It isnt limited to only money. For example, a clothing company that uses child labor in its factories will likely lose customers who are opposed to this practice. "Unethical Business Practices Essay." 1. By clicking Accept All, you consent to the use of ALL the cookies. They have to obey the authority and perform all their commands. Hill, A. Therefore, companies that are practicing deceptive and unethical sales practices should know that their practices would tore the company down in a matter of seconds. We also use third-party cookies that help us analyze and understand how you use this website. Such a poor work environment would lead to a drop in productivity, lowered morale and employee attrition, which would lead to the downfall of the company. This cookie is set by GDPR Cookie Consent plugin. There is a very high possibility of the G4S executives in such nations to be drawn into unethical practices that may further portray the companys incompetency. The cookie is used to store the user consent for the cookies in the category "Analytics". Recently, due to an increase in the demand, the amount of time that customers wait in the queue has, Claire is severely injured in a car accident.The local hospital cannot treat Claire's injuries.In order to survive, Claire must be flown via Helicopter to a hospital in a bordering state.Prior to, Bono is a musician.He sells his neighbor a gently used lawn mower at a deeply discounted price.The neighbor is dissatisfied with the performance of the lawn mower.Can the neighbor sue Bono under the. Some junior employees are obliged to withhold information regarding the unethical practices of their bosses for the fear of intimidation, which that is also unethical. The data is also used to optimize and maximize the results of marketing campaigns. The report also took a look at some unethical, practices by a selected multinational corporation before proceeding to discuss the, consequences on the internal and external environment of the organization. Loss of company credibility. Eventually, the unethical behavior of a business will catch up with them and they will face serious consequences. Further, the courts can even order the company to be closed down. Web. Copyright 2023 performanceinspired.tv | Powered by Digimetriq, The definition of unethical business practices, How unethical business practices can damage a companys reputation, The financial cost of unethical business practices, The legal implications of unethical business practices, The impact of unethical business practices on employee morale, How unethical business practices can lead to a loss of customers, The social implications of unethical business practices, How unethical business practices can lead to environmental damage, The long-term effects of unethical business practices, Ways to avoid unethical business practices. The manager is meant to oversee how this money is spent. They adhere to the norms set by the government but try to skip the expenses associated with a suitable setup. You can lose your job and reputation, organizations can lose their credibility, general morale and productivity can decline, or the behaviour can result in significant fines and/or financial loss. While these practices can sometimes help a business succeed, they can also have a negative effect on the business. Essentially, there are numerous fraud cases in the management of the company, and those practices are driving G4S into the grave. If a business is caught bribing officials or engaging in other illegal activities, it will be subject to fines and other penalties. The executives of some companies have taken advantage of humble investors to mishandle their propriety. The database is updated daily, so anyone can easily find a relevant essay example. Mistreating employees is a familiar scene in many companies. Businesses also, occasionally, get into creating unfair advantages over their competitors. Retrieved March 30, 2016, from Unethical behavior has high social and financial costsfor companies and countries alike. Deception, collusions, swindling sounds like the plot of a best-selling novel. So, in this article, Im providing a list of 10 unethical business practices you need to stay away from. For example, following the Enron scandal in 2001 (in which the energy company was found to have engaged in widespread accounting fraud), many investors lost faith in corporate America and there was a significant decrease in confidence in the stock market. Implicit or explicit promises of preferential treatment in return for sexual favors are also considered acts of harassment. What are the consequences of unethical business practices? What more? A documented code of conduct specifies the type of conduct and behavior expected in the workplace. What are the effects of unethical behavior by customers to the company and other customers? With regard to the mentioned allegations, there is a high possibility that the competitor company evades many other compliance payments to the government though bribery. Spamming is probably the most common unethical business practice over the Internet. Legal issues and policies. When someone is immoral, they make decisions that purposely violate a moral agreement. A reward can be as simple as praise in the face of good behavior particularly when it would be easy for an employee to act unethically. They try to create a false impression of their competitors in the mind of the consumers. Unethical practices are those that are morally wrong. Regardless of how effective their drugs would be, informed customers will tend to shy away from purchasing their drugs. As if that is not enough, some companies go ahead to produce low quality or unsafe products. Consequences of unethical business practices is horrible for any organization the sooner or later. It does not store any personal data. The highly sensitive information was very essential for the prosecutors to file charges against the GlaxoSmithKline Company, and it was very controversial to find out who disclosed those unethical practices. 3 Types of unethical behavior in a business. These accusations involve concerns about environmental impacts, poor working conditions, and severe abuse of human rights. This can lead to additional paperwork and careless errors that result in the task having to be completed again. -Fraud: deception or misrepresentation with the intent to gain an unfair advantage Unethical behaviour has serious consequences for both individuals and organizations. Genuinely, drugs are meant to enhance human life, and the named unethical practices concerning drugs are so inhumane. In this alternative history. -Lying: deliberately misrepresenting the truth in order to deceive others Save my name, email, and website in this browser for the next time I comment. Many businesses operate in an unethical manner, whether they realize it or not. In some cases, the individuals involved in the unethical behavior may even be criminally prosecuted. Legal Consequences of Unethical Behavior. These can include: Failing to refund customer returns; Embezzling company funds; and/or Stealing warehouse equipment. However, these terms are quite common in the commercial circles where unethical business practices can be seen by the dozen. Coca-Cola has been blamed for its unethical behavior in multiple areas. Consequences of Unethical Business Practices Strain, M. (2016). We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. effect. You are free to use it for research and reference purposes in order to write your own paper; however, you For example, if a company engages in illegal price-fixing or other anticompetitive behavior, it may be subject to investigation and penalties by the Federal Trade Commission or other antitrust enforcement agencies. What is unethical business practice? Such tactics are unethical and can tarnish the image of the organizations using them. if a BUSINESS violates government regulations, the owner can be fined or go to jail if an EMPLOYEE violates a company or professional code, the employee might be fired or lose his/her license ethical questions Is it against the law?Does it violate company or professional policies? (2010). The executives of such companies protect their brand names, and they fight to maintain the companys reputation through corruption. You can lose your job and reputation, organizations can lose their credibility, general morale and productivity can decline, or the behaviour can result in significant fines and/or financial loss. The company has a motto of delivering excellent services and maintaining the highest level of ethical standards. It is difficult to have a successful business without well-respected leaders. Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, and bribery. The burgeoning, proliferation of unethical practices impacts the global financial crisis, deepening the fallout in, human terms and slowing the ability to rebuild (Gill, 2012, P.371 -391), The code of conduct put in place by various governments has so far been very, ineffective in combating or reducing unethical practices. Further, the company distorted the data of a diabetic drug that recorded very high sales, and it marketed other drugs improperly. Bribery and corruption are common in many business dealings. There are a number of ways to avoid unethical business practices: -Educate employees: Employees should be aware of the companys ethical standards and expected to comply with them. -Enforce consequences: It is important that there are consequences for those who engage in unethical behavior. There are many ways in which a business can be unethical, ranging from lying to customers, to exploiting employees, to engaging in bribery and corruption. What are seven consequences of unethical business practices? While GlaxoSmithKline may not feel the pain of paying such a huge fine, the company executives should know that its publicity reputation was destroyed. There are many unethical companies out there, but this list is going to examine the ethical issues on the top 20 worst ones. "Unethical Business Practices Essay." False advertising is the most prevalent unethical practice. Creation of false documents to show increased profits. August 1, 2022. https://ivypanda.com/essays/unethical-business-practices-and-their-effects-term-paper/. When the top management and executives behave responsibly, employees walk in the same direction. 1 What Are Levendarys Business-level and Corporate-level Strategies?? Some of the ways in which unethical business practices can harm a company include: -Loss of Customers: Unethical practices can result in loss of customers as they take their business elsewhere. He loves writing on travel and marketing. Such use of information in a way it wasnt intended falls under unethical behaviors. Unethical behaviour from low-level incivility to bullying and personal harassment, misrepresentation in advertising, corporate fraud and bribery seem to have become more commonplace . 23 Feb, 2021, 10.38 AM IST All News Videos The customers, business partners, and employers may break ties. Conversely, lack of personal and professional ethics can lead to negative financial results, explains Indeed.com.
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