education

1. Reasons for Ethical Problems in
Business
1. Degradation of values and ethics and shift in value
system
 What values are to people, ethics are to businesses.
 Personal values are primarily imbibed from parents,
teachers, relatives & elders & as person grows,
experiences and knowledge refine these values.
 With Degradation of values & ethics there is shift in
value system.

2. 2. Lack of Integrity & truthfulness
in dealings
 Integrity comes with personal values & ethics.
 Personal values of truthfulness, commitment, justice,
honesty, transparency, impartiality etc, guide ethical
behaviour in business.
 Lack of these values result in unethical practices.

3. 3. Belief that ethical behaviour and
successful business is inconsistent
 Too much ethical practices may lead to less profitability.

4. 4. Blinded by self-interest and
greed
 .Many entrepreneurs/CEOs for whom only profitability and
increasing market capitalization are only ways in which they
see companies successful.

5. 5. Insensitive about impact on
environment
 For examples, factories releasing polluted effluents in rivers,
lakes, ponds without treating it properly.

6. 6. Globalization of businesses and
its challenges

7. 7. Innovation and fast changing
technology

8. 8. Poor leadership
 Poor Leadership is sometimes the reason for unethical
practices.
 The progress of an entire business organization is partly
dependent on the type of leaders these organizations have.
 Leaders are tasked with making the decisions for the group,
weighing all matters including ethical considerations.
 Leadership (or the lack of it) can greatly determine if a
business will be run ethically or not.
 Thus, leaders in the business world should be trained in
business ethics so they know exactly what they should do
should dilemmas arise.

9. 9. Employees unethical practice
may be a result of
a. Poor Internal Communication
b. Lack of management support
c. Need to meet goals
d. Pressure to Balance work and family
e. Coercion
f. Conflict of Interest
g. Long working hours
h. No recognition of achievements
i. Company Politics