Unethical Business Practices

One of the reason the world economy is presently in crisis is the lack of business ethics in the market. In other words, unethical business practices caused the recent economic turmoil. The breadth and depth of what may be classified as unethical business practices ranges from faulty or fraudulent accounting practices to unfair treatment of workers.

Could you give a definition for business ethics ? How could you or your business identify and stay out of unethical business practices?

Unethical Business Practices

When unethical business practices affect thousands of people, it will become a hotly debated topic.

Witness the latest Bernie Madoff scandal, and in recent years companies such as Enron and Wal-Mart who have come under fire for unethical business practices.

Without a solid moral foundation in which you ground your business dealings, you’re constructing a house on sand.

So, what could be classified as unethical business practices?

The generally accepted notions of unethical business practices are:

- Greed to amass excessive profit.
- Unilaterally fixing exhorbitant price looking to non-availability of competitors (monopoly).
- Distortion of facts to mislead or confuse.
- Cheating the customers due to their innocence or ignorance.
- Extra charging customer with exorbitant fees.
- Selling inferior or coped products as the real thing (copyright infringed).
- Invasion of privacy and misused of trusts.
- Hi-jacking of confidential data for obtaining personal or professional gains.
- Lack of transparency and resistance to investigation.
- Fraudulent accounting practices.
- Unfair treatment of workers (Child labour, pro-longed working hours for the poor).
- Bribery.
- sexual harassment.
- Racial discrimination.
- Lack of concern for the environment.

Avoid Unethical Business Practices

Since unethical business practices do more harm than good to yourself and your business, it is better to acknowledge the importance of ethical business decisions.

Unless you are planning for a hit and run thing (which is unethical business practices anyway), if you wish to thrive long-term, you must adopt sound ethical business decision-making practices.

Companies and business people who makes sound ethical business decision-making practices will not only strive and out-run the competitors, but also create a healthy and wealthy environment to the business stakeholders.

Companies and people who behave in a socially responsible manner are much more likely to enjoy ultimate success than those whose actions are motivated solely by profits.
Knowing the difference between right and wrong and choosing what is right is the foundation for ethical decision making.

In many cases, doing the right thing often leads to the greatest financial, social, and personal rewards in the long run.

Even though businesses can often attain short-term gains by acting in an unethical fashion, such behaviours tend to undermine the economy over time.

So, avoid unethical business practices, create values to the society, add values to people’s life in the right way.

“This is how wealth is produced in society: Individuals seek to meet their own needs by meeting the needs and wants of others.” ~Steve Forbes

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