Friday, February 7, 2014
Ethicial and unethical business behaviour
In
this activity, conduct research to find recent examples of ethical and unethical
business behaviour. Research should include ethical business behaviour to
determine good and bad examples to determine why companies engage in both kinds
of behaviour. Identify the position or level within the organization where
unethical or ethical behaviour is committed and any potential victims or
benefactors.
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This is fun, Nestle Canada CEO got in trouble for chocolate price fixing charge. That isn't ethical, read all about it:
ReplyDeletehttp://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/former-nestle-canada-ceo-may-face-chocolate-price-fixing-charge-shortly/article6013249/
More unethical behaviour: Toyota ignores safety concerns to save money and ends up having to recall more than 12 million cars. Toyota knowingly cut costs and put cars on the road that had unintended acceleration. One of the cars got in an accident and Toyota recalled the cars to fix the defects and also faced a lawsuit. It seems that unethical business practices have one thing in common: money. It is okay to cut a few corners to make money right? It is morally wrong and that is why it is unethical. Read more here:
ReplyDeletehttp://theweekinethics.wordpress.com/tag/toyota-recalls/
Ford has had similar lack of ethics in the past. The Ford Explorer had tire and break issues that caused them to catch on fire. Other Ford products like the Taurus station wagon had electrical problems that were well documented and were a result of water dripping on electronic panels. These were design flaws that could have been changed in subsequent years, but were not. Not only did Ford know about the problems they didn't recall vehicles and didn't change product design. Firestone Tires eventually recalled the tires that were involved in the accidents, but there were questions as to the accidents being caused by the design and tire inflation recommendations of Ford. A company with good ethics would have modified design immediately, recalled vehicles or issued a technical bulletin as required to ensure public safety.
DeleteAn Evil Corporation: Halliburton
ReplyDeleteHalliburton has been accused of many unethical business practices including but not limited to:
-Overbilling the US army for food and oil supplies
-Covering up violations of corruption laws and misleading investigators
-Engaging in business transactions with countries they are not authorized to trade with
-Mismanaging waste in Iraq
-Multiple lawsuits from employees as well for sexual harassment, exposure to toxic waste, careless and unsafe practices and many more
It seems that once again it comes down to higher management trading ethics for money. Cutting corners is not a good practice and will lead to more bad than good. Halliburton has violated basically every ethical principle. Halliburton has not acted responsibly, nor does it display citizenship. Halliburton also has not acted honestly, respectfully or with care.
Read more about Halliburton here:
http://gladystucker.wordpress.com/2013/01/02/halliburton-government-sponsored-unethical-dilemmas/
Surprise Surprise, Ever Popular Apple is Guilty of Unethical Business Practices
ReplyDeleteEver wonder why Apple is so profitable? Short answer is sweat shops. Workers are paid pennies to make phones, laptops, and other apple devices.
Apple has also been accused of discrimination when it comes to age, physical appearance and other factors. Apple has also been accused of maltreatment when it comes to their employees. Apple is not kind to the people who spend hours and hours making their devices so that they can make millions of dollars.
Reading about Apple's unethical business practices allows me to happily say that I have a PC.
Read more about Apple's unethical behaviour here:
http://www.channelweb.co.uk/crn-uk/news/2293259/apple-supplier-accused-of-illegal-and-unethical-staff-treatment
I had also chosen Apple as having unethical business practices. Working conditions are so terrible in their Chinese plant that "anti-suicide nets" had to be installed below the windows after 17 employees jumped to their deaths.
Deletehttp://alizul2.blogspot.ca/2013/11/10-most-unethical-business-practices-in.html
Who would have thought, Walmart unethical?
ReplyDeleteWalmart has been sued for having too low of prices and has been notoriously known for putting small stores out of business. The worst is that they do not treat their employees well. Walmart is known for its low wages and poor working conditions. Walmart is also anti-union and is also unfair when it comes to the treatment of their employees.
Read more about Walmart's maltreatment of employees here:
http://www.policymic.com/articles/61373/4-huge-reasons-walmart-s-still-a-horrendous-company-to-work-for
I was the most upset when I read about Walmart because as a mother of 5, I love Walmart's low prices and the fact that I can get everything I need in one place. I guess we know why they can afford to sell their products so low because they don't spend as much as the should on their employees.
I actually worked at wal-mart in Ottawa and I must say based on experience that as an employee I was mistreated and was working like a rat in a dungeon from poor support and work conditions. The negative list can go on, but I want to thank you Raquel for posting this because I was so mistreated their that I started to believe that I was the one who was at fault and it was me who was unable to meet expectations but now the truth set me free byu knowing there are a lot more people like me who suffered under their hands. Thank you Raquel!
DeleteToronto based Corporation, Barrick Corporation has been accused of unethical behaviour. In New Guinea workers were accused of burning down 300 houses in order to make room for their mining operations. Landowners said that they were not even given enough time to gather their possessions and were physically attacked by armed guards if they tried to protest. Barrick Corporation has also been accused of manipulating land titles and dumping toxic waste.
ReplyDeleteBarrick Corporation unethical practices are affecting other countries tremendously. 300 families now have no homes because of them and Tanzania has been affected by high levels of arsenic from toxic waste.
Other countries actually want to sell their shares of this corporation because of the bad name that it is acquiring by its actions in other countries. This is because Barrick Corporation has shown the world that it is not trustworthy or respectful.
Barrick Gold Corporation also manipulated land titles in Australia and Chile to gain access to land it wanted. They also had a hand in an almost 75% shrinkage of glaciers near the Argentina-Chile border.
Deletehttp://www.huffingtonpost.com/2010/01/28/the-least-ethical-compani_n_440073.html
I came across a gold mine of unethical behaviors. The article is titled: Top 10 Unethical Business Actions. The listed companies are:
ReplyDelete1) Congo Free State Genocide
2)Siemens Aiding the Final Solution
3)Dow Chemical/Union Carbide
Rejecting liability of Bhopal Disaster
4)Matthias Rath
Alternative treatments for HIV/AIDS
5)Blackwater
6)Chevron
Hiring military force for use on native peoples
7)Dyncorp
Sex trafficking, reckless chemical usage
8)Thomas Edison/Radio Corporation of America
Attempting a monopoly of patents
9)Trafigura
Dumping Toxic waste on the Ivory Coast and gagging the media
10) Wal-mart
I can safely say after reading of these terrifying actions one saying come to mind and its in confirmation to Raquel's conclusion. The saying is "Money is the root of all evil" and the facts speak louder than words.
The link to the article: http://listverse.com/2011/09/13/top-10-unethical-business-actions/
DeleteThe article:http://pressroom.target.com/news/target-named-one-of-the-world
DeleteTarget Named One of the "World’s Most Ethical Companies"
So what do you know Target now opened in Canada in a location near you was named one of the most ethical companies.
The truth is ethical conduct from companies are what we expect from large business corporations because they represent a part of our community, you can say we have a relationship with these businesses, that's why we keep coming back to buy from them. So, to know that they fit our expectations with real live practical standards we gain as customer because we know we are not used to supply or feed the flame of unfair practices. And the company , which in this case is Target gains the support and continuing operations from loyal customers and a community as a whole.
The article: http://3blmedia.com/News/CSR/GE-Makes-World%E2%80%99s-Most-Ethical-Companies-List-Seven-Straight-Years
ReplyDeleteIn 2013, General Electric is named one of the most ethical businesses, and it made the list seven straight years in a row!
Talk about commitment and positive organizational structure: now that's what makes a company great!
I personally worked for Wal-mart and also personally experienced their mistreatment (to say the least). So I can personally testify that there is nothing more motivating to wake up every morning getting ready to go through traffic and long days work knowing that you are appreciated for the work you provide to your employer and you are a part of a team and also part of the accomplishment in the company.
It's companies like these; Target; and, General Electric that contribute to a positive corporate relationship with the public as a whole.
The public's support and a a bright future on the company's on going concern is the fruit and the reward that good corporations enjoy including all it's members for their efforts on high standards of ethical compliance and fair practices. I would like to say that companies like these make me believe, see, and believe that our world is moving forward to a good and better place.
Kellogg Company another one of the companies that made the most ethical 2013 list
ReplyDeleteThe K values are:
We act with integrity and show respect.
We are all accountable.
We are passionate about our business, our brands and our food.
We have the humility and hunger to learn.
We strive for simplicity.
We love success.
http://newsroom.kelloggcompany.com/2013-03-06-Kellogg-Company-Named-As-One-Of-Worlds-Most-Ethical-Companies-By-Ethisphere-Institute
What a wonderful way to start a day, with an ethical breakfast from Kellogg!
I enjoy a big bowl of Banana Nut Crunch cereal any time of the day they are good, but to know that behind delicious product are hard work and ethics that is what put Kellogg in the top and earned them a Spot in the most ethical companies of 2013.
Since I'm the only boy in ACC0040 Group 2; this company is for you ladies!
ReplyDeleteL'OREAL
Made the list of one of the most ethical business companies in the world. I'll quote a line from the article, "this is the fourth time that L’Oréal has been recognized for promoting the highest of ethical standards". It is the world's largest cosmetics company (Wikipedia). Also, the company is active in the dermatological, tissue engineering and pharmaceutical fields and is the top nanotechnology patent-holder in the United States (Wikipedia).
The article :http://www.loreal.com/who-we-are/awards-recognitions/loreal-is-named-to-ethispheres-2013-worlds-most-ethical-companies-list.aspx
From what I found from this research is that a reason why companies conduct and comply with high ethical standards is because it produces self benefits, like an safe, efficient, productive, and effective working environment. And also produce external benefits that is felt by all the stakeholders and the whole society at large.
It seems that there are definitely pros and cons to ethical business behavior.
ReplyDeletePros include:
Higher sales from increased customer support
Higher employee job satisfaction and retention
Increased investment activity due to ethical investors
Cons include:
Higher expenses due to fairly compensating suppliers
Higher education expenses for corporate ethical training
http://www.tutor2u.net/business/strategy/business-ethics-issues.html
Starbucks is a company that surprised me for its ethical values!
ReplyDeleteThey are environmental stewards with using recycled paper for its cups as well as encouraging customers to bring in their own reusable cups and offers a discount for those that do so.
They also offer health insurance to their employees as well as stock options.
http://www.minyanville.com/sectors/consumer/articles/Good-Business253A-Corporations-with-Great-Ethical/2/16/2013/id/48045?refresh=1
Patagonia is an outdoor clothing company. They are huge environmentalists to the point that they donate 1% of their sales to save the environment organizations. Furthermore, to reduce wastage, they have kindly asked customers to not purchase their products of they don't really need them!!
ReplyDeletehttp://www.minyanville.com/sectors/consumer/articles/Good-Business253A-Corporations-with-Great-Ethical/2/16/2013/id/48045?refresh=1
Google has as its company motto "Don't be evil". It is a huge environmentalist, and regularly tries to reduce its impact on the environment. They also support free speech.
ReplyDeleteEven more impressive is how it treats its employees. They provide access to free health care, free legal advice, and free childcare.
http://www.minyanville.com/sectors/consumer/articles/Good-Business253A-Corporations-with-Great-Ethical/2/16/2013/id/48045?refresh=1
Vancity's (Vancouver City Savings Credit Union) flagship ethical value is its treatment of its employees. They adopted a "living wage policy", ensuring that its employees earn enough that they can live rather than remain at poverty level.
ReplyDeletehttp://www2.macleans.ca/canada-top-50-socially-responsible-corporations-2013/
Blackwater is a private military contractor that has a very serious breach of ethics when ot comes to their employees. If they don't follow a direct order they will be fired, sued, and backpay withheld. If they die or are injured on a mission due to company negligence and try to sue them, the company will withhold backpay and sue you and your family. They ordered their contractors to enter a city in Iraq that the MILITARY deemed too unsafe to allow their soldiers entry, without protection, and the contractors were killed. They couldn't refuse to go because Blackwater would have destroyed them financially. They are basically slaves to the company for as long as they work for Blackwater.
ReplyDeletehttp://listverse.com/2011/09/13/top-10-unethical-business-actions/
Siemens is a German engineering and electronics company that is well-known for making medical equipment that has been around for over 150 years. During WW2 they were a major player in the Nazi regime. So much so that they built factories in Auschwitz. The prisoners worked in the factory in the morning and then would be executed in the Siemen-built gas chamber in the afternoon. To add insult to injury, they are now trying to market gas ovens!
ReplyDeletehttp://listverse.com/2011/09/13/top-10-unethical-business-actions/
Tyco is a security systems company that makes security products, fire protection systems as well as valves and controls. Tyco has had 12 bribery scams in countries such as China, Thailand and Turkey. The payments were usually booked as “commissions” and paid to third parties and were then paid to foreign government officials. Bribing foreign government officials to do business in another country is definitely unethical behaviour. The level of organization where unethical behaviour being committed is the CEO/upper management. The victims are other companies that did not have the chance to do business in that foreign country because Tyco bribed foreign officials to take their business offers instead.
ReplyDeletehttp://blogs.wsj.com/corruption-currents/2012/09/24/tyco-to-pay-26-million-to-resolve-fcpa-allegations/
Bridgehead Coffee is coffee shop chain in Ottawa, Canada. It is an ethical company because it only does fair trade business. It buys its products from small-scale coffee and tea growers in global communities and it also supports many local community activities such as the boys and girls homework club through the launch of its EK#65 Blend to support the Boys and Girls Homework Club of Ottawa. Small-scale farmers and the Ottawa community really benefit from this company’s ethical behaviour.
ReplyDeletehttp://www.bridgehead.ca/pages/community-support
http://www.bgcottawa.org/news/erik-karlsson-bridgehead-partner-to-deliver-ek-65-blend-of-coffee-with-proceeds-going-to-the-bgco