UNETHICAL BEHAVIOUR IN BUSINESS ORGANISATION

ROLL - 6
MBA(IB) 2017-20

What Is Unethical Behavior?

Ethics can be defined as going beyond what is legal and doing what is right, even when no one is looking. So when we
talk about unethical behavior in business, we're talking about actions that don't conform to the acceptable standards of
business operations, failing to do what is right in every situation.
In some cases, it may be an individual within a business who is unethical in the course of his or her job and at other times,
we're talking about corporate culture, where the whole business is corrupt from the top down, with disastrous results for
society. It's important to realize that what is unethical may not always be illegal (though sometimes it is both). There are
many instances where businesses may act within the law, but their actions hurt society and are generally considered to be
unethical.

Tax loopholes are gaps in the tax codes that provide room for individuals or businesses to take wrongful advantage
without technically violating the law. Some businesses exploit tax loopholes to avoid paying taxes in the United States,
while raking in billions in profits. You might wonder why we don't close those loopholes and put an end to it, but the
businesses make political contributions to politicians who work to keep them, so the companies can legally dodge the
taxes.

In my organization evasion of tax was one major unethical business practice. False purchase bills were a regular feature.
Fake entries to inflate expenses and reduce profits were the order of the day.

I in my capacity of internal auditor tried to make the top management aware of the risk of such practices and the long term
drawbacks of such practices. Luckily the top management agreed to my suggestion and focused on tax avoidance rather
than tax evasion.

The four principles of Business Ethics – Non consequential, Character Ethics, Consequential Ethics and Care ethics drove
me in my guidance to the top management.

Thank you.
UNETHICAL BEHAVIOUR IN BUSINESS ORGANISATION

ROLL - 6
MBA(IB) 2017-20