The article argues that rampant corruption was the reason for the decline of the East India Company. It also cites the recent corporate scandals and draws lessons from them. It shows that a company culture that values correct ethical behavior is important for long-term success.

The EIC was started in September 1599 in London by a group of merchants and adventurers, to trade with the East Indies. It was granted charter by Elizabeth I, the then queen of England, on December 31, 1600. It gave company the monopoly rights to trade for a period of 15 years.

The company adopted the joint-stock concept of the Muscovy Company, which was considered as the first chartered joint-stock company. It also built a sophisticated organizational structure. In India, the EIC had three presidencies, in Bombay, Madras, and Calcutta. Each presidency was independent of the others and was accountable to the East India House in London.

In each settlement there was a hierarchy of merchants. At the bottom were the writers and the factor and at the top were the senior merchants with the junior merchants at the middle. The council was constituted of the senior merchants. It controlled all the business in the local markets of the settlement.

East India Company, Business House, Britains Economic history, corruption, local markets, senior merchants, junior merchants, hierarchy of merchants, joint-stock company, sophisticated organizational structure, East India House, Muscovy Company, merchants and adventurers, monopoly rights, corporate scandals, long-term success.