Software Spying
In another telecommunications case, a company was found to have included spyware in a company-sponsored "software upgrade" to users' cell phones, that enabled the company to collect confidential information from users' phones without their consent (Khaleej Times, 2009). Not only is this practice clearly unethical, but it is also illegal despite a lack of stringency in the detection of such crimes and the prosecution of large-scale corporate offenders such as telecommunications companies. Again, greater transparency and internal control would have allowed this practice to be discovered much sooner, and the risk of discovery almost certainly would have prevented this action from ever occurring. Corporate governance works best when it is so strong it is only rarely and usually accidentally tested; when purposeful actions like this take place, a fundamental problem exists.
Embezzlement
Corporate governance does not just keep corporations as a whole on the right ethical and legal path, but also helps to ensure employees and managers are keeping company regulations and best interests in mind in all of their actions. With strict corporate governance policies in place, instances like the embezzlement of 27 million Dirham by an operations manager at a UAE telecommunications company wouldn't have happened (Kumar, 2008). Again, early detection and the threat of detection serving as prevention would have significantly mitigated if not entirely limited the risk exposure of the company in this case.
Corporate Governance in Governments
Just as corporate governance keeps individuals and corporations in check, the same principles and indeed some of the exact same mechanisms can be applied to governments in their interactions with the populous and with corporations. The UAE and other nations in the region have banned the use of voice-over-Internet-protocol (VOIP) programs and services, such as Skype, largely at the behest of the telecommunications companies that control a very restricted and expensive market and don't want to face the competition (Creffield, 2007). Rather than actually preventing the use of VOIP services, however, this ban merely led to people illegally using the cheaper (or free) competitors,...
More effective ethical principles and checks would not have allowed this unfair competitive practice, which would have actually made consumers and businesses better off.
Terminating by Percentage
Sometimes companies take what seem to be reasonable actions, and indeed what might be legal actions, without acting in a truly responsible and benefit-minded manner. It has become more common to hire outside consultancy firms to audit companies for efficiency in human resources, and often a certain percentage of the workforce is simply terminated based on the recommended reductions of these external consultants. This can create practical as well as ethical concerns for the company.
References
ADCCG. (2012). Accessed 7 May 2012. http://www.adccg.ae/
ADX. (2012). Mission & Vision. Accessed 7 May 2012. http://www.adx.ae/English/AboutADX/Pages/MissionVision.aspx
Creffield, L. (2007). Why you can't block Skype. Accessed 7 May 2012. http://www.ameinfo.com/93716.html
Etisalat. (2011). 2010 Annual Report.
Etisalat. (2012). 2011 Annual Report.
Etisalat. (2012a). Accessed 7 May 2012. http://www.etisalat.ae/eportal/en/home/index.html
Halbert, Terry and Ingulli, Elaine. (2009). Law & Ethics in the Business Environment.
Cincinnati: West Legal Studies.
Hawkamah. (2012). Accessed 7 May 2012. http://www.hawkamah.org/corporate_governance/index.html
Khaleej Times. (2009) BlackBerry alleges UAE company placed 'spyware' on handsets. Accessed 7 May 2012. http://www.telegraph.co.uk/technology/blackberry/5885931/BlackBerry-alleges-UAE-company-placed-spyware-on-handsets.html
Kumar, H. (2008). Etisalat embezzlement accused is a national: Female manager was under investigation and will be brought before court for Dh27 million fraud. Accessed 7 May 2012. http://gulfnews.com/news/gulf/uae/crime/etisalat-embezzlement-accused-is-a-national-1.130467
Sahota, D. (2012). India and the Spectrum Scandal. Accessed 7 May 2012. http://www.telecoms.com/39830/india-and-the-spectrum-scandal/
