Ethical and Unethical Practices in Business

Running head: ETHICAL AND UNETHICAL PRACTICES IN BUSINESS
Ethical and unethical practices in business
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1ETHICAL AND UNETHICAL PRACTICES IN BUSINESS
Ethical and unethical practices in business
Business ethics has been one of the most controversial topics of discussion over the
years. The term refers to the core business policies as well as practices in any business. Most
of the companies of nowadays implement business ethics in their business in order to prevent
their organizations affect ting from the controversial issues like bribery, discrimination in the
work place, corporate social responsibility and so on (Crane and Matten 2016). Different
laws and regulations are implemented in order to protect and guide business ethics. A
framework is followed in terms of business ethics by the organizations so that they can gain
the trust of their customers.
The main purpose of business ethics is to ensure the trust between the organization
and its customers. Beside customers, by practicing business ethics in business, the business
individuals also maintain a healthy business relationship with their market participants
(Weiss 2014). It can be rightly said that business ethics is greater than principle and values,
which determines the conduct of the employees in business. Rather it alludes to the corporate
activities which can be with both the customers as well as other business organization.
Business ethics can implemented on overall aspects of business. As the outcome of any
business is strongly depended on the society, therefore, the organizations need to put their
attention the social welfare (Crane and Matten 2016). It is needless to mention that the
primary objective of any company is to gain profit. However, at the same time, it should
focus on the contribution to the society by means of fair practices.

2ETHICAL AND UNETHICAL PRACTICES IN BUSINESS
Code of Ethics
Most organization these days include ‘Code of Ethics’ in their business policies so
that they can introduce the new hire with the ‘Code of Ethics’ of their company policy during
the training period or during the time of induction (Trevino and Nelson 2016).
‘Code of Ethics’ is the set of principles which business professionals perform business
practices ethically. It outlines the behavioral approach problems in view of the mission and
vision of the company. It guides the professionals how to follow the ethical principles of the
company that are bases on its core values (Trevino and Nelson 2016). The ‘Code of Ethics’
mainly comprises of three components that are code of individual practices, code of business
ethics and code of conduct for the employees.
The business organizations incorporate ‘Code of Ethics’ in their business which is
supposed to be strictly followed by the employees. The ‘Code of Ethics’ is of crucial
importance in terms of overall business growth of the company. A complete set of rules and
regulations are set by a company in terms of behavior that ensures the quality as well as the
reputation of the company (Hoffman, Frederick and Schwartz 2014). Breaching of the rules
and regulations regarding ‘Code of Ethics’ may result in the permanent dismissal or
termination of the employee from the organizations. In order to supervise whether the ‘Code
of Ethics’ are followed or not, the organizations appoint officer, who not only regulates the
‘Code of Ethics’ but also set the policies in order to mitigate the risk factors related to
breaching the laws and regulations set by the company.
Ethical practices in business
Certain practices are there in terms of ethics, which the employees as well as other
members of a company should follow. In order to build a transparent reputation of an
organization so that it can run its business process smoothly towards the success (Crane and

3ETHICAL AND UNETHICAL PRACTICES IN BUSINESS
Matten 2016). Thus, the practices are mentioned below that is supposed to be performed in an
organization.
Investors: A company should assure the investors that their investments are safe in the
company and it should make timely payments to them.
Employees: The Company is liable to give its employees opportunities in terms of promotion
and other aspects like healthy working environment and so on (Trevino and Nelson 2016).
Customers: the customers need to provide complete information related to its products and
services in order to avoid any discrepancies. On the other hand, the company should not
make wrong usage of its customer’s personal details.
Government: Rules and regulations including tax laws and other directives should be
essentially followed by the company so that the reputation of the company does not get
hampered (Crane and Matten 2016).
Completion: It is often seen that companies adopt unscrupulous tactics or go in a wrong way
to win over their rival industries (Weiss 2014). Thereby, organizations should implement the
measures in order to avoid such issues.
Environment: Most of the companies primarily aim to pool maximum profit from the
market and in course of that they exploit the natural resources. However, they can put control
on such issues by introducing ethical business practices in their organizations. Additionally,
they should fulfill all the laws and regulation directed by the pollution control board in order
to maintain the reputation of the company (Crane and Matten 2016).
Unethical practices in business
Businesses that are inclined to unethical activities in their business process exist in a large
number. They simply violate the rules and regulations set by the government in the in order