This assessment will cover following questions:
- What kind of unethical practices are lying in the business environment?
- Explain the consequences associated with the neglecting of code of ethics?
“BUSINESS ETHICS” LEVERAGING THE CONSERVATIVE BIAS: A STUDY OF IMPACT OF UNETHICAL PRACTICES ON BUSINESS ENVIRONMENT
Unethical practices in business world are considered as those practices which are not correct or true as individuals morale or profession or industry. Incorporation of these practices might affect business very negatively as due to this company might face situation of negative brand image of company within the industry as well as among its customers. Implementation of unethical practices in business association is directly placing impact over business activities as well as brand image (Mzembe and et. al., 2016). This also places long run impact over the sustainability of the company. The present is based on Sahara India is the private Indian firm which deals in variety of sectors like infrastructure, health care, finance, hospitality, media & entertainment etc. The respective company was founded to be indulged into unethical practice of fund raising in which they have gathered around Rs. 20000 crore from small investors and has not refunded the amount at the time of maturity. SEBI has also asked founder Subrata Roy to return the amount to all investors along with the interest but the there was compliance performed by the company towards the same. The another company chosen for the same project is Satyam Computer, the company has also indulged into unethical practice in terms inflating companies financial data and misleading its shareholders. The owner has also placed his own interest at first rather than the interest of its shareholders.
Both the companies has been criticised for their conducted unethical practice. It has also developed their negative image among customers as due to incorporation of wrong activities these firms had lost their public image (Wu, 2016). The present report has been conducted for developing knowledge of respective companies on unethical practices as well as its associated consequences that could affect performance of the company in the near future. In this regard, investigator have developed suitable research aim, objectives and questions that will be provide them guidance in conducting adequate research that will be suitable for themselves as well as whole business environment. The formulated research aim, objective and questions are described as below:
To analyse the impact of unethical practices on business environment. A study on Sahara India and Satyam Computer.
- To know about the unethical implementations executed by the companies
- To know the impact of the society due to the unethical implementations
- To know, how the unethical practices affect companies’ credibility
- What are the consequences companies are facing due to the unethical implementation?
- Are unethical decisions destroying the company’s credibility and fame?
- Whether, the unsuccessful implementation affects the efficiency of companies long run and employees performance?
Significance of the study
The present research report is highly important for all companies who are performing their business activities in India as well as external world. It will also provide brief idea to business associations about unethical practices and its associated consequences that hinders their performance and also affects their brand image in negative manner. Along with this, the respective study will also provide an overview and idea to business association by which they can avoid unethical practices and also conduct fair practices that will also support them in attaining success in appropriate manner.
Literature review is considered as the scholar paper that provides in depth knowledge to investigator over the chosen topic. This section provides deeper knowledge to readers on research problem which helps them in developing their level of information and also supports them in attaining feasible solution towards the same in rightful manner (Öksüzoğlu-Güven, 2015). With reference to the current investigation, researcher have provided explanation on unethical practices along with its impact over different business practices. The overall information presented in this section is developed by considering perception of different authors. Along with this, the current report will also provide detailed knowledge to investigator that simply provides them an overview about the overall research outcome. Literature review section of the current project is explained below in effective manner:
Consequences companies are facing due to the unethical implementation
According to Stacy (2019), it has been analyzed that in an industry, where company prefers to earn money more and achieve growth rather than ethical practices, then it leads to arise a number of problems. It includes long time sustainability due to negative reputation of business, lack of employee engagement, losses of business credibility and more. A lack of ethical practices will directly impact on employee performance, as under such case, when company focuses on earning money, then workers will also move to get money by avoiding the organisational protocol and procedures. This leads to loss of employee engagement with achievement of corporate goals and employers might also loss respect in them (Hensel and et. al., 2017). Along with this, if public acknowledged with any unethical practices of a company then it may losses its credibility. For example – When unethical practices of Sahara India have been revealed into the public, then they have withdrawn their money from this financial company and move towards other company. Along with this, in many cases of unethical practices, a number of legal issues like large fines, penalties and sometime possibility to jail also have been arisen. Satyam Computer which was counted as one of the fastest growing companies of India, when it was founded to conduct business unethically, then a number of legal penalties have been faced. It includes 30 accounts which are freeze by Citibank, prison of Ramalinga Raju (Founder of Satyam Computer) and more.
Unethical practices leads to loss public credibility:
According to the opinion of Aaron (2016), it has been evaluated that ethical misconduct can lead to arise serious consequences for a company. It includes breakdown of integrity which may cause a millions of dollar penalty, prison and more. This may loss the reputation of business in public that may prove extremely difficult for a company to recover its business image at marketplace. When unethical practices occurs within a corporate setting, then there is a high chance of the firm to be publicized. For example – In case of Sahara India and Satyam Company, scandals of both firm have been publicized, which, in turn leads to lose its credibility. This has also resulted in customers abandoning the sales with business, negative publicity of business, as well as loss of respect in the eyes of stakeholders also. These firms when found guilty to conduct unethical practices then they would be publicly ashamed and scrutinized also. Along with this, companies after found corrupted also loss their license to operate business in future and in such case, reputation of them is damaged forever (Lourenço, Sappleton and Cheng, 2015). Under this case, to achieve the credibility back, companies are required to develop a well-planned marketing and re-branding campaign. Along with this, to improve relations with public relations they have to conduct a number of efforts also. This may lead to high time and millions of dollars amount to rebuild the credibility of business within public.
Unsuccessful implementation affects companies' long run efficiency and employees performance
According to Michael (2019), it has been analyzed that ethics play an important role in corporate long term success and performance of individuals at workplace. When a firm has positive image at marketplace then it boosts the morale of employees to contribute their efforts in its business growth. On contrast, it company found corrupt due to unethical practices then it results into public relations nightmares. Furthermore, operating business in unethical manner, also impact on employees performance because under such case whether to give support to each other for accomplishment of corporate goals, workers are also focused on achievement of their own objectives. Under this condition, firms like Satyam Company and Sahara India when founded corrupted or fail to successfully implementation of ethical practices, faced difficulties in retaining workers for longer period. Along with this, it also put negative impact on workplace environment and individual performance, which resulted to gain their long time commitment to work with company (Baron, Zhao and Miao, 2015). Therefore, it becomes essential for companies in today's world to operate business ethically, in order to remain competitive and sustain business for longer period of time. For this purpose, they need to set realistic goals for their employees to meet successfully, develop policies and ethical practices for promoting ethical behavior and maintain relations with public and company's stakeholders.
RESEARCH DESIGN AND METHODOLOGIES
Research methodology is mainly seen as the theoretical framework which simply states that the how information will be gathered on research topic and how it would be later analyzed effectively for attaining desired research outcome. This section is comprised of various elements that will contribute in the effective execution of the research. These elements are described below in effective manner:
It is mainly termed as the belief towards the overall activities of investigation which states that how information on research problem will be collected, analyzed and used. Research philosophy is mainly of two types that is positivism and interpretivism. In the current study, investigator will make use of interpretivism research philosophy which simply states that human based perception will be adopted by researcher as its core philosophy (Haberstroh and et. al., 2017). It will also allow them in critically evaluating the topic with the inclusion various human perception in the total study.
Types of investigation
This is mainly termed as the effective plan adopted by investigator for conducting research in the systematic manner. The following section also supports investigator in taking effective decision towards research problem. There are mainly three types of investigation like exploratory, descriptive and experimental (Ogunyemi and Laguda, 2016). In the current investigation, researcher will make use of descriptive type for the main purpose of attaining valid outcome towards research problem in effective manner
Data collection method
Data collection methods are mainly of two types that is primary and secondary. Primary method emphasizes on gathering raw data directly from the selected respondents with effective interaction with them. On the other hand, secondary method simply states that desired information is gathered from past investigation which depicts that the information is not new for researcher. In the current investigation, researcher will use both the primary and secondary method for gathering information (Gino, 2015). In the primary method, data collection will be done through questionnaire while on the contrary, in secondary method investigator will focus on opting books, journals, online article etc. for gathering desired information on research topic.
Sampling is termed as the effective method which states that how investigator will select respondents from the overall population (Culiberg and Mihelič, 2017). Sampling methods are mainly of two types that is probabilistic and non probabilistic method. In the current investigation, researcher will adopt non probabilistic sampling method in order to select sample population. Furthermore, in non probabilistic sampling method investigator will later choose random sampling method for selecting respondents with bias free method.
Accessibility issues refers to the issues which are faced by investigator at time of reaching to the information in rightful manner. This directly hampers the deadline of the project as well because it is not easier for investigator to approach every required information in the smoother manner. With reference to the current investigation, it can be said that researcher have mainly faced issues related to gathering information from the company. It is quite difficult for the investigator to gather all the information in easier manner (Kaynak and et. al., 2015). This is because, every company has its own confidential detail which they area not allowed to share with anyone. This made big issue for the researcher as they are not able to gather desired information towards the same. Along with this, it can also be said that researcher could also face issues while approaching to many online sources as it does not provide access to every user at the time of online surfing.
Every investigator is required to emphasizes on the core ethical values at the time of conducting research in rightful manner. At first, investigator is required to emphasize on using all the gathered information for research purpose only. Also, it is essential for the keep the gathered information safely with them as information is confidential and respondents have given it by trusting researcher. Also, it is essential for investigator to complete research effectively within the provided time frame only (Ghani and Shaari, 2016). Along with this, it is also important for investigator to gather secondary information from the authentic sites only in order to obtain authentic and reliable outcome towards their research problem.
Investigator often adopts various analytical method in order to analyze gathered information in rightful manner. With respect to the current investigation, researcher will here make use of quantitative method in order to analyze current information in effective manner (Sigurjonsson and et. al., 2015). It quantitative analysis investigator uses different statistical formulas and numerical methods for analyzing data in order to attain more accurate results.
There are common issues that might be faced by investigator at the time of conducting research. The first limitation identified in current investigation is limited time. This limitation was mainly occurred because there usage of questionnaire for gathering information is time consuming process that ultimately places impact over research outcome. Also, it has been identified that the available funds for the investigation were also limited. This have stopped investigator in attaining research in in-depth manner as they were not able to adopt hi tech tools and advanced technology that could support them in attaining research outcome in quicker manner.
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Timeline is termed as the effective representation of data which states that how much time will be required by investigator for executing research activities in effective manner. With reference to the current investigation, researcher have used Gantt chart for expressing each and every active in the graphical representation method (Nguyen, Mujtaba and Cavico, 2015). Usage of the this chart as a timeline section is helpful for investigator as it aware them about each and every activity which will going to be incorporated by researcher along with its starting and ending time. This simply provides guidance to each team member working in research team executing all of the stated issue effectively within the provided time frame. Gantt chart for the current investigation is stated as below:
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Books and Journals
- Sigurjonsson, T.O. and et. al., 2015. Managers’ views on ethics education in business schools: An empirical study. Journal of Business Ethics, 130(1), pp.1-13.
- Nguyen, L.D., Mujtaba, B.G. and Cavico, F.J., 2015. Business ethics development of working adults: A study in Vietnam. Journal of Asia Business Studies, 9(1), pp.33-53.