Unethical Business Practices

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Unethical Business Practices The financial sector is abuzz with acts of violation of norms to amass wealth in an unethical manner. Following are some of the activities that come under the ambit of unethical practice. * Resorting to dishonesty, trickery or deception. * Distortion of facts to mislead or confuse. * Manipulating people emotionally by exploiting their vulnerabilities. * Greed to amass excessive profit. * Creation of false documents to show increased profits. * Avoiding penalty or compensation for unlawful act. * Lack of transparency and resistance to investigation. * Harming the environment by exceeding the government prescribed norms for pollution. * Invasion of privacy used as leverage, for obtaining personal or professional gains. * Sexual discrimination Preventing Unethical Practices in Organizations Addressing unethical behavior and practices is essential to maintain an ethical climate in an organization. Incorporation of ethical norms and conduct into all levels of the organization can be done in the following ways. * Codes of corporate ethics must be formulated so that employees are aware of the organization's expectations regarding ethical norms and conduct. * An appeal process must be in place so that any unethical practice can be brought into light. * Seminars on business ethics should be conducted for employees. This will help them in understanding the importance of ethical work culture. * Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization. * To promote ethical behavior, performance management system of the organization must be modified to incorporate ethical behavior as a parameter for appraisal and rewards. Business houses that comply with ethics to determine their conduct are shrinking in number. The lack of business

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