Friends, we are all well aware that the fundamental objective of any organization is to make a profit.
If seen then there are so many organizations that utilize ethical procedures to make money, and many organizations use unethical practices.
In such a case, which business practice a company wants to employ in order to make money is entirely dependent on the company’s management’s philosophy.
However, the truth is that business ethics is not solely dependent on internal organizational factors; it is also dependent on external factors that act on the outside of the organization.
If many businesses have been cut with the approach of strategic management.
According to this management theory, if you want to earn long-term profit from your business, then you have to adopt an ethical practice for your business, with the help of which you can effortlessly retain your customers and make money from your business for a long time.
However, if you engage in unethical business practices, you may earn a lot of money in a short period of time, but you may not be able to earn a profit from your business in the future.
In this article, we are going to cover all the things related to ethical and unethical business practices in detail. If you really want to know more about the same then kindly read this article till the end.
Ethical and Unethical Business Practices
If we talk about ethical business practice, then it means that it is such a practice, by using which you follow all kinds of rules and regulations and remain loyal with your customers and provide them a service in the right way.
Many rules related to Business Ethics have been mentioned in the article given below.
(1) In a manufacturing unit the health and safety norms must be followed as per the law.
(2) Misleading information should be removed from the part of the advertisement campaign.
(3) Child labor is prohibited.
(4) Timely and proper disclosure must be done about the affairs of the company to its shareholders.
(5) Business organizations must have to pay all kinds of taxes at a regular time frame.
When it comes to the business sector in India, the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, Stock and Exchange Board of India (SEBI), the Ministry of Corporate Affairs (MCA), the Enforcement Directorate, and many other government entities establish laws and regulations for any kind of business and every organization are required to follow by them.
In fact, If seen, then there is always a some government body or organisation in a country is certainly working to operate the business functioning in their region, which creates rules for various forms of business and it also makes sure that whether the rules are followed correctly or not.
Although there is also one truth you would like to know about in business ethics, is that despite establishing so many regulations, many corporate firm’s scams are not accessible to the public.
Corporate frauds are illegal, and it begins as an informal business activity and progresses to bigger frauds throughout time.
Unethical Business Practices
Dishonesty and Deception
Misleading information about product and services.
Unfair Business practice to sell the service and products
Creating false balance sheet to show more profits to the share holders
Removing employees without giving them a proper reason.
Applying discriminatin practice on the basis of sex, caste, gender and so on,
Taking advanatges of loopholes in the system, like avoiding tax.
Dumping Industrial waste into the rivers and fertile lands.
Doing Corruption and taking bribery
Advantages of Ethical Business Prctices
People’s trust and the brand value increases.
Increase in Production
Increases in business opportunities
Trouble free working environment due to less legal issues to deal with it.
It creates good team work amongst the employees
Asset protection and assurance is ensured.
Decision making and implementation is easy.
Overall trouble free and positive environment to work and scale up the organization to the greater heights.
Disadvantages of Ethical Business Practices
Increased legal working cost
Increases misconduct and internal conflict
Brand value of the company decreases
Difficulty in retaining talented employees
stock prices will come down
Customers may losses faith in company’s service and products.
Very low rate of the client retention
Decreased in earning over the time.
Employees morale will gone down with this kind of practice.