Unethical Business Practices

Bad press and lawsuits are things that every businessEthical business issues often arise that have little to do
owner fears. Bad press can ruin your reputation, aswith the workplace, but a great deal to do with the
well as your business, and lawsuits can bankrupt you.product that is being sold. It could be that there are
The easiest way to avoid both of these situations is todangers with the product that were only recently
avoid unethical business practices. There are verydiscovered. If you are practicing ethical business, you
easy ways to avoid unethical business practices.will notify the public about these dangers, and
First, adhere to the old standby that honesty is thedepending on the extent of the danger, you may need
best policy. Be honest in all of your business dealings,to recall the product - even if it means losing some
whether it concerns vendors, customers, ormoney, and losing some business in the future. Recall
employees. This also means that you need to usethe product and fix the problem, and you will avoid a
honesty when reporting earnings and expenses, whenloss of your reputation, as well as lawsuits. When you
paying employees and vendors, and when disclosingrecall a product, you get press, but because you took
information to customers.the appropriate ethical action, it isn't considered to be
When you are faced with a complaint, whether thatbad press.
complaint comes from a customer, a vendor, anPlacing blame is another issue. When problems occur, it
employee, or the community, the complaint needs toseems that a businesses first instinct is to look for
be dealt with head on. Burying your head in the sand,someone to blame, instead of taking responsibility for
and hoping that the problem will go away will onlythe problem themselves. Not only is this unethical, it is
serve to make the situation worse, and because youalmost childish in nature, and it does little to instill trust in
are responsible, this isn't the ethical way to handlethe public, in employees, or in vendors. If the issue
problems. Never try to spin your own version of thearose because of a mistake that an employee made,
truth to make the problem not look as bad as it reallydepending on the seriousness of the problem, the
is. This will only damage your reputation in the long run.employee may be fired, but it is unethical for the
When many companies are using unethical businessbusiness to name that employee. In the public's eyes, it
practices, instead of trying to correct the problem, theyis the company that made a mistake, and not an
try to cover it up. They will even go as far as payingemployee.
loads of money on advertising and public relations toAgain, there are many unethical business practices that
try to hide the problems at hand. Again, this is ancrop up in the business world on a day-to-day basis.
unethical business practice, and it should be avoided.For your particular business, it is important to constantly
When mistakes are made, address them clearly,monitor yourself and your employees to ensure that
apologize, do better, and move on. The community asyou are operating above board, and that unethical
a whole will respect you a great deal more for thisbusiness practices are dealt with immediately, in the
than they will if you do nothing, or try to hide a problem,best possible way.
only to be found out later.