’s previous chief executive were sentenced to prison time. In the April, 2017, a
US federal court has ordered odebrecht to pay a total amount of $3.5 billion as fine to their
concern authorities in Brazil, Switzerland and other parts of the US (Brazil corruption scandals,
2015). In fact, the former Brazilian president Lula Da silva has been found convicted and sent to
12 years prison by the judge Moro lacking a shred of proof. The primary role of Moro is to issues
search warrant against the Lula on charge of passive corruption and money laundering crime.
After examine all the first five evidences related to the crime was applicable against the president
lula, therefore, Moro made decision to give nine and half year in prison for their involved in the
offense.
According to the office of fair trading, it was determine that a total of 112 companies were
involved in the rigging and inflating contract prices robbing the public income. The politics of
Brazil took place in a structure of a federal presidential legislature democratic republic in which
the president is tend to work. There were so many consequences arises because of this particular
3

scam that results in prison terms for so many politician and executives in Brazil construction,
meat and petrochemical sectors (Consequence of the scandal, 2015). All those workers those are
not having direct involvement in this particular disgrace have paid a steep charge. The finance
department of Brazil analysed that the GDP is growing with an estimation of 1.1 %, but would
also impact the private sectors as well as increase in investment level. The unemployment rate
was also falling and reaches to a benchmarked interest rate low of 7% during the year. The
economy condition of the country tends to impact the country’s international competitiveness.
The political crisis, investment level and customer confident tend to suffered lot more and that
lead to a 3.9 % drop in total GDP in 2015 and another 3.6 % downfall in the very next year. In
the meanwhile, the scandal was supposed to have erased more than $250 billion from their
Petrobras market value.
UK Corporate governance code
The UK Corporate Governance Code is also known as a combined code that is a part of a
UK company law with a set of principles and guidelines for every company which is working in
the UK. Each company has to follow its guidelines which are established by UK corporate
governance to run their business. In fact, the code is published and maintained by the financial
report council (FRC) to enforce that the companies should keep in mind all rules and regulations
while doing business so that transparency can be maintained in the society. The purpose of the
corporate governance code is to set out standards of good practices with accountability,
transparency, profitability, and relations with shareholders (Elshandidy and Neri, 2015).
However, all the companies which are listed in the UK are required under the listing rules to
report that how they have followed the guidelines or code which are set by the UK government
in their annual report and audits. The companies need to adhere to the rules and regulations that
are derived by the financial report council (FRC) whenever they are going to introduce or launch
any product so that the equality can be maintained in the country. They need to keep in mind that
the product which they are going to launch should be of the best quality, cannot harm society and
there should not be any discrimination in terms of religion, caste, etc. The UK corporate
governance codes and ethics are displayed by the companies in their organization premise so that
every employee and staff can adhere to this code while working.
4

REFERENCES
Books and Journals:
Brazil corruption scandals, 2015.[Online]. Available through:
<https://www.bbc.com/news/world-latin-america-35810578>.
Consequence of the scandal, 2015. [Online]. Available through:
<https://www.washingtonpost.com/world/the_americas/a-corruption-scandal-wrecked-
brazils-economy-now-workers-face-the-consequences/2017/06/16/a2be0faa-505b-11e7-
b74e-0d2785d3083d_story.html>.
Elshandidy, T. and Neri, L., 2015. Corporate governance, risk disclosure practices, and market
liquidity: Comparative evidence from the UK and I taly. Corporate Governance: An
International Review. 23(4). pp.331-356.
Operation car wash, 2015.[Online]. Available through:
<https://edition.cnn.com/videos/tv/2018/06/20/exp-gps-0617-what-in-the-world-brazil-
corruption.cnn>.
5