Unethical Practices in Business

This assignment delves into the detrimental effects of unethical practices within companies, analyzing cases related to children's toys, pharmaceuticals, and human resource management. It highlights how such actions negatively impact consumers, employees, and organizational performance in the long run. The document emphasizes the importance of ethical decision-making and proposes strategies for businesses to adopt ethical practices, ensuring sustainable success.

Running head: BUSINESS ETHICS AND SUSTAINABILITY
Business Ethics and Sustainability: Ethical Dilemma
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Author Note

BUSINESS ETHICS AND SUSTAINABILITY
Introduction
Business ethics are important for any organization to operate with reputation and
sustainability. Ethical practice is based on the honesty and trust which is beyond the company’s
only concern with profitability. In the business world of 21st century the ethical misconducts
have caused great problems for many large organizations (Spencer-Cooke and van Dijk 2015).
The following analysis of certain case studies demonstrates some practical examples of ethical
dilemmas in business practices. Some ethical dilemmas are personal; some are in global
perspective (Weiss 2014). Overcoming the ethical dilemmas successfully will help the company
to build the commitment and trust among its stakeholders, employees and consumers.
Ethical dilemma in Producing Children’s Toys
As a responsible product manager it is my responsibility to ensure the productivity and
competitive edge of the service. He takes initiatives that materialize the organization’s desired
goals. However in order to increase the product managers often compromise with the ethical
conducts. In the business of producing children’s toys the product manager did not consider the
ethical practice of manufacturing the toys in the foreign country like most toy manufacturing
companies (Tariq Anwar 2014). Even after experiencing that the host company is not following
the procedures that are aligned with the organizational ethical codes and conducts. The manager
also observed that how the children are involved as manufacturing labors (Rigg and Salamanca
2015). As the organization would experience large cut in the manufacturing expenses the product
managers ignored all these issues.

BUSINESS ETHICS AND SUSTAINABILITY
Responding to this Dilemma
There are three two ethical issues in front of me; one is that the manufacturing company
is not following the standard manufacturing procedure and second is that the manufacturing
involves child labor. If the company’s involvement with child labor is exposed it will not only
greatly affect the organization’s reputation but also the adult employees whose lives are
depending upon the manufacturing operations. As a deputy manager if I close down the
manufacturing system some other company will take up the opportunity and the children will
continue to suffer. As a responsible business practitioner I have ensure the educational
development for the children. In order to do that I will have to raise the parent’s wages and make
it mandatory for the children to attend the school for certain time of the day and then they will
work for less time. The organization has to bear the education cost for those children as well.
Ethical dilemma in Pharmaceutical practices
The regional marketing manager of PharmChemCo has just come to know about a bad
news from the recently held meeting by one of the Vice Presidents. The scientists at SFW
University research lab the scientists have discovered that the best herbicide of the company has
elements that can cause harmful side effects. The news has been kept hidden so far but news is
going to get published soon that will harm the reputation of the company (Goldacre 2014). The
meeting was held to find out possible solutions. The marketing manager was also suffering from
another conflict whether he should inform his friend about it or not. His friend has invested
significant share on the company and encouraged his clients to do so. If he tells him about the

BUSINESS ETHICS AND SUSTAINABILITY
incident he will sell his share and will urge his clients to do the same which will cause the
company great loss.
Responding to this Dilemma
As a marketing manager I cannot afford to lose so many shares, at the same time the ethical
dilemma should be overcome. The first thing is that I have to make sure the marked herbicides
are not getting produced anymore and the already made products are not reaching the market.
Then I will inform Freddie because as a friend it is my responsibility to inform him about the
coming problems and let him take precautions. I will have to suggest him to withdraw his share
but I will try to convince him not to urge his clients to withdraw the share prior to the publication
of the news. This I will be able to save the share to some extent before the publication. Freddie
will inform the clients but his faith over me and the company might prove to be helpful in this
case.
Ethical Dilemma as HR Manager
The human resource manager of AllCure pharmaceutical is having an ethical dilemma
regarding the employment of one new employee in her company. Two of the candidates have
been finalized but as the work responsibility also requires social media activities the manager has
been investigating their social media performances. The HR manager has found that one of the
candidates has well maintained social media profile and she is experience of visiting many places
(MacDougall et al. 2015). However the HR manager struggled to locate the other girl on social
media but after searching a while the manager found that one of her intern is her friend on social
media. From she could access her profile and got to know that she is involved in heavy partying
and taking illegal drugs. So the manager is concerned what might the consumers say if they find

BUSINESS ETHICS AND SUSTAINABILITY
that an employee of the company is involved in such activities but at the same time she has better
than the other girl as a candidate, so she is struggling to take the final decision (Dijkmans,
Kerkhof and Beukeboom 2015).
Responding to this Dilemma
As a human resource manger it is my primary duty to select the most suitable candidate
for the job profile. I have to take care of the fact that the company reputation is not being
hampered by any of the new employees. Though the new girl has better employee potential on
paper but her indecent activities on the social media can harm the company in future. Therefore
it is easier for me to finalize the girl in this case. The first girl is better suited for the profile and I
will make sure she is getting trained well especially in those areas where she is lacking behind.
Ethical Misconduct in Organic Food Business
Western market has been experiencing a flood of organic products in their supermarkets.
Many recent investigative reports have exposed that the companies are applying many unethical
practices to maintain the huge business of organic products. In most cases the companies are not
offering what they have promised to their consumers. The USA government policies support
products with 95% organic elements to be labeled as organic (Mosier and Thilmany 2016).
Ingredients like monosodium glutamate or carrageenan are harmful for health but are allowed by
the government in the organic foods. The government allows the companies the organic label if
only they possess compliance record and system plan. The temptation of the huge profit in the
organic business many companies have engaged themselves in unethical practices. American

BUSINESS ETHICS AND SUSTAINABILITY
company Target, Aurora Dairy or many German organic egg supplier companies few such
companies that are involved in similar ethical misconducts. The tradition wrong practice was
buying general food and labeling them as organic food but now the companies are manipulating
laws related to organic labeling of other countries in their countries; like an organic product in
Moldova is being sold on an European company’s site as organic. Harmful chemicals have been
found in organic products from China. The manufacturing of organic food in western countries is
far more expensive than conventional food (Gray 2016). As a result the global manufacturing
nations and farmers are pressurized to produce them in unethical ways.
Responding to this Dilemma
I believe in this case, Consumer pressure would be a strong force that can lead changes. I
would urge the government to evaluate the laws related to international trade, climate change and
environmental protection and apply necessary changes in certain areas that could prevent such
practices. The government will ensure that all the manufacturing companies and farmers are
following the strict regulations before providing them with the organic label. If I was a part of
any organic food supplier company I would make sure that the manufacturing is following the
necessary rules and regulations. The company has to invest more on the manufacturing and
finally I would urge the management to cut off the ties with manufacturing companies who are
involved in unethical practices.
Ethical Misconduct in Uzbekistan’s Cotton Business
Uzbekistan is one of the world’s leading exporters of cotton. The Uzbek government
forces millions of children to work as cotton harvesting and bearer labor (Bhat 2015). The
government threats the citizens and forces them to grow cotton in order to meet the production

BUSINESS ETHICS AND SUSTAINABILITY
quota. Working at the cotton field exposes the children with harmful chemicals and other health
hazards. From the pressure of foreign companies who import cotton from the country; like
Maarimekko from Finland, Mark & Spencer from UK, H & M from Sweden or Levi’s from USA
have pressurized the national authority to change the situation. So in 2012 the authority
implemented a policy that does not allow children under 16 to work in the cotton fields. Almost
150 companies took the cotton pledge that pressurized the government to take the initiative but it
compensated the loss by forcefully employing adults as labors irrespective of their existing jobs
(Islam 2015). The government is also targeting other markets like Bangladesh or China. Also the
pledge signing companies cannot ban the Uzbek cotton totally as they will lose the export
entirely and Uzbeck cotton will find another market. There is also the mix cotton strategy where
cottons from different sources will be mixed and the Uzbek cotton can also enter the western
market via Asian countries as well.
Responding to this Dilemma
As a member of the working group who are working to eradicate the child labor of
Uzbekistan we would first draw the international human rights watchers’ attention towards the
wrong doings of the government of Uzbekistan regarding their use of forced child and adult
labors in the cotton fields. We have to act as whistle blowers in this scenario. The laws related to
the country’s human rights protection and child education have to be evaluated. The laws should
protect the children’s basic education rights and the government should make sure that the
unemployed youth of the country are employed in the place of those forced adults. The cotton
importing countries has to invest more money on the importing so that it becomes easier for the
nation to implement effective and ethical strategies.

BUSINESS ETHICS AND SUSTAINABILITY
Conclusion
Immediate unethical practices might bring the company profit but it will affect the
organizational performance in the longer run. If the companies that are engaged in ethical
misconducts should immediate start evaluating their policies and strategies in order to resist the
future negative outcomes (Ferrell and Fraedrich 2015). The above discussion over certain
unethical practices in certain companies has highlighted how the practices have been affecting
not only the consumers but also the employees and the organizations. The examples of ethical
dilemmas in producing children toys, pharmaceutical companies and human resource
management have demonstrated how companies can experience various circumstances which
might be tricky. However the proper implementation of the suggested strategies can help the
company to overcome such situations and ensure sustainable business for longer future.

BUSINESS ETHICS AND SUSTAINABILITY
Reference
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Education.
Goldacre, B., 2014. Bad pharma: how drug companies mislead doctors and harm patients.
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Gray, N., 2016. Developing organic, fairtrade, and ethically produced products. Developing
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Islam, M.A., 2015. Legitimacy Threats and Stakeholder Concerns Within Supply Chains.
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BUSINESS ETHICS AND SUSTAINABILITY
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