Question

In today’s social and business environments, some organizations only “talk the talk” regarding ethics and ethical conduct rather than “walk” the ethical organizational path.

• In what ways can ethical and unethical behaviors and actions impact a company or business? Be specific.

Answer 1

Considering today’s business environment , every individual’s action inside an organization influences everyone in the organization. Likewise, when an employee behaves and perform ethical actions then it supports the whole organization. Top management is always responsible for the ethical activities within the organization. But sometimes a few employees in the upper levels of the organization act unethically. Hence, it becomes important for business to be cautious about the ethical acts within their organization. When wrong individuals are promoted then it send a negative vibes stating unethical messages. For example, corporate social responsibility (CSR) indicates the business practices for the benefit of the society apart from the organization. Hence, CSR is the essential part of the business ethics which should be followed by each and every organization. It involves everyone to giving back to the society and influence everyone at the broader scale. Whereas, unethical act endangers the future of the organization, negative impact on the business environment and risks toward the welfare of society. Some of the negative effects of the same may result in inadequate community development, risk towards public goodwill within a business environment, short term gains but long term loss (untenable behavior) and irresponsibility by everyone in the business.