Ethical Issues in Business: The Definition: Weak or Weak-Leaning Ethical Culture Seen Misconduct Last 12 Months

One of the greatest challenges for any business owner is navigating ethical issues in business.
Whereas
some ethical issues in business are covered by laws, the requirements around others are more murky. In
these cases, it’s up to the business owner and managers to hold employees accountable for unethical
actions — and, of course, to behave ethically themselves.
Ethical issues in business today are just as widespread as ever, perhaps even more so. For instance, 40
percent of employees believe that their company has a weak or weak-leaning ethical culture. Plus, 30
percent say that they have seen misconduct last 12 months.
Ethical Issues in Business: The Definition
Before going any further, it’s important to understand what we mean by ethical issues in business today.
Ethics is a broad term. At its core, acting ethically in business means building a company around integrity
and trust as well as complying with regulations. However, there are many other issues that fall under
the ethical issues in business definition, including empathy, diversity and acceptance, and carrying out
business in accordance to the company’s values.
Types of Ethical Issues in Business
If you are to run an ethical business, you first need to know what types of issues you can expect to face
and may need to overcome.
1. Discrimination
One of the biggest ethical issues affecting the business world in 2020 is discrimination. In the last few
months, many corporations have come under fire for lacking a diverse workforce, which is often down
to discrimination. However, discrimination can occur at businesses of all sizes. It applies to any action
that causes an employee to receive unequal treatment.
Discrimination is not just unethical; in many cases, it is also illegal. There are statutes to protect
employees from discrimination based on age, gender, race, religion, disability, and more. Nonetheless,
the gender and race pay gaps show that discrimination is still rampant. Other common instances of
discrimination include firing employees when they reach a certain age or giving fewer promotions to
people of ethnic minorities.
2. Harassment
The second major ethical issue businesses face is harassment, which is often related to racism or sexism.
This can come in the form of verbal abuse, sexual abuse, teasing, racial slurs, or bullying. Harassment
can come from anyone in the company, as well as from customers. In particular, it is an ethical issue for
the business if a supervisor is aware of harassment from a client and takes no action to prevent it.
In addition to causing a toxic workplace, harassment can cause employees to leave the company
prematurely — a second reason why some businesses lack diversity. Harassment can have a long-term
impact on employees: psychologically, in terms of earnings, and even impacting a person’s entire career
path.
3. Unethical Accounting
Publicly-traded companies may engage in unethical accounting to appear more profitable than they
actually are. In other cases, an accountant or bookkeeper may change records to skim off the top.
4. Health and Safety
Another type of ethical issue that is often protected by law is health and safety. Companies may decide
to cut corners to reduce costs or perform tasks faster. As well as injuries, failing to take workers’ safety
into account can lead to psychosocial risks (like job insecurity or lack of autonomy), which can cause
work-related stress.
5. Abuse of Leadership Authority
Abuse of power often manifests as harassment or discrimination. However, those in a leadership role
can also use their authority to pressure employees to skip over some aspects of proper procedure to
save time (potentially putting the employee at risk), punish workers who are unable to meet
unreasonable goals, or ask for inappropriate favors.
In addition, abuse of authority can extend beyond the workforce. Managers can use their position to
change reports, give themselves credit for the work of a subordinate, misuse expenses, and accept gifts
from suppliers or clients.
6. Nepotism and Favoritism
Nepotism is when a company hires someone for being a family member. Favoritism occurs when a
manager treats an employee better than other workers for personal reasons.
Not only are nepotism and favoritism unfair, they are also disheartening to employees. Workers often
find they have to work much harder to receive a promotion or other rewards.
7. Privacy
Employees have recently found that the distinction between work life and personal life has become less
clear. This is mainly due to the advances in technology.
For one thing, employers may punish for posts on social media, particularly if they complain about work
conditions or the company as a whole. Employers may even fire workers who post controversial
statements that go against company values.
Another ethical issue surrounds the use of devices belonging to the company. Employers can now
monitor all worker activity on laptops and cellphones. Whereas this is supposed to check that
employees are sticking to work-related activities during the business day, some employers take it
further, tracking keystrokes and reading emails. The question is where to draw the line between
monitoring and spying.
8. Corporate Espionage
The opposite to the above can also happen: workers can misuse company data. An employee may steal
intellectual property or provide a competitor with information about a client. Usually, this is for
monetary purposes, but it can also help an employee secure a position at another firm.

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One of the greatest challenges for any business owner is navigating ethical issues in business.

Ethical Issues in Business: The Definition

Types of Ethical Issues in Business

4. Health and Safety

5. Abuse of Leadership Authority

6. Nepotism and Favoritism

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