What are the consequences of ethical failures?

Unethical behaviour has serious consequences for both individuals and organizations. You can lose your job and reputation, organizations can lose their credibility, general morale and productivity can decline, or the behaviour can result in significant fines and/or financial loss.

What are ethical issues and legal issues?

Ethical issues are not governed by a set of rules and thereby are not punishable by law. Legal issues have a set of rules on which they are based and are punishable by law if those rules are not adhered by.

What are the common ethical issues and problems that affect business firms?

Ethical Issues in Business

  • Harassment and Discrimination in the Workplace.
  • Health and Safety in the Workplace.
  • Whistleblowing or Social Media Rants.
  • Ethics in Accounting Practices.
  • Nondisclosure and Corporate Espionage.
  • Technology and Privacy Practices.

What are the causes of failure in business ethics?

Based on the findings above, the failure of ethics management is caused by multiple factors, namely: lack of management commitment; inadequate leadership; lack of trust within the organization; lack of open, honest and timely means of communication; inexistent programs and policies about the organization’s ethical …

What happens when ethics fails at an organization?

Damage to Company Credibility If a lack of ethics in a business becomes public knowledge, that business loses credibility. While some businesses survive public knowledge of a lack of ethics through reimaging and advertising campaigns, many lose a key customer base.

What are the major costs that businesses incur due to ethical failures?

(1) Increased risk of doing business and the possibility of bankruptcy and severely damaged company brand and image. (2) Decreased productivity. (3) Increased misconduct and conflict internally. (4) Decreased performance levels of employees.

What are the effects of corporate failure?

The possible effects of corporate failure include: 1) Increase in the level of unemployment. 2) Decreasing standard of living. 3) Underutilization of resources. 4) Increase in crime level.

What causes ethical issues?

Ethical behavior is acting in ways that are consistent with how the business world views moral principles and values. The four major factors that can cause ethical problems in the workplace are lack of integrity, organizational relationship problems, conflicts of interest, and misleading advertising.