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Study of unethical business practices - Research Paper Example

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Peter Cooper, American creator, maker and Philanthropist explained his perspective of business and ethics in the following words: "I have always recognized that the object of business is to make money in an honorable manner…
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Study of unethical business practices
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"Study of unethical business practices"

Download file to see previous pages Unethical means not following permitted standards of social or professional behavior. It is opposed to law or integrity or scruples. (The Free Dictionary by Farlex) WHAT IS MEANT BY "UNETHICAL BUSINESS PRACTICES" Unethical business practices are acts that are contrary to business ethics In today’s world, there is a need do business with an open eye, incessantly measuring & analyzing the consequences & impact of actions and decisions taken .This responsibility is seen to extend ahead of the legal obligation to comply with legislation and seeing organizations taking further initiatives to improve the quality and standard of life for employees and their families as well as for the society at large of their own accord. The companies that carry on are the ones that identify ethical issues and correct them before they become tribulations. Our behavior in the business world is determined by moral values and beliefs. These are the integral part of all the activities that are a part of our business; they are part of our dealings either with other business organizations or with a solitary customer and are embedded in the creation of an idea to its sale. While the goal of all business is to earn profits, it should contribute to the society by ensuring that ethical and just practices are followed. It is important to note that all unethical practices are not illegal, therefore the deciding factor for going for an act is the person’s own conscience. Unveiling of unethical behavior among co-workers actually examines one’s own values and ethical behaviors. After all, unethical behavior that is permissible by law comes in the grey area between what is right and what’s not. Therefore, it is always difficult to make a decision in such situations. Furthermore, perception of ethical and unethical varies from person to person. What is unethical for one person may not be so for someone else. For example, some people don’t consider the act of making long distance call on the company's expense as unethical. WHY ARE UNETHICAL BUSINESS PRACTICES COMMITTED? 1 Stress by the higher management: Pressure from managers is one of the prime reasons why people get involved in unethical practices. The managers in an attempt to achieve better profits for the organization often set targets that are unrealistic and unachievable for the employees. Target and goal setting is a tool that is used for motivating employees but in this case it is just a stress causing factor. Their targets and goals send the following message to their employees: "I want it done, no matter what". Subordinates due to such targets come under intense pressure to meet their targets because their better career prospects rely to a large extent on the achievement of their performance goals. If the goals are not met, then the chances of their career growth are reduced. 2. Personal greed and a desire Personal greed to promote one's career is the other reason that forces people to commit unethical business practices. It has led the current business state of affairs towards unethical business practices, legal consequences and mistrust. Often, top executives are promised huge benefits if they achieve their goals and the ...Download file to see next pagesRead More
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