Introduction

Ethics can be defined as going beyond what is legal and doing what is right, even when no one is
looking. So when we talk about unethical behavior in business, we're talking about actions that
don't conform to the acceptable standards of business operations, failing to do what is right in
every situation.

In some cases, it may be an individual within a business who is unethical in the course of his or
her job and at other times, we're talking about corporate culture, where the whole business is
corrupt from the top down, with disastrous results for society. It's important to realize that what is
unethical may not always be illegal (though sometimes it is both). There are many instances
where businesses may act within the law, but their actions hurt society and are generally
considered to be unethical.

Some recent examples of businesses engaging in unethical practices

Toyota Ignored Safety

In 2010, Toyota ignored information about safety and delayed investigating possible recalls. In
2009, they learned about sticking pedals and faulty brakes; instead of addressing the issue, they
added side airbags. In some cases, Toyota faced accusations of hiding evidence for hundreds of
cases involving death and rollovers, putting their drivers and passengers at risk.

Apple Uses Slave Labor

Apple relies on child slave labor that is working in dangerous conditions, for ten hours each day
while being exposed to cancerous vapors. The conditions at the manufacturing plant Foxconn are
bad enough that they had to install "anti-suicide nets." The workers live in horrible conditions
and experience unreasonable workloads and humiliating discipline. Apple has reduced some of
their work with Foxconn, but they still rely primarily on them. Apple also used Irish tax
loopholes to avoid some taxes.
Monsanto Relies on Toxic Chemicals

Monsanto created Agent Orange, a chemical weapon used in Vietnam that still affects the
population today. Until now, the company works in GMO foods and own the vast majority of
seed patents (more than 95 percent). They sue small farmers aggressively and work to discredit
dissenters by using fake online profiles.

Philip Morris Advertised To Kids

The tobacco giant Philip Morris has been considered unethical for years as a great deal of
advertising from them targets kids. Despite stricter regulations, Philip Morris still prominently
places ads and products in magazines, convenience stores, and delis. They continue to try to
create the image of smokers being cool and are considered the biggest reason for young smokers.

Chevron Spills Toxic Waste

Chevron has attempted to avoid millions of dollars' worth of taxes plus 18 years' worth of
unethical business practices. When they dumped billions of gallons worth of toxic waste into
Ecuadorian rainforest, they were sued and tried to deny their involvement even though there was
plenty of solid evidence. They even faked a letter from Ecuador's ambassador that claimed to
dismiss the lawsuit and worked to discredit the judge, delaying the suit for two years.

DynCorp Harms Locals

DynCorp is a private military contractor that has been paid to fight in the Colombian drug war
since 2001. They have been accused of recklessly endangering the environment and people of the
country as well as torture and murder. They have also been accused of applying large quantities
of herbicides to crops, leading to livestock death, health issues and more than 10,000 deaths.
During the late 90s, Dyncorp was accused of statutory rape and selling children as slaves in
Bosnia while they were supposed to be working.

Wal-Mart Lacks Compassion

Wal-mart is well-known for their unethical business practices concerning employees. They
consistently place profits before the health of their employees. Just one example is Deborah
Shank, who was in a collision involving a semi-trailer in 2000, resulting in permanent brain
damage and confinement to a wheelchair. Years later, they sued her family for medical costs,
leaving Mrs. Shank to rely on Medicaid for around-the-clock care.

Matthias Rath Alternative Treatments for HIV/AIDS Spreads Lies

Matthias Rath is a vitamin entrepreneur who used to be a doctor and is considered to be the most
powerful of all "crackpots." He recommends vitamin pills to cure even serious ailments. In UK
ads, he claimed that 90% of cancer patients die within several months of starting chemo, arguing
that corporations let them die for profit. Yet, he uses his lies to sell an HIV/AIDS "miracle cure",
saying that HIV doesn't cause AIDS and antiretroviral drugs won't work, leading to the spread of
infections in South Africa.

Barrick Gold Corporation Torches Homes

This Toronto gold-mining firm was accused of torching 300 houses in Papua New Guinea to
expand their mining operations. The torching occurred without warning or time to get
possessions and included physical attacks on those who resisted. Other accusations against
Barrick Corporation include manipulating Chilean and Australian land titles and dumping toxic
waste in Tanzania.

Trafigura Harms The Planet

This multinational energy and metal trading company has also been accused of many unethical
business practices. The dispose of toxic byproducts and waste and stopped working with a leased
ship when they found out it would be twenty times as much as the original quote due to the
toxicity of the waste. Instead, they let their ship sit in an African seaport before hiring
Compagnie Tommy, which simply dumped the waste (without any processing) killing around 10
people and getting thousands sick. They have also faced accusations of stealing oil from South
Sudan.

b) Why businesses chose to behave unethically

Pressure can drive people to do things they wouldnt normally do. Pressure to succeed, pressure
to get ahead, pressure to meet deadlines and expectations, pressure from co-workers, bosses,
customers, or vendors to engage in unethical activities or at least look the other way.

Some people make unethical choices because they are not sure about what really is the right
thing to do. Often, ethical problems are complicated, and the proper choice may be far from
obvious.

Of course, some people do not just do something wrong in a weak moment or because they are
not sure about what is the right thing to do. Some people know exactly what they are doing and
why. Self-interest, personal gain, ambition, and downright greed are at the bottom of a lot of
unethical activity in business.

Misguided loyalty is another reason for unethical conduct on the job. People sometimes lie
because they think in doing so they are being loyal to the organization or to their bosses.
Examples of this type of behavior are not hard to find. For example, managers at automobile
companies who hide or falsify information about defects that later cause accidents and kill
people or managers at pharmaceutical companies who hide information about dangerous side
effects of their drugs. No doubt these managers believed they were protecting their employers.
They may well have seen themselves as good, loyal employees.

Then there are those who simply never learned or do not care about ethical values. Since they
have no personal ethical values, they do not have any basis for understanding or applying ethical
standards in business. These people do not think about right and wrong. They only think,
"Whats in it for me?" and "Can I get away with it?"

c) Actions to be taken to solve unethical business practices

Create a code of ethics
Set the tone for behavior in your workplace by creating a code of ethics. A code of ethics
establishes the values that are important to a business and creates a common framework for
understanding the boundaries within the organization.

Establish a protocol
Include in your code of ethics instructions about how to report unethical behavior. For example,
set up an anonymous ethics hotline as well as a clear protocol for reporting, such as requesting a
private meeting with the appropriate manager or supervisor.

Empower employees
Grant staff the know-how to appropriately identify and handle ethics violations. Accomplish this
by implementing ethics-training programs for all new and existing employees to increase the
effectiveness of the code.

Continuously review the code

Keeping the code updated is an important step in keeping a companys ethics top of mind. Each
year, share copies of the code of ethics with every employee or communicate it through a brown
bag lunch and learn or workshop.

Conclusion

Ethical behavior goes beyond the legal requirement placed on a business, as it concerns
discretionary decisions and behavior; In other words, what a business chooses to do, rather than
what it is forced to do. Business ethics are relevant both to the conduct of an individual within an
organization and to the conduct of the organization as a whole.

References:

Dricscoll, Dawn-Marie and Hoffman, W. Michael, (2002), Ethics Matters: How to Implement
Values-Driven Management, page 172
Gioia, D.A. (1999), "Practicability, Paradigms, and Problems in Stakeholder Theorizing,"
Academy of Management Review, 24(2), pp. 228232.

McDaniel, Charlotte, (2004), Organizational Ethics: Research and Ethical Environments, page
39