Today’s competitive business environment has made companies use every means to gain profits. They may be unethical but not illegal. The reason is that when talking about ethical practices, you should bear in mind that they refer to doing what is lawful and beyond. An example is doing what is right even if no one is monitoring you. It leads to you experiencing happiness and personal growth. But, unethical practices refer to doing business operations that don’t meet the standard way. Many scenarios can cause companies to fail.
They can be as a result of an individual’s actions within the organization. It could be in the wake of a business deciding to follow shortcuts. This post looks at six examples of companies doing unethical practices for their growth.
When applying for a loan, some banks carry out predatory lending. For instance, they may give you a loan if you have collateral such as a house or a vehicle. It means if you default on your loan, they will still profit by foreclosing your property. By giving you this loan, they may deceive you that you will enjoy a lower interest rate, which may be higher than what they will reveal to you. It means you may end up having problems repaying your loan. On their end, they will have peace of mind that they have your collateral.
Money changes hands when you visit your doctor or dentist. Some doctors, end up recommending expensive procedures that you may not need. They may also fail to tell about the best affordable treatment for your illness. Some do this to collect payments from insurance companies or government agencies.
You should be careful when purchasing a used car. For example, the vendor may not reveal to you that the vehicle was damaged in an accident or during a flood. The reason is that dealers may lie to you about the history of used cars to get more money out the deal. Other manufacturers sell cars that have safety defects, which again they delay recalling.
When purchasing a used car, for example, those damaged in accidents or during floods, you should be careful. The reason is that dealers may lie to you about the history of used cars. Other manufacturers sell cars that have safety defects, which again they delay recalling.
Many individuals and businesses know how to take advantage of tax loopholes. These are gaps in tax codes that they use to avoid paying taxes in their localities. For example, in the United States, they keep these tax loopholes open by making contributions to politicians, who in turn keep them. Bear in mind that they enjoy these tax loopholes without violating the law. The reason is that from the profits they gain, they can hire top lawyers to defend themselves.
Exploiting workers is another common way that businesses choose to increase their profits. These practices are not ethical. These include paying them low wages or outsourcing their manufacturing activities overseas. They know that some foreign countries have little or no laws about minimum wages and forced labor. Others force their workers to work extra hours and fire those who raise complaints.
Applying ethics to your business is your choice. The reason is that you will experience happiness and personal growth. You may decide to be unethical but follow the rules. It may help your business’ development. Please bear in mind that if the authorities find out about your behaviors, you face more than just fines. You may lose the reputation you have built up.