Consequently, the world economy is facing a crisis as businesses evade from paying taxes. The database is updated daily, so anyone can easily find a relevant essay example. Understanding and managing organizational behavior (6th ed.). outside of our normal moral considerations). Some companies are used to offering the intermediaries with kickbacks so that they can continue purchasing their products. & Jones, G.R. 1. Once consumers know that a company employs unethical business practice in their operations, the effects are inerasable. Currently, G4S’s has slipped in its ability to manage its global empire. The symptoms of the problem are merely firing the managers and leaders attempt to quell on an everyday basis. In the 21st century, the role of ethics in international business transactions and interactions will receive more attention. (2019) 'Unethical business practices and their effects'. Moreover, the companies should adhere to the corporate social responsibility policy that obliges companies to honor the surrounding environment and the people in it. Indeed, unethical business practices harm a series of people, whereas; only a few greedy incumbents enjoy the fruits of their ill deeds. Share 18. The unethical business practices in organizations result from the corporate culture of the organization, where the entire business is corrupt from the top to the bottom, and often individuals may also be unethical in their work. Schools where unethical practice is high in operation cannot produce disciplined and quality graduates. (2010). "Unethical business practices and their effects." Such cases may have adverse consequences to the business, which may end up paying heavy fines, or even being ordered to close down because of their unethical practices. 2. Unethical Business Practices. A company like GlaxoSmithKline that has had some good reputation for many years can have its brand name torn down because of a single unethical incident. We utilize security vendors that protect and In the GlaxoSmithKline case, the company promoted its unapproved antidepressants for human consumption (Thomas & Schmidt, 2012). Cases have occurred where auditors are bribed to certify false financial statements so that powerful companies can evade from paying the rightful amounts of taxes to the government. 37 Full PDFs related to this paper . Moreover, company managers should understand that the government depends on taxes to develop the nations. At the end of the day, the government, employees, investors, competitors, and the customers suffer while the crooks enjoy the fruits of their unethical business practices. The unethical business practice clearly indicated that the executives of the company were extremely selfish. unethical business practices3, clearly illustrate the perilous consequences of corporate misconduct which has not only ruined these organizations but also has wounded the society and the country at large. 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. Some companies pay their suppliers so low, such that the suppliers lack the value of the efforts that they input in their work. Further, the company distorted the data of a diabetic drug that recorded very high sales, and it marketed other drugs improperly. This very sad incidence affects innocent individuals who purchase such products unknowingly. Moreover, company executives evade form paying the taxes using the false statements. While GlaxoSmithKline may not feel the pain of paying such a huge fine, the company executives should know that its publicity reputation was destroyed. This sad incidence clearly indicates that the greedy executives of such companies care less about those individuals and other living things that are affected in one way or another. Share. Materials in this volume will help teachers and students to learn about, explore, and discuss ethics and ethical issues in international business. IvyPanda. Whenever the investors resolve to have the company investigated, the company managers and other executives resist the investigations. Retrieved from https://ivypanda.com/essays/unethical-business-practices-and-their-effects-term-paper/. manager, Unethical practices _____ 1. However, greed has led the present businessscenario towards unethical business practices, legal complications and generalmistrust.Code of EthicsLot of organizations implement the code of ethics in their company polices, whichthey implement during induction and regular training. Firstly, the court can impose heavy fines to the company, which can declare it bankrupt. A free environment is present or promoted where acts of violation of norms to amass wealth in an unethical manner is followed. The unethical practices in businesses are adversely affecting governments through the loss of taxes (George & Jones, 2010). The court can order the suspension of the company’s activities for a considerably long period. G4S is at the risk of destroying its reputation; therefore, the future of the company is at risk. Global Journal of Management and Business Research Volume XVII Issue IV Version I. Y ear ( ) A. The unethical practices in businesses are adversely affecting governments through the loss of taxes (George & Jones, 2010). This term paper on Unethical business practices and their effects was written and submitted by your fellow student. (2012). The executives confront the employees; they pay then low wages, and increase pressures in the work environment (Hill & Plimmer, 2013). Katharine Jones. The company has a motto of delivering excellent services and maintaining the highest level of ethical standards. Is it Ethical for Employers to Search Social Media for Information about Applicants for a Job. No amount of fine can compensate for the unethical practice of selling unapproved drugs to humans. Therefore, company executives are obliged to ensure that the company pays taxes exclusively. In case the company faces strict regulations in the country of production, the unsafe products are shipped into third world nations. Web. George, J.M. unethical behavior. Unethical business practices are likely to have adverse consequences to the organization. Further investigations indicated that the company lured the doctors by enticing them with luxury trips and spa treatments. 27 August. "Unethical business practices and their effects." Therefore, managers and supervisors should be warned that employees would be submitting to their unethical orders to set them up. Even after paying the fine amounting to $3 billion, GlaxoSmithKline does not tremble because their sales exceeded that amount by far. Hill, A. In the case of molesting the investors, the company places itself at a high risk of lacking investors in the future. Many have attributed this rise of infidelity and immoral behavior to the recent US presidential election and the ongoing behavior of Donald Trump. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. It was done as a way to provide knowledge to young business professionals … Your privacy is extremely important to us. Some unethical practices that harm the employers include low wages and unsafe working environment. In its investigations, Wal-Mart discovered that its competitors were indeed violating the corruption act that guides foreign investors. As discussed, some vulnerable employees suffer in silence, and it is upon the business managers to ensure that they treat all their employees equally. 2019. The executive may receive merciless jail terms and finally, the company may end up becoming bankrupt because of the high costs associated with unethical business practices. This is IvyPanda's free database of academic paper samples. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Unethical business practice can destroy business's reputation and possibly lead to legal troubles (Rahman, 2008). Regardless of how effective their drugs would be, informed customers will tend to shy away from purchasing their drugs. In most businesses, at least one business practice is done in an unethical manner. They should ensure that the investors obtain their dividends in time. Chalmers (1990) has noted that though scientific misconduct is usually associated with deliberate data falsification, “sins of omission may be even more important” (p. 1405). However, ethical practice in the building and construction industry is the vital importance in the same way to other disciplines. Unethical Business Practices You might find many companies who blatantly thrive on unethical behavior and practices. Moreover, GlaxoSmithKline financed the publishing of a medical journal that had manipulated clinical trial data to promote the use of the Paxil drug in children. They are unacceptable because they go against the principles of morality. The destroyed reputation of such companies may cause their sales to reduce drastically, and the company may end up being bankrupt. The company’s director agreed to pay fines amounting to $3 billion because of promoting a drug for unapproved uses, and improper marketing for other drugs (Thomas & Schmidt, 2012). Small businesses all over of the world have been put out of business by Wal-Mart’s financial ability to lower prices to the point that small businesses cannot survive which has also tarnished its brand in many of the company’s target markets (Howell, 2016). G4S: The inside story. Glaxo agrees to pay $3 billion in fraud settlement. – Resorting to dishonesty, trickery or deception. What’s your deadline? Unethical Business Practices Directions: Ethics are the basis for good and honest business practices all over the world. 201. learners. 5 Most Common Unethical Behaviors in the Ethics Resource Center (ERC) Survey . Prev 1 of 11 Next. Polluting the environment should be outdated, as companies ought to employ practices that are environmental friendly. Use your ← → (arrow) keys to browse. To make the matters worse, the subsidiary’s parent company suppressed the investigations through bribery. ... Loewenstein and Moore 2005) described how auditors are often blind to clients’ internal changes in accounting practices, but only if the changes appear gradually. Technologies LLC, a company registered in Wyoming, USA. It is noteworthy that the worst repercussion of unethical behaviors regarding the destruction of the environment is the lowered organizational credibility. For full functionality of this site it is necessary to enable JavaScript. unethical (i.e. Need a custom Term Paper sample written from scratch by Unethical business practices as those practiced with Wal-Mart’s competitors will result into bad publicity, and the company may never win the publicity trust in the future even though it struggles to employ ethical conducts. READ PAPER. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. The New York Times. If this is the case, if you were to ask someone who was involved in an outstanding conversation and aske… All companies ought to adhere to the pollution norms set by the government. The Underlying Causes of Unethical Business Practices Since the business practices of concern involve organizational behaviours and interrelationships, it is important to understand the relationship between consumers, 8. retailers, tour or wholesale companies and government regulations. Sure enough, the whistle blowers were some of the employees of the company. IvyPanda. As a result, unethical business practices become an effective tool with the help of which companies can take a competitive advantage in their business, whereas politicians using financial support of business cover unethical practices of their supporters. They should make it their obligation to think about their descendants who will need a safe environment. The company’s partners, customers, and all other stakeholders will feel intimidated to be associated with a company that does not value the environment. Everybody has conscience and also knows when he/she is doing what is wrong or what the society … The Relationship Between Academic Dishonesty and Unethical Business Practices. We will write a custom Term Paper on Unethical business practices and their effects specifically for you for only $16.05 $11/page. However, these unethical business practices continue until consumers take notice and start questioning the authenticity of the information. IvyPanda. Thomas, K. & Schmidt M.S. In many companies, employees are obliged to submit to their supervisors and managers. Download. Every business must have suppliers of raw materials and customers who purchase their finished products. Patricio Dobrée. August 27, 2019. https://ivypanda.com/essays/unethical-business-practices-and-their-effects-term-paper/. In the case of customers, the involved stakeholders of the company must ensure that the customers obtain quality products and services. – Distortion of facts to mislead or confuse. An Institutional History of the Field, and an Intellectual Agenda Within some of the earliest writings in the history of Western and non-Western traditions of thought we find philosophers evaluating practices, virtues, and vices in commerce and money-lending (see $+$.6). The highly sensitive information was very essential for the prosecutors to file charges against the GlaxoSmithKline Company, and it was very controversial to find out who disclosed those unethical practices. Essentially, there are numerous fraud cases in the management of the company, and those practices are driving G4S into the grave. Essentially, if the global economy is to be on the safe side, companies must adopt ethical business practices. $°f=ã™Ek7/6…hâ~¨Ž•0º\Aß²‡C#º$¼aÄ엵•t\-.Ç~€¶uç$ q?õf?¨‘ÌÖ¼ÛËã¾+ª2ûÎKË£”¿Ð‚ˆç¤)áPëƒ^+ùVµ@\+›\ï7Ã8ךãk”@|‹)†a‡^VT%à$ž~R’ìô“: øݾª}Í~*eفf{žï¥Eˆ|«Xô¤¹Xd–æåÈ^Nìÿ,vHË­¥ˆ¶Ï-(æ¢(ðn,Â{ºDZ„/XZ¤›±h‡(´(¤×öу½cʲԮ°¸ÆbŒÅé'l°¸Â"¶ uˆÑ)–Y"ÿ¦%zßR€çF«ë áCÐ0. It may be an individual who is unethical or the entire corporate culture in the case of the corrupt businesses. 2.1k Views. Business executives must ensure that their businesses spend their investors’ monies in worthwhile projects. 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