Sample Business Studies Paper on Ethics of the Mondragon Cooperative Corporation (MCC) and Satyam Computers

Business ethics play a vital role in organization. In addition, business ethics aims to
protect the employees and stakeholders who are a crucial part of a company. Employee behavior
determines the repute of the company in the market. Organizations that prioritize shareholders
and employees are more productive. Mondragon Cooperative Corporation represents a business
group composed of service, retail, and industrial cooperatives. On the other hand, Satyam
Computer deals with IT services globally. This paper aims at discussing how the Mondragon
Cooperative Corporation (MCC) and Satyam Computer differ in terms of issues concerning the
stakeholders and employees.
An organization’s political ideologies are essential as they determine the company’s
future. Satyam Computers works under its own interests and only considers less government
laws. Additionally, the company is managed by board members who make policies. All
employees are expected to abide by the organization laws. However, Satyam Computers puts
employees under risk since some laws are not as per government interventions. MCC
implements the numerous political ideologies to thrive well in the market. Mondragon
Cooperative Corporation abides to the government laws. As for Mondragon Cooperative
Corporation, the owners of the organization are also the employees. Hence, the individuals create
policies and rules that they deploy to manage the company. The company implements a
democratic approach for the management. The employees take part in the decision making to
ensure that all their needs are considered. In terms of the future goals of the company, all
employees are expected to give their opinions and new ideas. Government rules are essential for
all organizations. The laws protect the employees and the business too. In the context of the
members of staff, the government laws ensure that the workers are safe and are paid what they

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deserve. In addition, the business laws regulate the business practices in the region. For instance,
the government ensures that the business activities do not have a negative impact on the
stakeholders (Griffith et al., 2020). The laws also entail the taxation system, which is important
in the country’s economy. Thus, all organizations should formulate laws based on government
laws. Additionally, companies should outsource auditors to check whether their policies follow
the government’s guidelines. In general, MCC abides by the government laws, while Satyam
Computers does not consider all the government rules.
Mondragon Cooperative Corporation implements libertarianism, since the employees
have a freedom of speech. The company is formed in a structure that the employees are the
owner. Hence, their participation in formulation of policies is vital. In MCC, every employee
knows what is happening in the organization due to transparency. In case of any amendment or
new rule, the company deploys a voting system to ensure that each employee participates. In this
context, the individuals vote as per what they believe is best for them. Thus, freedom of speech is
evident in Mondragon Cooperative Corporation. However, employees are not considered in
Satyam Computers. The board members create policies based on their interests since the
employees are not involved in decision-making. The employees may not agree with the policies,
but they are required to follow them. At times, the workers can only complain about certain
things they are not comfortable with, but they cannot do anything about it. If a shareholder raises
an issue, it is taken foe consideration compared to employees. In every organization, employees
are crucial since they generate profits for the company. Members of staff who are involved in
decision-making have a higher morale (Ramlall, 2004). In addition, workers who are involved
feel empowered and work hard towards achieving the company goals. Employees feel valued
when mangers considers their interests and needs (Dobre, 2013). Managers who involve workers

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have a good relationship with their workers. When members of staff are vocal on their opinions,
the company has more inputs. Employees can have brilliant ideas that can be implemented as
solutions in the organization (Markos and Sridevi, 2018). Additionally, engaging members of
staff in decision making promotes teamwork in the organization. Overall, all organizations
should observe libertarianism.
Satyam Computers has a Human Resource team that manages the policies. However,
Mondragon Cooperative Corporation, employees set the rules. The members of staff then elect a
board of member who maintains the policies. Before any amendment is done, all departments
must first hold meetings to discuss the strengths and weakness of the new rules. Satyam
Computers focuses on new projects and shareholders. The company only focuses on the interests
of the investors rather than members of staff. As for Mondragon Cooperative Corporation, the
board members ensure that the employees’ needs are a priority. For instance, the company does
not focus much on the growth. When members of staff exceed 500, the management may decide
to create a new organization and select new board members. In most companies where the
Human Resource is in charge of the employees, ethical dilemmas arise. Some of the individuals
may only focus on the stability of the business rather than the employees. On the other hand,
some are only in the company for a salary. Also, most management fails because employee
objectives are not in the picture. At times, the human resource team fails because the
organizations fail to conduct frequent audits. Mondragon Cooperative Corporation is more
productive since the policies are managed by one of the owners. Hence, the individual makes
sure that the interests of the employees and the business are well represented in the rules. In this
context, companies should implement a third party to conduct unbiased study. The auditors can
check whether the human resource considers employees when creating policies. Also, the third

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party can check whether employees are paid as per the work done. Transparency acts as a vital
tool to promote an organization’s success. In Mondragon, each department is aware of
everything that happens. Satyam Computers is capitalistic company and it observes minimal
transparency. The board members decide what information to share with the employees. For
instance in 2009, the company knew that it would dissolve soon, but the employees had no idea
(Luo and Zhou, 2020). Satyam Computers closed abruptly risking the future of the workers. The
members of staff did not know until it was too late. The incident happened due to personal
interests of managers. All organizations should implement Utilitarian. Thus, the employee and
business interests will be considered. With Utilitarian all actions are ethical, if the consequences
are good (Crane et al., 2019. In general the two companies differ in terms of management.
Another major ethical dilemma in most organizations is discrimination. All leaders
elected in a company should be qualified and people should not vote them in because of their
background. Mondragon Cooperative Corporation does not support discrimination. The company
ensures that the rule is deployed at all means. For instance, no individual can buy more shares
than the others. Hence, everyone is equal in the organization. Additionally, everyone is subjected
to equal rights. As for Satyam Computers, the public can buy the shares, which makes the
company vulnerable to discrimination. An individual can buy shares and become a board of
member although the person has little knowledge in regards to the company. The individual can
buy more shares than the rest, and lead the company as per their interests. Additionally, the
board of director can also discriminate other employees. Thus, the company can have major
problems. All organizations should ensure that members of staff are protected from
discrimination (Jones, 2017). The companies should have policy that entail on how to deal with
any form of discrimination. For companies that advertise their shares to the market, there should

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a clearly-written policy that protects the organization from personal interests. In general, Satyam
Computers is vulnerable to poor management from new members in the company.
Political ideologies are crucial in all organizations. Mondragon Cooperative Corporation
and Satyam Computer differ in terms of business ethics. Organizations should ensure that
employees’ interests are considered. Managers should observe libertarianism; hence workers
should be involved in decision making.

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Reference List

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Griffith, A., Smit, L. and McCorquodale, R., 2020. Responsible Business Conduct and State
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Jones, K.P., Arena, D.F., Nittrouer, C.L., Alonso, N.M. and Lindsey, A.P., 2017. Subtle
discrimination in the workplace: A vicious cycle. Industrial and Organizational
Psychology, 10(1), pp.51-76.
Luo, Y. and Zhou, L., 2020. Satyam Scandal. In Corporate Fraud Exposed. Emerald Publishing
Markos, S. and Sridevi, M.S., 2010. Employee engagement: The key to improving performance.
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