Management SystemsRisk Management

How Unethical Behavior Can Cause a Company’s Downfall

More than ever, workers prefer to work for companies they perceive as trustworthy and ethical. The temptation to overlook ethical concerns at work might be strong in today’s challenging business environment. But when a business makes an effort to treat workers fairly and consistently, it can profit from having workers that internalize the high ethical standards of the industry. Your company could be plagued with a wide range of unethical actions. This article at Business 2 Community speaks about the implications of unethical behavior and ways to promote ethical behavior.

Root Cause of Unethical Behaviour

Your workplace might suffer from a wide range of unethical actions. While most managers strive to lead moral businesses, there is a lot of corporate corruption. Some leaders engage in unethical behavior and promote it as a solution to the problem. Employees are much more likely to disregard or violate ethical standards when managers are blind to unethical behavior – which may even be unintentionally encouraged by managers.

Unethical behavior can result from a wide range of circumstances. The following, among others, rank among the top factors:

  • High levels of stress due to demanding workloads
  • No consequences for unethical behavior
  • Financial gain by providing wrong information

Implications of Unethical Behaviour

Leaders that exhibit unethical behavior will lose respect since team members find it difficult to trust them and will not respect their authority. The higher-ups will see a drastic dip in team productivity as they emanate bad qualities and make the team feel demotivated, resulting in poor delivery. Besides, this can also cause managers to lose credibility and hurt their organization’s image. Furthermore, severe unethical behavior can result in an expensive legal battle costing the companies hundreds of millions of dollars.

Encourage Ethical Behavior

Here is how you can encourage ethical behavior:

  • Set attainable objectives for workers.
  • Create guidelines and procedures that encourage moral behavior.
  • Choose team members that have a solid track record of upholding strong work ethics.
  • Provide annual training for strong ethical behavior.
  • Create an office environment that values transparency and communication.
  • Use progress audits to evaluate the performance and behavior of employees in case of misconduct.

The author also provides some examples of poor work ethics.

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