Abstract
This paper reviewed the literature on ethics, ethical theories, ethical principles; as well as the implications of unethical practices in organizations. The study revealed that unethical business practices have devastating consequences on organizations; since they result in poor corporate image, financial losses; market failures and sometimes complete corporate collapse. It was further observed that corruption, bad leadership, poor corporate governance, conflict of interest, lack of accountability, inadequate CSR, abusive and intimating behaviors among others are common in most organizations. The paper concludes that it is beneficial and in the enlightened self -interest of organizations to adopt good ethical practices. The paper also recommends that managers’ should ensure that ethical standards are crafted in their business philosophy and strategic intents in order to build and maintain a good corporate image.
Highlights
“Driving shareholder wealth at the expense of everything else will not create a company that’s built to last.” — Paul Polman, CEO of Unilever, Harvard Business Review (May 2012)
This paper reviewed the literature on ethics, ethical theories, ethical principles; as well as the implications of unethical practices in organizations
The study revealed that unethical business practices have devastating consequences on organizations; since they result in poor corporate image, financial losses; market failures and sometimes complete corporate collapse
Summary
“Driving shareholder wealth at the expense of everything else will not create a company that’s built to last.” — Paul Polman, CEO of Unilever, Harvard Business Review (May 2012). There has been an increased interest and concerns regarding basic moral leadership among regulators, social groups and supervisors with reference to the negative records of some businesses that were linked with unethical practices and attracted criticisms (Maheshwari & Ganesh, 2006). According to Maheshwari and Ganesh (2006), ethics is the standard of behaviors in an organization, and its set of values usually complies with social norms and contributes to the existence of the community. Most organizations are highly concerned with employees exhibiting unethical behavior due to its negative consequences, including declines in organizational performance, financial losses, reputational damage, safety concerns, and loss of customers (Askew, Beisler & Keel, 2015). The author provides new means for advancing ethical behaviors in the contemporary organization
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