Ethical And Unethical Business Practices Pdf

File Name: ethical and unethical business practices .zip
Size: 2551Kb
Published: 26.04.2021

In business, your company's reputation is a big contributor toward your company's success. If your customers perceive you to be an ethically run organization, they are more likely to continue to do business with you and even recommend you to others.

Everything you need to know about business ethics. Business ethics implies general ethical ideas to business behaviour. Ethical behaviour not only improves profitability but also fosters business relations and employees productivity. Business ethics is concerned with the behaviour of businessman in doing a business. Unethical practices create problems to businessman and business units.

Ethical and Unethical Business Practices.docx

Everything you need to know about business ethics. Business ethics implies general ethical ideas to business behaviour. Ethical behaviour not only improves profitability but also fosters business relations and employees productivity. Business ethics is concerned with the behaviour of businessman in doing a business. Unethical practices create problems to businessman and business units. What is Business Ethics? History of Business Ethics 3. Meaning 4. Concept and Definitions 5. Characteristics 6.

Elements 7. Principles 9. Need Importance Theories Business Ethics and Profits of Business Ethics Determinants Advantages of Managing Ethics in Work Place. Regulations Guidelines Ethical Dilemma Relationship between Business and Ethics Rationale of Business Ethics Ethics and the Indian Corporate Culture The erstwhile-regulated economies necessitated their governments to regulate and control business organisations and economic institutions through law and government mechanisms to enable them to play their role in contributing to the growth and wellbeing of their stakeholders in a balanced way such that the interest of the almost all the people was protected.

Various business management concepts, principles, theories, practices, goals and strategies have been under evaluation, revalidation and constant change consequent upon massive liberalisation, privatisation and globalisation of business initiated towards the end of the 20th Century and geared up in the beginning of the present century.

Many social scientists felt that the deregulation of business would encourage the business to reverse back to its orthodox objective of profit maximization by whatever means including practising unethical conduct. But sooner or the later, a number of incidents around the world proved that businesses should carry out their operations ethically for the sake of basic survival. The following example is a point in fact. The Company President Mr. The company decided to go ahead without the safety feature.

After six months of release, one of the cars was involved in an accident killing all the passengers. Competitors influenced newspapers to publish this accident and the newspapers in the U. This case indicates that business should consider ethical principles while making decisions in order to achieve its basic objective of survival.

Thus, competition forces businesses to conduct their business ethically. Increasing literacy, widespread use of information technology and declining sellers markets after globalisation reduce the scope for debating on the need for conducting business ethically. The issue, now, is to treat ethics as part of human behaviour and part of making individual and collective business decisions.

Many business people are religious individuals, but their business suit makes them blind towards human suffering. Increasingly unethical conduct was found by corporations during the s. To counter this, corporations developed social responsibility programmes which included charitable donations and funding local community projects.

Eventually philosophers became involved and brought ethical theory to bear on the relevant ethical issues and hence business ethics became a more institutionalized part of business. This new aspect of business ethics differentiated it from social issues courses in three ways:. It provides an ethical framework for evaluating business and the corporate world. It allows critical analysis of business and development of new and different methods. It fused personal and social responsibility together and gave it a theoretical foundation.

Ethics is a branch of philosophy concerned with human character and conduct. Ethical standards are referred to as the principles or ideals of human conduct. What is ethical and unethical in general society may not be the same in business as the latter operates in different environments. It studies the impact of acts on the good of the individual, the firm, the business community and the society as a whole. Business ethics are the norms and moral values of human behaviour desired by the contemporary society exclusively and inclusively dealing with commercial transactions.

These definitions on business ethics are not comprehensive but they provide an idea of what business ethics is. In fact, defining the term business ethics comprehensively is very difficult. Business ethics means the behaviour of a businessman while conducting a business, by observing morality in his business activities. The behaviour of a businessman has more impact within the business organisation than outside.

So, he should obey the laws even though he may personally believe them to be unjust or immoral. If the businessman feels that the provisions of laws are unjust, he can take steps to change the provisions instead of disobeying them. Such observation of morality is not required out of fear for punishment. He should observe ethics inspired by his own interest in his business and society as a whole. The reason is that there is no distinction between a businessmen and his business. According to Drucker, every individual and organisation in society should abide by certain moral codes and that there is no separate ethics of business.

The nature and concept of Ethics, we can say that Business Ethics is nothing but the application of Ethics in business. Business Ethics proves that businesses can be, and have been, ethical and still make profits.

Business Ethics was thought of as being a contradiction of terms. Thankfully, not any more. Today, more and more interest is being given to the application of ethical practices in business dealings and the ethical implications of business.

Human beings have been endowed with the freedom of choice and the means of free will. He can distinguish between good and evil, right and wrong, just and proper. He can distinguish between the end he wishes to pursue and the means to gain that end.

Now, what is true for human beings is also true for business, because business are carried on by human beings only, and business organisations are nothing but formal structures for human beings to carry on their businesses. Moreover, businesses are thought of as being living, growing entities. Thus, businesses also have choices-a choice to maximise their profits and a choice to do good for the society in which they live and operate.

However, at most times, profit maximisation and discharging of social responsibilities at the maximum limit, cannot be carried on simultaneously. One is bound to affect the other. For example, Concern for Task Productivity and Concern for Human Beings workers are bound to pull each other in opposite directions. It is difficult, if not impossible, to maximise both together. A conflict arises in trying to achieve both simultaneously. Hence, many managerial choices represent Managerial Dilemmas, between the profit consideration commercial concern and the social consideration welfare concern of the organisation.

Many managerial decisions have ethical implications and these decisions give rise to Managerial Dilemmas. For example, ruining occupations of age-old inhabitants in a particular locality and their ethical way of life, by using advanced technology, is an ethical dilemma. Technological advancements have to come, have to be used; however, what to do with the people whose life and earnings are affected by the utilisation of advanced technology, is a question which is difficult to answer.

Recently an award-winning regional language file of India, depicted the plight of an aged boatman whose occupation was to transport people and goods across the local river, as there was no bridge over the river.

However, his occupation gets threatened when a bridge is built over the river. This does not mean that technology advancement must not be utilised or that modern methods should not be welcomed. Certainly, they should. Science and technology should, by all means, be used to uplift and make better the lives of human beings all over the world, and specially in such backward regions as this boatman lived.

However, consideration should also be given to see whether alternative means of arrangements can be made so that people are not unduly disturbed or that their trauma and upheaval is kept at a minimum. In case of the boatman, an ethical and effective solution lies in providing him with alternative employment on the bridge itself-as a security man, toll tax collector, etc. Similarly, when Mergers take place between companies, or Acquisition of one company by a bigger company, where Job positions are duplicated, instead of employees losing their jobs for no fault of their, ethical solutions lies in Job Reassignment or Retraining for alternative Job Assignments.

A business or company is considered to be ethical only if it tries to reach a trade-off between perusing its economic objectives and its social obligations, i. What are the obligations of a business, is open to interpretations. The list of obligations that a company must perform is long and complex and hence, are costly to the company; yet they must be discharged, if a company wants to survive and grow in the long run and is not satisfied in making profits only in the short ran.

While discharging its obligations to the society, the company not only fulfils its own duties, but also paves the way for a stronger and more ethical foundation. Ethics, in short, may refer to the following:. Ethics are principles, values and beliefs that define what is right and wrong behaviour. Ethics are broader than what is stated by law, customs and public opinion. For example, accepting gifts from father-in-law might be socially acceptable but not ethical; owners pocketing profits without sharing the gains with workers might be legally permissible but not ethical.

Ethical behaviour may differ from society to society. For example, birth control is mandatory in Communist societies but not in Catholic Christian societies. Ethical standards are ideals of human conduct.

How Common Is Unethical Behavior in U.S. Organizations?

While most people agree that the inculcation of ethical awareness is desirable, the means of stimulating this awareness vary among companies, industries and cultures. The fundamental question surrounding the difference between social responsibility and ethics is addressed. Guidelines for establishing ethical priorities from both the individual, group and organisational perspectives are provided. McDonald, G. Report bugs here.


PDF | This article examines how unethical management styles manifest themselves the concept of business ethics and moral leadership is no longer taken.


Effects of a Lack of Ethics on a Business Environment

The Yale Center for Emotional Intelligence in collaboration with the Faas Foundation conducted a national survey of more than 14, employees across industries to better understand how Americans experience work. The sample represented the U. While it often goes undiscovered, this behavior puts too many businesses — and, unknowingly, their customers — at risk.

In light of Ponzi schemes and company scandals, the business industry has developed a reputation for its lack of ethics. In an industry where getting ahead and making money appear to take precedence over ethical decision making, it can seem difficult to understand the importance of ethical behavior in business. A lack of ethics leads to a wealth of problems for a business. In the United States, federal and state governments establish rules and procedures for how a business should be run.

Ethics are about doing the right thing. They are about well-based standards of right and wrong that prescribe what humans ought to do—usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Manuel Velasquez et al. They serve as guidelines for making decisions about how to behave in specific situations; they also guide us in evaluating the actions of others.

To underwrite their operations public organizations are more depen-dent on tax dollars, which are provided by an oversight body such as a legislature. Continual improvement of the processes of organizations has led to enhanced safety performance and efficiency benefits such as cost reductions and improved cycle times.

ETHICAL AND UNETHICAL LEADERSHIP ISSUES, CASES, AND DILEMMAS WITH CASE STUDIES

For this project, you will use the news story you brought to class. The multinational company invested heavily to investigate and determine the extent to which its competitors adhere to the anti-bribery law. Here are ten companies that have engaged in terribly unethical business practices and are, fortunately, being called out for it. They should ensure that the investors obtain their dividends in time.

The difference is between doing the right thing and the wrong thing. Business ethics are the philosophical core of any business and their outcome is crucial for economic development. Peter Cooper the great American Investor says "I have always recognized that the object of business is to make money in an honorable manner. I have endeavored to remember that the object of life is to do good. It refers to the commercial activities, either with other business houses or with a single customer.

Ethical and Unethical Business Practices.docx

Access options

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. More specifically, highly committed consumers may forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers.

The difference is between doing the right thing and the wrong thing. Business ethics are the philosophical core of any business and their outcome is crucial for economic development. Peter Cooper the great American Investor says "I have always recognized that the object of business is to make money in an honorable manner. I have endeavored to remember that the object of life is to do good. It refers to the commercial activities, either with other business houses or with a single customer.

Without a backdrop of shared attitudes, and without familiar laws and judicial procedures that define standards of ethical conduct, certainty is elusive. Should a company invest in a foreign country where civil and political rights are violated? If companies in developed countries shift facilities to developing nations that lack strict environmental and health regulations, or if those companies choose to fill management and other top-level positions in a host nation with people from the home country, whose standards should prevail?

To browse Academia. Skip to main content. By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. Log In Sign Up.

unethical business practices pdf

While I am enjoying the lovely summer weather and have read a book or two, I am shocked to the core about the number of ethical issues arising in the workplace I am reading about in the newspaper every day. For instance, who would have thought that one of our elected city councillors would blatantly use his corporate credit card for personal expenses? Not only that, it is understood the credit card was used for an entire two years and transactions in spite of multiple warnings. What were the consequences of his actions? In this situation, all the city could do was to take his corporate credit card away.

Consequently, the world economy is facing a crisis as businesses evade from paying taxes. The unfair competitive practices would only earn a company massive profits in the short run. Moreover, company executives evade form paying the taxes using the false statements.

1 Response
  1. Bowbolori

    Thomas de quincy on the knocking at the gate in macbeth pdf line parsons textbook of ophthalmology pdf free download

Leave a Reply