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Business Finance

Question Description

Ethical behavior is a corporate issue that affects the company’s bottom line. How do ethical issues impact organizations and operations? Include an example seen in the workplace or in the news.

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Explanation & Answer

Ethical behavior

The term “Ethics” is widely used in today’s organizations. But sometimes, employees are not aware in actually what is ethics? Ethics is a moral philosophy of a company which is circulated through code of ethics. Ethical behavior means applying the principles of honesty and fairness that is the most important for the organization. There is no doubt that ethical behavior of the company direct affects the company’s bottom line. In fact, the reputation of the company is directly linked with its bottom line employees. The ethics of the company affects the environment and the operations of the business. For example – if there is high turnover of the employees, it will increase the cost of the hiring, selection and training and development. If the employees are not good with the customers, it will damage the good reputation of the company. If the employees are not much quality conscious and will not focus on reducing the wastage and time, it unnecessary increases the cost of the operations. Besides all these examples, unethical behavior of the employees promotes the unethical environment and culture that inspire others to involve in the unfair and illegal activities in the company. In day to day life, we observe that the employees either miss use the property of the business though use it inefficiently or miss use it for their personal use. This is the very common example of unethical behavior at the workplace. 

Unefu I (108)
University of Maryland

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