http://www.huffingtonpost.

com/huff-wires/20130212/eu-italy-
finmeccanica/

The arrests for alleged corruption gave fuel to an already incendiary

election campaign, with some candidates blaming Mario Monti's
technical government for not having done enough to shore up
management at the company, which is 30 percent state-owned and
Italy's second-largest industrial concern.

Corruption is not only just a company problem but also one

for governments. As we have seen some companies not
taking corruption seriously enough, we have also seen the
same for governments. According to our Government
Defence Anti-Corruption Index, both the Indian and
the Italiangovernments do not go far enough to demand
strong anti-corruption systems from their companies. If they
want to demonstrate that they are committed to clean
procurement deals, they should require companies to
demonstrate strong anti-corruption systems and insist upon
a supply chain that itself upholds ethical standards.
http://news.trust.org/item/20130213165600-0pi4c

Finmeccanica, which is 30-percent government owned and was

once considered a jewel among Italian companies, said in a
statement that it will continue operating as usual and
expressed support for the executives. The statement called the
measures against Orsi and Spagnolini "precautionary."

http://www.foxnews.com/world/2013/02/12/italian-police-arrest-
finmeccanica-ceo-in-corruption-probe.html

impact on stakeholders:
Finmeccanica shares dropped 8.4 percent to 4.36 in Milan
trading despite an order by the market watchdog banning
short-selling of the company's stock. Short-selling is when
traders sell stock they do not actually own, hoping to buy it
back at a lower price.
https://www.ft.com/content/b4a1b7a44fb311e4908e00144feab7de

http://www.economist.com/node/587107
The allegations of bribery that Mr. Berlusconi was involved such as
money laundering, tax evasion and bribery of politicians has caused
shareholders and investors to lose their confidence and trust in their
business (Economist, 2001). Based on the case, Finmeccanicas
profit started to increase in 2013 only after making losses for two
years. The companys shares dropped to 8.4% in the Milan Trading
(Politi,2014).

Finmeccanica returned to profit in 2013 after two years of losses. Its

shares were down 3.6 per cent to 6.80 on Thursday. There was no
immediate reaction to the verdict in India, where the corruption
charges that were dismissed by the court on Thursday had been a
source of embarrassment for some government officials.

Finmeccanica has distanced itself from the allegations, saying the case is against the individuals rather
than the company, but India's defence minister said the company would be banned from future
government tenders.

http://economictimes.indiatimes.com/news/defence/finmeccanica-
to-reconsider-business-in-india-if-
blacklisted/articleshow/52515176.cms
According to (The Economic Times, 2016), claimed that the case is
not against the company but rather the individuals that are
involved. However, due to this alleged payment of bribes for the
contract, Indias defense minister revealed that in the future,
Finmeccanica would be banned from any government offers.

Effect on employees
Finmeccanica is Italys second-largest industrial concern, with nearly 70,000
employees worldwide and revenues in 2011 of 17.5 billion. The company is
burdened by high debt, which reached 4.8 billion at the end of the third quarter
of 2012 more than the companys market capitalization.

http://globalnews.ca/news/392484/itays-finmeccanica-names-
interim-ceo-as-corruption-scandal-engulfs-management-tanks-
shares/

In most countries, bribery is the only way to do business. However,

it is illegal to receive or offer bribes in most of these countries. Yet,
these corrupt practices are done as it is part of the culture of
doing businesses. In most companies, bribery is the most concerned
issue. As receiving and offering bribery carries a great risk in
damaging the companys reputation as well as the country which
will eventually leads to the corruption of society.
In some countries, bribery is part of a governments employee
income (Cheung,1996).
However, in the case above, Mr Berlusconi, the former Italian Prime
Minister said that the only way to do business is to bribe.

http://www.lexology.com/library/detail.aspx?g=5851e867-7d67-
4edc-bc26-bfa86bf1700a ---- brief explanation

http://www.reuters.com/article/us-italy-berlusconi-
idUSKCN0PI2A520150708
Berlusconi found guilty of bribing Italian senator
https://www.theguardian.com/world/2015/jul/08/silvio-berlusconi-
sentenced-to-3-years-for-bribing-italian-senator
Silvio Berlusconi sentenced to 3 years for bribing Italian senator

https://books.google.com.my/books?
id=x6uzCwAAQBAJ&pg=PT148&lpg=PT148&dq=Silvio+Berlusconi+
bribery+case+effects+on+employees&source=bl&ots=NADHPGsXo
8&sig=lQg1gNsQPSWJwdIWwm7kIeDu_Ps&hl=en&sa=X&redir_esc=
y#v=onepage&q=Silvio%20Berlusconi%20bribery%20case
%20effects%20on%20employees&f=false

Corruption and Government: Causes, Consequences, and Reform

By Susan Rose-Ackerman, Bonnie J. Palifka

http://ualr.edu/socialchange/2013/10/09/is-corruption-ever-ethically-
permissible/

According to Nichols (2009), corruptions cause damages on society

as a whole. The social effects of corruption includes the reduction of
the legitimacy of governments such as the democratic government
and this may lead to an immoral upbringing of undemocratic
leaders.

In applying Utilitarianism, Mr Berlusconi did not take into

consideration of everyone that will be affected by this decision.
According to Nichols (2009), corruptions cause damages on society
as a whole. The social effects of corruption includes the reduction of
the legitimacy of governments such as the democratic government
and this may lead to an immoral upbringing of undemocratic
leaders.

Italy was listed as one of the most corrupt countries in Europe in

Transparency International Corruption Perception Index for 2014, published
last December.

https://www.thelocal.it/20150416/corruption-impacts-italy-
dramatically