Unethical business practices and ethical misconduct in any company can lead to very serious consequences which can cause the company time and money in trying to repair their business reputation and any legal issues that may arise depending on the severity of the situation. Integrity breakdown can dramatically cost a business millions of dollars and even prison time in some extremely serious cases.
In order to really protect your company from an ethical misconduct scandal, you need to incorporate a management plan in order to stay on top of any unethical practices within the corporate environment. To do this you must first understand the effects that poor corporate ethics can cause to your company in order to setup barriers to help prevent something like this occurring. This expert guide will give you inside advice on the major effects that ethical misconduct can cause to your company. But first:
There are many different factors that can cause poor business ethics and unethical behavior. The top factors include, but aren’t limited to:
Unethical business practices, shady business practices, and poor workplace ethics have many bad effects on a company, including:
The main goal of any corporation is to drive through sales from customers to maintain a strong presence in the business world. Unfortunately, when a level of unethical behavior starts to form, it can cause productivity levels to decrease which surround the person or corporation in question. When this happens, errors start to form in a once productive production line. This in turn can cause other employees to feel unmotivated resulting in a complete slowdown of the sale process that can lose you valuable time and money.
When managers or leaders start to make unethical decisions, it can lead to employees losing a lot of respect for their bosses. When this occurs, it can be difficult for the leader to gain back the respect and trust that’s been lost. It also causes problems for them to run a successful business when their team feels as if they’re making poor or unethical business choices. Employees may also feel resentful towards their leaders. This is because, as a part of the company, they feel their reputation is also starting to fall apart along with the business’s reputation.
When unethical behavior occurs in a business setting, there’s a high chance it will be publicized. This in turn can cause your company to lose its credibility, resulting in customers abandoning sales with you, bad-mouthing your business, and not holding respect for you anymore. To gain credibility back a corporation needs to create a well-planned rebranding and marketing campaign, along with hiring a public relations team to help improve their reputation. This can lead to millions of dollars in costs, especially if you’re a well know and worldwide organization.
In severe cases of unethical misconduct, it can lead to severe legal issues that result in loss of time, large fines, and other penalties with possible jail time. The cost of legal battles can go on for months to years and can lead into the millions of dollars depending on the corporation’s particular situation and level of unethical behavior. In addition to this, executives who break the law can lead employees to also follow in pursuit in facing criminal charges.
In order to stop unethical behavior in the workplace whether your company is large or small you need to consider a few things. These include:
There are many examples of unethical business practices, some of them being illegal, others, legal but still shady. Some examples include:
In any business environment, it’s important to maintain a high level of conduct and ethical behavior to ensure the success of a company. By knowing the consequences of what unethical misconduct can do to your business, you can work on keeping a strong and positive presence within your corporation to limit this behaviou from happening. Have you made a plan to reduce the risk of a scandalous situation?
Aaron Gray is the co-founder of Studio 56 and is a passionate digital marketing expert who has worked with some of the largest digital marketing agencies in Australia. He has been working in the digital marketing field for ten years. Aaron loves to travel the world to not only enhance his cultural experiences but learn and enhance his skills in the digital marketing industry. He is dedicated to helping others reach their online marketing goals.
discuss the consequences of unethical practices to a business entity
2.why are business thriving despite being unethical