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MORAL (concerned with the principles of right and wrong behavior.) ADHERE(believe in and follow the practices of.)
Concensus (a general agreement) , closure (an act or process of closing something)
Cause of unethical behaviour
• Moral principles that govern a person's
behavior or the conducting of an activity.
• The basic concepts and fundamental
principles of decent human conduct.
• Business Ethics is the application of ethical
principles and methods to business.
• It is a specialized study of moral right or wrong
in business decisions.
• It concentrates on moral standards as they
apply to business policies, institutions and
• Lacking moral principles;
• unwilling to adhere to proper rules of
COMMON REASONS FOR UNETHICAL BEHAVIOR
• Pressure can drive people to do things they wouldn’t
• Some people make unethical choices because they are not
sure about what really is the right thing to do.
• Self-interest, personal gain, ambition, and downright greed
are at the bottom of a lot of unethical activity in business.
• Misguided loyalty.
• Then there are those who simply never learned or do
not care about ethical values.
THE ROOT CAUSES OF UNETHICAL BEHAVIOR
• Psychological traps are the root causes of
• Primary Traps (External Stimuli)
• “Obedience to Authority”
• Personality Traps(Internal stimuli)
• “Need for Closure,”
• Defensive Traps(Two internal stimuli: guilt and
• “False Consensus Effect.”
ETHICS OFFICERS ASSOCIATION
• Balancing work and family 52%
• Poor leadership’ 51%
• Poor internal communication 51%
• Lack of management support 48%
• Need to meet goals 46%
• Executive Tactics
• Obedience to Authority
• Need for Closure
• False Consensus Effect
• Deliberate Deception
• Violation of Conscience
• Failure to Honor Commitments
• Unlawful Conduct
• Disregard of Company Policy
• LOSS OF CONFIDENCE
• LOSS OF RESOURCES
• NEW REGULATION
PREVENTING UNETHICAL BEHAVIOUR
Hiring the right employees
Regularly check and audit unethical behaviour
Implement the policies into their practices
Incentives and punishments
Open and transparent business practices