ethical and unethical business practices
Ethical and Unethical Business Practices
Business ethics is the most debated topic of our times. The difference between right and wrong business practices and their outcome is crucial for economic development.
- Company's assets, funds and records
- Conflict of interest
- Management and employee practices
- Information on competition
- Investors: Ensuring safety of their money and timely payment of interest.
- Employees: Provision of fair opportunities in promotions and training, good working conditions, and timely payment of salaries.
- Customer: Complete information of the service and product should be made available. Personal information of the customers should not be used for personal gain.
- Competition: Unscrupulous tactics and methods should be avoided while handling competitors.
- Government: Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices, and unlawful activities like corruption and bribing should be adhered to.
- Environment: Polluting industries should ensure compliance with the government norms regarding air, water and noise pollution.
- Resorting to dishonesty, trickery or deception.
- Distortion of facts to mislead or confuse.
- Manipulating people emotionally by exploiting their vulnerabilities.
- Greed to amass excessive profit.
- Creation of false documents to show increased profits.
- Avoiding penalty or compensation for unlawful act.
- Lack of transparency and resistance to investigation.
- Harming the environment by exceeding the government prescribed norms for pollution.
- Invasion of privacy used as leverage, for obtaining personal or professional gains.
- Sexual discrimination
- Codes of corporate ethics must be formulated so that employees are aware of the organization's expectations regarding ethical norms and conduct.
- An appeal process must be in place so that any unethical practice can be brought into light.
- Seminars on business ethics should be conducted for employees. This will help them in understanding the importance of ethical work culture.
- Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization.
- To promote ethical behavior, performance management system of the organization must be modified to incorporate ethical behavior as a parameter for appraisal and rewards.