Definition: Set of questionable, unethical, and/or illegal actions that a person or persons within a corporation engage in.

This often becomes a wide public incident. Typic ally there are questions about the corporation's actions, which are either alleg edly illegal or actually proven to be illegal. Corporate scandals are therefore brought about from allegations about ethical practices or behaviors, by legal ac tion or decisions, or a combination of the two. They may also be due to persons within a corporation acting on his or her own behalf with or without regard for the company. Accounting scandals, or corporate accounting scandals, are political and busines s scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. Such misdeeds typically involve complex methods for m isusing or misdirecting funds, overstating revenues, understating expenses, over stating the value of corporate assets or underreporting the existence of liabili ties, sometimes with the cooperation of officials in other corporations or affil iates. The business should always look at under mentioned things while conducting their affairs Ethics: It is a system of moral principles and attitude that guides our action to be mor ally correct, fair and just. ethics are not simply professing about virtue and g ood behavior; ethics are the expression and exhibition of standard of moral cond uct governing the members of a profession , business or society so that the inte rest of people involved in the these organization or association are protected. This subject relates to the morality of our actions or specific moral choices th at we make with regard to others in society or in business. Ethics are at the co re of our behavior and response to an event or situation, which makes us feel go od or bad, satisfied or dissatisfied, happy or unhappy. And, in doing so, one ha s to be concerned not only with the action but also with the outcome of the acti on. Therefore, ethics and ethical issues are concerned with the morality and fai rness of our decision and its consequences. Ethics are a principal approach to life (in the case of individuals) and the bus iness (in the case of a group of the people who run an enterprise). In this rega rd, a distinction should be made between principles and rules. Stephen covey, the fa mous expert on effective management, has likened principles to the lighthouse that g uides a ship to move towards its destination. An example from history:-The story goes that, when the great greek philosopher S ocrates was in jail, awaiting execution on a false charge of capital offense, hi s friends tried to persuade him to escape rather than face unfair execution. But he refused because he was convinced that escaping would me morally wrong. Thoug h he was awaiting death for a crime that he did not commit, he chose not to esca pe from the jail because he was convinced that intentionally doing something wro ng would harm him more than suffering an unjust death