Each individual has a moral belief in which they live by, however, in business many unethical business transactions constantly occur. When it comes to unethical behavior In the workplace, many will argue on what Is considered ethical and unethical. One person may argue that taking office supplies home from the office is not considered unethical. After all, who would miss a dollar number two pencils?
Others may view taking office supplies home as stealing therefore, making it 100% unethical behavior. Example of unethical research behavior When you think about unethical practices as It pertains to its effects on business many factors come to mind such as: misrepresentation of financial records for the sake of personal gain, overstating revenue, Improper use of funds, overstating the value of corporate assets, and not reporting the correct data for the organization’s liabilities. In recent years, unethical behavior in the workplace has been brought to eight due to insider trading, bribery, kickbacks and recently discrimination.
When the Iron scandal became public opened the eyes of many government officials and caused them to dig deeper on the way businesses where practicing ethics within the workplace. Several reports were filed regarding Irregular accounting procedures throughout the sass. However, authorities did not have enough evidence to prove the information as being valid. In order for officials to act they had to conduct additional research regarding the business which that included interviews and searching past and present numbers.
The Injured Parties In November 2001 Enron was at the center of attention as undergoing the largest bankruptcy in history by corporations. Enron executives were charged and convicted of unethical practices such as bank fraud, making false statements to banks and auditors, securities fraud, wire fraud, money laundering, conspiracy, and insider trading. Those who suffered from Iron executives careless acts were the employees and shareholders who lost millions of dollars along with thousands of employees who lost their jobs and retirement fund.
Many employees were unsuccessful at finding work after the bust and eventually lost their homes and savings. Unethical Behavior vs… Organizations, Individuals and Society Following the public display of Enron’s scandal, in December 2001 -April 2002, the United States Senate Committee on Banking, Housing, and urban Affairs and the House Committee on The hearing and the unethical practices that were brought to light help birth the Serbians-Solely Act on July 30, 2002.
The Serbians-Solely Act initiated the preparation of audit reports – which restrict public accounting companies from providing non- editing services when they perform audits, restricting executives from being required to sign off on financial reports, and relinquishment of executive’s bonuses during financial restatements. It expanded financial disclosure of organizations relationships with unconsolidated entities. June 2002, the NY Stock Exchange announced a new governance proposal.
This proposal included that all companies must have a majority of independent directors, the independent directors must comply with an elaborate definition of independent directors, and the compensation omitted, nominating committee, and audit committee must consist of independent directors. Having these two regulations helps to protect individual shareholders, employees, and the organization. The organization must follow these regulations which will protect them from falling into the same shadow as Iron.
Employees and shareholders are protected from being mistreated and abused by corporations and help with securing their investments. Can Unethical behavior be avoided or resolved? My personal opinion is this: Greed is unstoppable. Acts such as the Serbians-Solely Act and the strict regulations laid out by the New York Stock Exchange can be helpful; I think it is important for business owners to hold their employees accountable when they act unethically.
For instance, informing new employees of the rules during new hire orientation. When an employee acts unethically, it’s necessary to refer to the code of conduct and take the necessary steps to warn or terminate. Show employees they are appreciated, when you have loyal employees who know that the organization values their hard work they put into accomplishing daily tasks is less keel to act unethically. An organization should show appreciation to their employees for excellent work on a regular basis to encourage loyalty.
Finally, when recruiting for the right candidate, to help prevent unethical behavior, employers should look beyond educations and experience. They should consider a candidate’s values to ensure they align with the organizations culture. Conclusion Each individual has a moral faith in which they live by, however, in business many unethical business situations will be hard to tame. Unethical behavior in the oracle is going to forever be an issue in the workplace as everyone has their own view and belief about what’s right and what’s wrong.
It can be minimized if the company takes the necessary steps to make it an important factor within the company.