Management consulting-To what extent is it realistic to expect Essay

Management consulting-To what extent is it realistic to expect consultancies to act ethically - Essay Example Consulting is defined as a practice that involves use of multiple talents and expertise to help solve issues in organizations. In the present business environment business consultants have a very important role that provides them with a good influential position in an organization. This has given rise to many ethical aspects that have emerged after a series of frauds that have come to light recently over the few years (Wang, 2008, p.56). The recent case of Mr. Rajat Gupta involved in a series of corporate frauds and unethical practices illustrates the aspect of unethical practices being used by consultants worldwide. The famous and influential consultant who happened to be the managing director of Mc Kinsey and Co illegally and unethically started a parallel consultancy that had his family members in the top management. Mr. Gupta reportedly indulged in unethical practices like leaking sensitive information and insider trading to get unexercised options worth 1.3 million dollars from GE’s subsidiary arm Genpact (Monadnock Research, 2011). It has also been reported that it is the middle management persons that are most often involved in cases of frauds and unethical practices in business organizations (Monadnock Research-a, 2011). ... In the age of capitalism it has often been stated that consultants and consultancies largely act as certifying agents. The auditors largely acted as an assurance agent for external investors and general public towards the aspect of ethicality and trustworthiness of the business organizations. This aspect in itself has given considerable powers and high status to the consultants who normally act as auditors for business organizations (Sikka, 2009, p.3). With the passage of time since the industrial revelation the world has seen many reforms that also include better surveillance and control by the regulatory authorities on public organizations as well as the financial institutions like banks and stock markets. The growth of business organizations was also followed by a commensurate growth in the consultancy industry. However the aspect of regulations and monitoring was completely absent for this sector that has perhaps led to the growth of unethical practices in the industry (Mahoney, 2011, p.5). The aspect of unethical aspect in the consulting industry has been often traced to the aspect of individualism in the industry. It is a common practice in the consulting industry to make individual consultants accountable for their activities that also includes the aspect of providing accolades for their performances. This has been identified as one of the major reasons for the growing influence of the consultants that in turn has given rise to unethical practise in the industry. This aspect of unethical means has also led to the growth of a popular feeling with regards to the trustworthiness of the consultants with regards to their practices in the industry (Mahoney, 2011, p.3). The trustworthy perception of