Is there any ethics check done for corporate governance?

My ex-colleague was laid off from this company without any prior notice last month and he hasn't been paid for the last 3 months. Imagine the scale, out of some 2900+ employees, 1500 were impacted at midnight. There have been many attempts to give the organization a chance to pay for the dues but ultimately they are in this situation - I'm close to him so I have heard things.

On the personal front, he was supposed to get his sister married this year before his dadi's departure and he had to take a loan to sustain his family's monthly expenses. I could only help him within my means and it's sad how this economy is impacting the start-ups. Even then, the Indian Labour Laws are pretty much useless in these situations.

What's more shocking is that this organization is being run by uhmm, uhmm one of the notorious scammers indirectly as far as I have heard. Again, most of the higher management folks there have questionable credentials and have track records of committing frauds so this was inevitable, he said. Top management only communicated on 2-3 occasions and then people started expecting mails for the next date of payment rather than salary credit.

What's your take on this?

Source: https://thesouthfirst.com/karnataka/over-1500-people-laid-off-salary-delayed-for-months-crisis-in-satyam-ramalinga-raju-linked-firm/