Unethical practices that harm employers include low wages and an unsafe work environment. Some employers have become accustomed to having their own change rooms, while other employees use unhygienic change rooms. Essentially, all practices that make employees uncomfortable in the workplace are unethical because they do not meet federal labour standards. Despite the truth of the offer and the work and investment required to attract customers, the harsh reality is that almost all companies will have “criminals” who are not ashamed to indulge in dishonesty. They are completely unaware of the impact of unethical behavior on their company`s operations. Unethical behavior can be a number of things – using company property for personal gain, dishonesty in financial transactions, accepting and giving bribes, and perhaps worst of all – insider trading. Some companies don`t shy away from offering big “incentives” to land lucrative contracts, government deals, and other similar deals that maximize their profits, no matter how much damage they may inflict on others. These companies, which strengthen themselves by building “associations”, care less and less about their employees and customers. Their sole purpose is to make a profit by any means possible. It is unlikely that the courts will ever agree on the importance of ethical rules in civil matters. Part of the problem with a uniform rule is that codes of ethics have different weights from industry to industry and even rule to rule on what should be followed and what should be followed. To make matters worse, most organizations do not require membership or participation from all members of that particular profession.
The courts have not yet determined whether the ethical guidelines should apply to professionals who are not part of the organization that created the guidelines. Employees who are not supervised sometimes slow down their performance and take credit for completing tasks that were not completed. Properly train all employees. Untrained employees often cut corners and apologize if they don`t get the job done to the standards required by the company. There are unethical business practices that are legal but morally questionable. Nothing prevents companies from participating in these activities, especially if they feel that their products and services are so desirable that customers will continue to buy them anyway. One of the worst effects of unethical behavior on the business is that a company is unable to establish or maintain long-term relationships with customers. In addition, it becomes subject to lengthy and costly litigation. The fact is that even such a case can leave the company vulnerable to further accusations, many of which could be false, from individuals and competitors trying to damage the company`s reputation. Although customers have access to a lot of information via the Internet and other market information, they rely heavily on the company and its representatives for accurate information and structured advice on a number of aspects.
As the business environment becomes more competitive, companies must therefore make the decision to act ethically or they must deal with the extremely harmful effects of unethical behavior on their company and agents. It would be extremely immature and reckless for companies to believe that customers are naïve and ultimately unaware of the company`s misconduct. In today`s world, companies that adhere to legal ethical behaviors are in drastic decline. In most companies, at least one business practice is conducted unethically. Unethical practices in societies affect governments by losing taxes (George and Jones, 2010). As a result, the global economy is in crisis, with companies escaping paying taxes. A lack of ethics has a negative impact on employee performance. In some cases, employees are so busy moving forward and making money that they ignore procedures and protocols. This can lead to additional paperwork and careless errors that result in the task being redone.
In addition, employees who feel they act ethically and follow the rules, do not make them progress in the company, sometimes feel a lack of motivation, which often leads to a decrease in performance. By making investment structures so complex that even experts have trouble deciphering them, companies can defraud investors while complying with the law. Examples of unethical business practices such as these include credit default swaps, mortgage-backed securities, hedge funds and special investment vehicles. Typically, the company offering the investment underestimates the risk, but the risk becomes apparent later when the portfolio or funds in the pension plan decline. With globalization, companies are doing their best to maximize their profits and outweigh the profits of their competitors at the expense of the global economy. Transparency and accountability are outdated because companies are aiming for one thing; to make maximum profits at all costs. There have been cases where companies involved in unethical practices clear their names in court through corruption. What is an unethical business practice? Find out the answer in the following article! If unethical behavior occurs in a professional context, there is a good chance that it will be published. This, in turn, can cause your business to lose credibility, forcing customers to stop selling with you, disparage your business, and no longer respect you. To regain credibility, a company needs to create a well-planned rebranding and marketing campaign and hire a PR team to improve its reputation.