- Unethical practices
- The 5 Most Common Unethical Workplace Behaviors
- What is an unethical marketing practice?
- 10 Most Unethical Business Practices in Big Business
- Examples of Unethical Behavior
The 5 Most Common Unethical Workplace Behaviors
Deception, collusions, swindling… sounds like the plot of a best-selling novel. However, these terms are quite common in the commercial circles where immoral practices can be seen by the dozen. Whether it is a big conglomerate or a small business, the stakes of outperforming the competition are always high. This cut-throat struggle for survival and emerging as a winner attracts a lot of unscrupulous tendencies that have unfortunately become a part of the system. The urge to rule the market has made businesses selfish and all-consuming, and the obligation to operate responsibly has been put on the backburner. The lines between acceptable and unacceptable have blurred over the years, and the focus has shifted from the consumers to gaining higher profits and margins. A quiz app on the social networking website gathered data from 50 million Facebook profiles, which was then delivered to Cambridge Analytica. In another case, the Australian finance company, AMP is being scrutinized for misconduct in banking. Apparently, they were charging clients for advice which they never received. Consequently, the Chairman had to step down as evidence against the company started surfacing. The business world is mired with such scandals that have shaken up the world. While some get caught and must face public disgrace, others continue to bask in the glory of their unprofessionally accomplished success. Here are some common unethical business practices that many companies around the world are guilty of adopting for success. Many companies promote injurious products with misleading information that can be harmful to consumers or the environment, purely for the sake of improving the bottom-line. There is no dearth of examples of this corrupt practice. From breakfast cereals to automobiles, all companies have blatantly tricked the consumers by providing misleading information. For ages businesses have exaggerated on the qualities of their products and downplayed the inferior features to make them more saleable. This practice continues until consumers take notice and start questioning the authenticity of the information. Defamation of a competitor, misappropriation of their trade secrets, and trade mark infringement — all these fall under unfair competition which gives a wrong impression to the consumers about the competitor and its products. However, PepsiCo argued that there was no scientific evidence behind the claim. In the digital age, businesses have taken the route of cyber-defamation where they spread false information about a brand as an anonymous user on a social networking site or a blog with a fake screen name. There are laws governing this kind of libel and slander, and the offender can be slapped a fine to the tune of millions if caught red-handed. This has become a familiar scenario in small as well as big companies who make employees work for long hours and underpay them. Many employees are made to work under stressful conditions and are subjected to mental and even sexual harassment. In the wake of finding cheap labor, many companies in developed nations hire sweatshops in third-world countries to get their goods manufactured in bulk. The conditions in these workplaces are worse than one can even imagine. The tech giant Apple has been using the services of Foxconn, Taiwanese manufacturing company that has been manufacturing the coveted iPhone. Foxconn has been accused of employing child slaves working in hazardous conditions for 10 hours a day all through the week. Most companies are involved in the cooking of their books to hoodwink investors, lenders and end-consumers. They tweak their financial reports to show inflated profits and lowered depreciation. This makes investors think that the company is faring well, and they end up buying more stocks from the share market. InToshiba, the Japanese multinational, was held responsible for the mismanagement of its accounts. Inducement to influence a business decision is not uncommon in the corporate world. Offering something of value or money in return of a favorable dealing is usually witnessed between vendors and marketers. The pressure of surpassing the competition and wooing consumers year-after-year with the same products takes a toll on organizations. As a result, they resort to dishonest and devious activities. Even the biggest names in the industry are not untouched by this phenomenon.
What is an unethical marketing practice?
At some point in time, many people have been faced with the possibility of unethical companies or their decision to follow an unethical business practice. These practices give companies bad reputation, and the way we respond may involve making very challenging decisions. In some cases, we have to expose the unethical business practices, making the outside knowing what is happening to the world. The truth is that not every company follows regulations. Below we give words about legal basis and some cases helping to know more unethical practices. Ethics are beyond legal and doing right whether or not anyone is looking. As for business practices that are unethical, these business actions usually don't meet the standards of acceptable business operations, or employees that aren't doing the right thing. It may be an individual who is unethical or the entire corporate culture in the case of the corrupt businesses. Keep in mind that unethical actions are not always illegal, but they will hurt society. The Sarbanes-Oxley Act from was in response to corporate scandals. This act, abbreviated as SOX, makes it more difficult for corporations to commit financial fraud, protecting investors. It says that all CFOs and CEOs of publicly traded American companies must sign a statement that they have read the reports annual and quarterlyand vouch that they are accurate. Additionally, businesses must explain the logic if they don't have an ethics code. InToyota ignored information about safety and delayed investigating possible recalls. Inthey learned about sticking pedals and faulty brakes; instead of addressing the issue, they added side airbags. In some cases, Toyota faced accusations of hiding evidence for hundreds of cases involving death and rollovers, putting their drivers and passengers at risk. Apple relies on child slave labor that is working in dangerous conditions, for ten hours each day while being exposed to cancerous vapors. The conditions at the manufacturing plant Foxconn are bad enough that they had to install "anti-suicide nets. Apple has reduced some of their work with Foxconn, but they still rely primarily on them. Apple also used Irish tax loopholes to avoid some taxes. Monsanto created Agent Orange, a chemical weapon used in Vietnam that still affects the population today. Until now, the company works in GMO foods and own the vast majority of seed patents more than 95 percent. They sue small farmers aggressively and work to discredit dissenters by using fake online profiles. The tobacco giant Philip Morris has been considered unethical for years as a great deal of advertising from them targets kids. Despite stricter regulations, Philip Morris still prominently places ads and products in magazines, convenience stores, and delis. They continue to try to create the image of smokers being cool and are considered the biggest reason for young smokers. Chevron has attempted to avoid millions of dollars' worth of taxes plus 18 years' worth of unethical business practices. When they dumped billions of gallons worth of toxic waste into Ecuadorian rainforest, they were sued and tried to deny their involvement even though there was plenty of solid evidence. They even faked a letter from Ecuador's ambassador that claimed to dismiss the lawsuit and worked to discredit the judge, delaying the suit for two years.
10 Most Unethical Business Practices in Big Business
Unethical business practices actively or passively cause harm to people, animals or the environment. These may include child labor, forced labor, unfair wages, animal testing and dumping toxic waste into the environment. Some unethical business practices have even greater consequences including death due to negligence and even genocide. Other actions also constitute unethical business practices. For instance, attempting to create a monopoly on a market has unethical implications because without competition companies have no incentive to set fair prices or rates. Of course, companies commit other unethical acts despite regulations and legislation. Many companies refuse to raise their minimum wage rates even though minimum wage does not automatically equal a living wage. While many people think some of these unethical business practices do not happen in the modern world, many companies continue to use unethical business practices. In many cases, they only pay a fine but do not face further consequences once their actions become public. However, some face public outcry if not criminal charges when ethics violations result in loss of life. In many cases, these companies pay settlements to families of victims to major violations such as these, but they may not suffer any loss in the bottom line. Why Are Rules and Regulations Important? What Is the Meaning of Safety Education? What Is Routine Maintenance?