Unethical Practices of Corporate Executives: The Idea of Entitlement

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This report discusses the unethical practices of corporate executives, including the idea of entitlement, discrimination, abusive behavior, lying to employees, and deliberate deception. It also covers the role and responsibility of corporate executives and the impact of unethical behavior on an organization's productivity and valuable human resources.
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DISCUSSION
PAPER
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The idea of entitlement, some corporate executives behave unethically because they feel they
are entitled to whatever they can get away with or steal.............................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
This report will cover meaning of corporate executive and their role and responsibility.
Corporate executive are the person who work at top-level of management to direct and control an
organization. Further, meaning and types of unethical practices will be studied. Unethical
behaviour is an activity which goes against of organization rules and standard. Moreover, some
unethical practices like discrimination, abusing behaviour and lying to employee will also be
analysed. Corporate executive use unethical practices to save their power and position which
create negative working environment (Ahmad, Klotz and Bolino, 2020). Due to this, entity fails
to achieve its objective along with reduction in valuable human resources.
MAIN BODY
The idea of entitlement, some corporate executives behave unethically because they feel they are
entitled to whatever they can get away with or steal
Corporate executive is manager level staff member of corporate enterprises. Its primary
job is to ensure that organization meets its business purpose and remain financially stable in long
run. The main role of corporative executive is to establish long term goal, formulate rules and
policies, allocate resources and coordinate work activity. The overall organization success is
depended on corporate executives who take top-level managerial decision. Some time, corporate
executives may ask for suggestion or input but ultimately it's their responsibility to finalize
decision. Moreover, executives also play their role for evaluating the performance of other
executives' leader within the company it includes director, vice president and president.
Likewise, it also ensures that organization has also maintained social responsibility along with
minimization of risk. Further, organization can't utilize their resources efficiently without goal,
direction and control (Bellé and Cantarelli, 2017). In addition to this, executives also play their
role as a leader, decision maker, manager, board developer.
The main object is to support their organization operation and administration by
informing and advising their board members. Moreover, it also emphasis on designing,
promotion, marketing and quality of programme in order to survive for a long term. Their role is
played by analysing organization mission and programme that create a positive image in the
market or with the relevant stakeholder (Fehr, Fulmer and Keng‐Highberger, 2020). An
effectively manages of human resource in an organization according to the authorized personnel
policy that conform the current laws and regulations. An executive also finds a way how to cut
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down the cost, improve policies and performance by analysing sales report, financial statement
and general activity. Corporate executives in an organization are also responsible for the
preparation of budget and financial activities. Further, these financial activities are connected
with negotiating and approving of business projects, agreements. In the corporate world, the
company, there are some chairman and chief executive officer work as top raking executive. But
it is depended on organization structure that who will be at top-level to manage and direct all the
activities in company (Lu and et.al., 2017).
Unethical behaviour is any activity at workplace that goes against the prevailing moral
norms of an organization. Moreover, unethical behaviour takes place in different forms and with
multiple target. It can also define that any harmful action that violates the boundaries and moral
norms of community. It can be intentional and unintentional unethical behaviour. In intentional
unethical behaviour, people know that their ethical boundaries are being crossed and it has been
done purposely. On the other side, unintentional unethical behaviour can be defined as people are
not aware that ethical and moral boundaries has been crossed. For example fail to notice
important information while taking corporate decision or lack of knowledge of ethical and
unethical boundaries (Lu and et.al., 2018). Workplace ethics can be defined as set of values,
standard and moral principles which need to be followed by human resources at the workplace.
For example taking responsibility, accountability, effective communication etc. Moreover,
community such as business, departments and company etc. Develop and implement the moral
rules and policies to prevent selfish behaviour in corporate world. Ethical practices at the
workplace helps to achieve successful career and increase the productivity. But on the other side,
unethical behaviour at workplace reduces the productivity this lead to fails in meeting
organization goal. For example, it is very usual for manager to take credit on the behalf of their
team members handwork (Paramita and et.al., 2020). As team members may have brought new
ideas to improve sales. But manager didn't mention their team member name while giving report
to the management. This is an unethical behaviour at work place. One more example, employees
should stay away from offensive language at the workplace. It is very important while dealing
with client. There are some more example like non–office related work, violence, extended
breaks, theft, sexual harassment and corrupt practices etc. In addition to this, manager uses their
position to take undue advantage by nepotism, unrealistic expectation, unpaid overtime and
verbal harassment etc. Unethical behaviour can take place in all the area such as political, social,
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social, professional etc. Due to unethical behaviour, organization lose their clients and valuable
employees which creates uncertainty to achieve goal. An ethical behaviour can take organization
at top on the other side unethical behaviour can get it down.
Abusive behaviour includes violation or aggressive behaviour, controlling someone's
behaviour by getting them down or keeping their money, making threats etc. In addition to this,
abuse can be stated that improper usage of things often to get unfair gain. Abusive behaviour can
take place in the form of misuse of position, power, rights etc. At the work place, corporate
executive may use their power or position to humiliate or threaten their employees. This
behaviour goes against of ethical workplace in which corporate rules and policies are followed.
Moreover, managers of an organization bully their employees for getting promoted or making
clean behaviour in front of management. For example executive use rude or aggressive language
in order to get their work done. Moreover, executive also break company rules and policies by
taking benefit of their position and power. So this behaviour creates hurdle situation for
employees because it makes team demotivated or unwilling to perform their task. Moreover, it
also creates an impact on productivity and sales of an organization. In addition to this, abusive
behaviour is the part of an organization and its management process which creates a
circumstance where employees feel embarrassed by their corporate executive. Due to this, it
creates a feeling of mistrust or low morale (Seuntjens, and et.al., 2019). This situation put direct
impact on employee's performance, company's goal and its productivity. Moreover, corporate
work place is filled with managers and supervisor who use their power and position to mistreat
or disrespect others. Unfortunately, there is no legal protection against the abusive behaviour in
an organization.
Discrimination basically means the act of creating injustices between human being based
on their classes and groups etc. It specially occurs when person or group are mistreated on the
basis of their characteristics. At the work place, it is occurred when employees are mistreated
because of their gender, race, religion, favouritism, disability and sexuality etc. Under the
discrimination practices corporate executive treat their employees differently because of their
characteristic it shows an unethical act in an organization. Moreover, discrimination can take
place through indirect way by applying certain rules and regulation on specific group or
individual. For example an employee who has an experience of 5 year but not get promoted
because of their disability. Corporate executive misuse their power and right not only in terms of
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getting credit on behalf of their employee’s hard work but also by not promoting at higher
position. Further, due to unethical behaviour employees decrease their morale to perform their
task in efficient way. Likewise, company didn't lose only valuable employee but also fails to get
higher productivity. Moreover, organization incur high cost not only in terms of money but also
valuable human resources. Because of losing their old human resources, organization need to
hire new one and further train to attain the same standard as before. This put a direct impact on
sales, client relationship, organization growth along with inside activities of an organization also
get affected such as team work, friendly environment, management-employee’s relationship etc.
Moreover, corporate executive discriminates their employees which influence team member
behaviour. In addition to this, it creates stress, dissatisfaction, reduces organization commitment,
decrease helping behaviour etc. Due to unethical behaviour, employees reduces their
participation and engagement while taking business decision. Moreover, employees who are
facing discrimination have high level of psychological stress and also suffer from health related
problems. It decreases company talent retention ratio which lead to high cost. It put impact on
both employees and work environment.
Lying to employees is an unethical practice which is used by corporate executive in an
organization. Employer lies to their employees in terms of work, salary and working time policy
which reduces employees trust towards the organization. Employees join an organization on the
basis of the information which has been provided by the management. But after a certain period
employee get to know that whatever information is provided to candidates is based on unreliable
sources and misrepresentation. It may cause of fraud. Due to this company lose their image,
respect and relationship with client and suppliers in the market (Hidajat, 2019). Corporate
executive who has high power and authority may lie to their employees in terms of getting high
productivity. Ethical behaviour of employees includes obeying company’s rules and regulation,
communicate effectively, develop professional relationships, take responsibility etc. But if
employers don’t follow ethical behaviour than this lead to reduction in productivity, decrease the
profit, decrease the employee’s morale etc. For example, at the time of hiring new employees,
employer tell a lie about bonus and appraisal that all the employees will get bonus if the achieved
the target. So employees worked hard to meet the target but at the time of providing bonus
employer refused to pay. Due to this, company has suffered from losses because organization not
only lose their valuable employees but also it may cause of decrease in profit (Floridi, 2019).
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Misuse of company time is another crucial unethical practices which is followed by
corporate executives. Employers use power and position to dominate their subordinates by
providing task which is need to be done by itself. Further, executive waste their time in phone,
gossip, break, interval etc. places. Moreover, credit of all the work which has been done by team,
is taken by executives. This put impact on both employees and company's performance. In
addition to this, it influences employee’s morale and company’s productivity. Further, executives
conduct unethical practices by altering time recorded sheet and doing personal business in
company time. Misuse of time reduces the quality of work, profitability and productivity.
Employer takes an advantage of promotion, appraisal and status etc. Employees leave
organization due to high work load and utilization of their efforts at wrong place (Shah &
Alotaibi, 2018). This automatically affect organization performance and it becomes tough for
management to analyse where unethical behaviour has taken place in the company. Due to
unethical behaviour, organization lose their goodwill, public credibility and increase legal issues.
Company can avoid unethical practices by keeping monitor that will check and control misuse of
time by the member of an organization. If executives don’t care about their work, workplace
ethics this automatically put negative impact on employees or subordinates. Moreover, misuse of
time issue can be solved with the help of buddy punching, extending break time etc.
Moreover, management can avoid unethical behaviour with the help of code of conduct
and setting a realistic goal. It is required for any corporate environment to maintain standard
level of conduct and ethical behaviour in order to ensure the success of an entity. Ethical
misconduct in an organization can lead to serious consequences that can cause company’s money
and time. Every organization has its own code of conduct that decide company’s values and
culture. Moreover, it works as a driving force for an organization to while making decision by
top executive. Company need to solve unethical issue right away so that all the other activities
can work smoothly (Vladu, 2019). Moreover, team work helps to survive in the highly
competitive environment. In addition to this, an ethical behaviour at workplace not only improve
organization productivity but also groom individual personality. That helps to attain high esteem
and satisfaction which reduce absenteeism.
Further, Monetary incentive is an important factor that trigger unethical practices in the
company. Moreover, employees are not getting bonuses according to their workload. In some
companies, employees work hard beyond their capacity but not get enough incentive. Further,
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this lead to decrease their motivation towards the work and achieving new target. Money is the
basic need for the people if employees are not getting incentives this automatically impacted on
company’s productivity and quality. Corporate executive usages their position to dominate
company’s employees by paying low salary. For example, employer has allotted extra work after
working hour but not paying extra amount or incentives for that. This put an impact on profit,
relationship with management and supplier, market share etc. Due to this reason, employees
morale get decreased that directly impacted on company's profitability (Tosun, 2020). Moreover,
employees reduces their efforts to improve their quality of work. It reduces long term growth of
an organization.
Deliberate deception is an unethical practice which is followed by corporate executive to
create their goodwill and status in the company. Deliberate deception means take a credit of
someone else handwork. It is very usual in an organization to take credit for their team or
subordinates' handwork. These actions are to be considered as unethical because it exploits the
trust of employees in order to do better for own self. For example a team of an organization has
achieved target but employer take all credit on itself in front of management. This reduces the
employee's morale that directly lead to decrease the productivity of the company. Moreover,
corporate executives create their goodwill and status but on the other side, company or
management loose valuable employees (Paharia, 2020). This increases the cost and time of
hiring, training and development of new employees. Further, give and take relationship create the
best outcome for the company. If corporate executives don't take their employees seriously than
it create misunderstanding. Further, company can't survive for the longer due to
miscommunication between employer and employee. So it is required to define role and
accountability of doing task.
It is a legal obligation for employer and employee not to share confidential data. If
employers leak the confidential data of employees than it comes under unethical practices. This
situation may break the trust of employees in company (Jacob, 2018). Due to this, organization
loses their customer base, reputation in the market, relationship with supplier. Moreover,
company can't get their trust back and completely ruin reputation and goodwill of an
organization. For example employer take an advantage by ruining personal property of their
employees. Due to this reason, employees fails to feel the sense of belongingness in an
organization. It creates an impact on organization performance and trustworthy relationship.
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Hereafter, it becomes hard to get back their heart and mind into the work which leads to reduce
the quality of their work. It put impact not only on company's performance but also on
employees mental and physical health.
Sexual boundaries and harassment is also an unethical behaviour in an organization.
Corporate executives take an advantage of their subordinate by blackmailing and sexual
harassing. Due to high position and power, employees don't complain to management because
people think that no one is their to support and listen their voice. That is why employees keep
mum and suffer all the pain without saying any word. This creates an impact on their
performance and discourage them to achieve next level (Knoll, Schyns and Petersen, 2017). Due
to this reason, company also suffer from huge losses in terms of valuable employee, money, time
etc. It ruins company's image in the market along with the relationship to customer, employees.
Even after, company provide incentives, promotion and transfer but it is not able to get improved
or higher performance from employees. It becomes hurdle for the company to survive for the
long term in the market. Corporate executive uses their position and power to dominate their
employees and force people. For example, employee sexually harassed by corporate executive to
get promotion. Due to this, employee get discourage and reduces the performance which lead to
decrease overall efficiency of the company.
It is required to take necessary action to reduce unethical practices in an organization.
These action can be creating code of conduct, showing employees appreciation, training for
personal development etc. This automatically increases company's profit and build a long term
relationship with suppliers and customers. Further, it is necessary for an entity to define who is
responsible and accountable for the task given. Moreover, management need to work on their
communication chain and feedback which is provided by their employees. With the help of
ethical behaviour, company can spread positivity and retain their valuable employees for long
term. Some time higher level manager use unethical behaviour to save their position, authority,
power etc. Due to this reason, company need to define clearly authority and responsibility at
each and every level of management. This save company's time, resources and cost which helps
to improve profitability. Further, to reduce unethical practice's it is required to adopt necessary
techniques and strategies that helps to improve working environment of the company. A good
and positive working environment helps to increase employees motivation in order to improve
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their productivity. Therefore, it becomes necessary to make rules and policies to reduces
unethical practices.
CONCLUSION
This report has analysed unethical practices take place in an organization in multiple
form. Moreover, corporate executives dominates their subordinates with the help of power and
position. Executives have fear of loosing their position that why support of unethical practices is
to be taken. Further, misuse of company time, sexual harassment, abusive behaviour etc. are to
be used to dominate employees with their power and authority. Due to unethical practices are to
be followed in an organization, it reduces company's productivity and profit along with valuable
employees. Further, a friendly and positive working environment of an organization helps to
achieve success.
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REFERENCES
Books and journal
Ahmad, M. G., Klotz, A. C., and Bolino, M. C. (2020). Can good followers create unethical
leaders? How follower citizenship leads to leader moral licensing and unethical
behavior. Journal of Applied Psychology.
Bellé, N., and Cantarelli, P. (2017). What causes unethical behavior? A meta‐analysis to set an
agenda for public administration research. Public Administration Review. 77(3). 327-339.
Fehr, R., Fulmer, A., and Keng‐Highberger, F. T. (2020). How do employees react to leaders’
unethical behavior? The role of moral disengagement. Personnel Psychology. 73(1). 73-
93.
Floridi, L. (2019). Translating principles into practices of digital ethics: Five risks of being
unethical. Philosophy & Technology. 32(2). 185-193.
Hidajat, T. (2019). Unethical practices peer-to-peer lending in Indonesia. Journal of Financial
Crime.
Jacob, N. T. (2018). Drug promotion practices: A review. British journal of clinical
pharmacology. 84(8). 1659-1667.
Knoll, M., Schyns, B., and Petersen, L. E. (2017). How the influence of unethical leaders on
followers is affected by their implicit followership theories. Journal of Leadership &
Organizational Studies. 24(4). 450-465.
Lu, J. G. and et.al., (2017). The dark side of experiencing job autonomy: Unethical
behavior. Journal of Experimental Social Psychology. 73. 222-234.
Lu, J. G. and et.al., (2018). Polluted morality: Air pollution predicts criminal activity and
unethical behavior. Psychological science. 29(3). 340-355.
Paharia, N. (2020). Who receives credit or blame? The effects of made-to-order production on
responses to unethical and ethical company production practices. Journal of
Marketing. 84(1). 88-104.
Paramita, W. and et.al., (2020). Sharing is (not) caring? The interactive effects of power and
psychological distance on tolerance of unethical behavior. Australasian marketing
journal. 28(3). 42-49.
Seuntjens, T. G. and et.al., (2019). Greedy bastards: Testing the relationship between wanting
more and unethical behavior. Personality and Individual Differences. 138. 147-156.
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Shah, R. K., and Alotaibi, M. (2018). A study of unethical practices in the construction industry
and potential preventive measures. Journal of Advanced College of Engineering and
Management. 3. 55-77.
Tosun, P. (2020). Unethical sales practices in retail banking. International Journal of Bank
Marketing.
Vladu, A. B. (2019). SIGNALING UNETHICAL BEHAVIOR: A PROPOSED COMPOSITE
SCORE FOR ASSESSING CEO'S PROFILE. Eurasian Journal of Economics and
Finance. 7(1). 36-47.
ONLINE
5 Most Common Unethical Behavior in the Workplace. 2021. [Online] Available
through:<https://abatechnologies.com/blog/common-unethical-behaviors-in-the-
workplace>
23 Ethical and Unethical behaviour example at workplace. 2021. [Online] Available
through:<https://www.formpl.us/blog/workplace-ethics>
Unethical behaviour in work palace: Definition, examples, and statistics. 2021. [Online]
Available through:<https://managinglifeatwork.com/unethical-behavior-in-the-
workplace/#Unethical-workplace-behavior-can-be-intentional-and-unintentional>
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