Tdemars_CurrentEthicalIssues_111723
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Current Ethical Issues
Tiffany DeMars
Rasmussen University
B293/MAN2062: Business Ethics
Barbara Henteges
11/19/2023
Current Ethical Issues
The topic of unethical business practices is often goes undiscussed and undiscovered.
Roughly 23% of employees have experienced or witnessed unethical behavior. (Ivcevic, Menges,
& Miller, 2020). That is roughly one in four people that feel pressured to do things that they
know are unquestionably wrong. Unethical business practices can be anything from false
advertisement to bribery. I will be discussing misleading product information, unfair
competition, employee mistreatment, financial statement fraud and environmental harm.
False Advertising Product Information
False advertising is typically related to price, quality, and/or purpose. The seller or
manufacturer gives you incorrect information about the product or service being purchased.
There are four different types of false advertising; misleading claims, false testimonials, hidden
fees or charges and lastly, bait-and-switch tactics. Misleading claims are exactly that, they
promote a product or service with incorrect or exaggerated information. False testimonials
occur when a business makes up positive evaluations or statements to give the impression
consumers are extremely satisfied with said product or service. Hidden fees or charges are
hidden in word jargon and typically in the “fine print”. Lastly, with bait-and-switch tactics usually
advertise at a lower priced item, but try to sell a more expensive and different product or
service.
Large corporations are typically the perpetrators of false advertising although it is not
limited to size of the company. False or misleading information being said or placed on products
can have serious negative effects for both the business and the consumer. It not only damages
trust from the consumer and diminishes brand loyalty but also exposes the businesses to legal
Current Ethical Issues
2
and financial risks. (Camacho, 2023). The easiest way to avoid false advertising is to guarantee
some form of evidence or support of claims can be provided. This could be ingredients list,
purchases lists, functionality demonstrations, etc.
Unfair Competition
By definition this is conduct by a business which gains or seeks to gain advantage over its
rivals through misleading, deceptive, dishonest, fraudulent, coercive or unconscionable conduct
in trade or commerce. (Sims, n.d.) Unfair competition is an umbrella term. This can be anything
from trademark infringement (borrowing an idea without permission) to trade libel (spreading
harmful rumors to hurt a business’s reputation). For larger corporations this may not be a major
issue, however it can have devastating consequences for small business owners and employees.
Remedying tools to prevent this such as court issued injunctions. These are essentially like a
legal “stop sign”.
(2023)
Employee Mistreatment
This can consist of spoken and written statements, as well as expressions and gestures.
This can be face-to-face or via electronic means. (Spector, 2019) Mistreatment can be acts that
attack, demean, or insult people at work, it can also be both sexual and non-sexual in nature.
From personal experience employee mistreatment effects, the business by causing a revolving
door effect. As well as employees, as they tend not to stick around very long if they are being
treated poorly or being harassed.
Employee mistreatment can be committed by anyone within the company but most
often comes from a higher position within the company. This could be a manager, supervisor, or
owner, it could also be an employee in the same or a similar position. I believe the best way to
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resolve most mistreatment is via the open-door policy. If this policy is ineffective due to
mistreatment being by HR or someone higher than HR such as the owner then the best bet
would be to report the employer to the Equal Employment Opportunity Commission (EEOC).
Financial Statement fraud.
This form of fraud is the deliberate alteration of financial
statements to deceive users of financial documents and create a positive picture of the
company's financial situation, performance and cash flows. Some of the biggest accounting
frauds in history were found to be done by Enron, WorldCom, Parmalat and Tyco. Companies
manipulate financial statements through various methods, including recording fictitious
revenues, understating expenses, overvaluing assets, using improper accounting practices,
engaging in fraudulent transactions, and falsifying documentation. Typically, this is committed
by people who have access to the financial documents. The easiest way to prevent financial
statement fraud is to have a system of strong internal controls that enforces the segregation of
duties so that no single employee has authorization to view and alter all financial data. (Beaver,
2022)
Environmental Harm
can be anything from pollution and deforestation. To overcome
environmental degradation, companies must adopt sustainable business practices, such as
reducing waste, using renewable energy sources, and conserving resources.
(Fadero, 2023) To
overcome ecological degradation, companies must adopt maintainable business practices, such as
reducing waste, using renewable energy sources, and conserving resources. Engaging in community
outreach and allowing for feedback on their practices would also benefit companies that have had poor
ethics regarding environmental harm.
Current Ethical Issues
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References
Ivcevic, Z., Menges, J. I., & Miller, A. (2020, March 20).
How Common Is Unethical Behavior in
U.S. Organizations?
Harvard Business Review. Retrieved November 17, 2023, from
https://hbr.org/2020/03/how-common-is-unethical-behavior-in-u-s-organizations
Grossman, M., Esq., & Berger, C. J., Esq. (n.d.).
How Common Is Unethical Behavior in U.S.
Organizations?
New York City Bar Legal Referral Service. Retrieved November 17, 2023,
from
https://www.nycbar.org/get-legal-help/article/consumer-law/false-misleading-
advertising
Camacho, A. M. (2023, July 6).
Unveiling false advertising and its impact on consumers
.
Outsource Accelerator. Retrieved November 18, 2023, from
https://www.outsourceaccelerator.com/articles/false-advertising
Sims, R. (n.d.).
Unfair competition
. Concurrences. Retrieved November 18, 2023, from
https://www.concurrences.com/en/dictionary/unfair-competition#:~:text=Author
%20Definition-,Definition,conduct%20in%20trade%20or%20commerce
(n.d.).
Examples of Unfair Competition Against Small Businesses
. HR.org Legal Resources.
Retrieved November 18, 2023, from
https://www.hg.org/legal-articles/examples-of-
unfair-competition-against-small-businesses-46770
Spector, P. E. (2019, April 25).
Employee Mistreatment
. Paul Spector. Retrieved November 18,
2023, from
https://paulspector.com/employee-mistreatment/#:~:text=What%20Is
%20Employee%20Mistreatment%3F,e%2Dmail%20or%20social%20media
Beaver, S. (2022, April 7).
Financial statement fraud: Detection & prevention
. Oracle NetSuite.
https://www.netsuite.com/portal/resource/articles/accounting/financial-statement-
fraud.shtml
Fadero, C. (2023, February 13).
Identifying and overcoming unethical business practices in the
21st century.
LinkedIn.
https://www.linkedin.com/pulse/identifying-overcoming-unethical-
business-practices-21st-chris-fadero#:~:text=Unethical%20businesses%20often%20engage
%20in,energy%20sources%2C%20and%20conserving%20resources
Current Ethical Issues
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