The Cost of

Unethical Behavior
Some Maintain That There Are No
Costs To Unethical Behavior

1. They will fail to see the merit in the
positive implications of the issue
2. They won’t see the cost associated
with unethical practices.
 
one reason for that view is that
the outcomes of shady dealings
are not all negative.
 some business people are
successfully at making money
that way.
 increasing number of managers are
becoming aware that the more
companies or individuals are “ getting

caught “ that politician are resigning, or
that even outstanding athletes are being
sidelined because of questionable
practices.

 Many business people have become

“Rich Quick” on the gullibility or
dreams of other people.
 But Are There No Cost
Whatsoever?

 There are costs associated with success through
deception.
 imagine investing precious resources to ensure that your
questionable practices don’t become too public, that you
don’t get caught, or that you don’t become prey to
blackmailers.
 it must be wearying to swear people to secrecy.
 It must be tiresome to hope that Bureau of Internal
Revenue won’t notice, that customers overlooked the
evil fruit, the slightly damaged products or the inflated
prices.
 
“ A Life of Deception
Can Hardly Be The
Preferred Option”.
 Costs to Being Unethical in
Business are Significant

Ethics may appear to be a subject that is soft and intangible.
Reputation and Career may be ruined if ethics is ignored of
the following:
1. Loss of Trust –Notice how the loss of that trust;
• might lead to loss confidentiality
• To censored communication
• To poor self-stem
• To lack of commitment
• To diminished loyalty and ultimately
 5 Things You Can’t
Recover in Life

1.A stone after its thrown
2.A word after it’s said
3.Time after its gone
4.Trust after its lost and
5.An occasion after its missed
Trust doesn’t come with

a refill. Once its gone,
you probably wont get it
back, & if you do; it will
never be the same!&
that’s a fact!
 2. Loss of one’s good
name

can quickly become infamous
for double-dealing
For promises not kept off for
employing other shoddy
practices.
 Some Internal
Consequences Once Trust is

Lost
 Less effective teamwork
Loss of confidentiality
Censored communication
Loss of self- esteem
Lack of commitment
Decline loyalty
Resignation
 Trust Matter

 it describes a steady
decline in an individual’s
ability to perform, one that
offers little hope of
redemption.
 
The Cost of Unethical
Behavior to an
Organizational Itself
There is no doubt that major corporation or
business moguls of the world have paid
mightily when their criminal conduct was
revealed. 
Some cases are:
• Other my have been imprisoned
• Others may have chosen suicide
• Rather than face the public humiliation
that such scrutiny leads
• Others have forfeited their careers.
• Families of such individuals have suffered
too.
 Damage to a business name or the
suggestion may:
• lead to a fall- off
sales
• Referral may opt to do business
elsewhere
• Orders may decline
 Question will be asked:
1. Is the product or service untrustworthy?

2. Has there been mishandling of public monies
and public trust?
3. Does the product do what the consumer
expects it to do or is it going to cause injury?
4. Might the product carry a warning on the
label?
5. Did the company know the product was
flawed or defective before it way ordered or
purchased?
 What Have Companies
Done to Redeem Their Good

Names?
The add campaigns that apologize
That explain the reasons
 press conferences that justify
Redefined package or product
To spend significant monies on new
layouts, designs or public relation
firms.
 Creating an Ethical
Working Environment

There is a great deal for yourself, your staff,
your organization, and stakeholders by
planning and implementing the following eight
steps:
1. Make the decision to commit to ethics –
requires that one makes a decision that ethics
is essential to your firms success and your
personal success in business.
2. Recognize that you are a role model by definition, by your actions
and by your values.
-a. Role Model by Definition- it would be difficult to
you as a manager, particularly if you are new to the
position. 
b. Role model by Actions-Management is about
decision making. Specifically, in your capacity:
 You will find that you have the responsibility for
evaluating other people’s work.
 You will be selecting people to handle particular projects
based on your evaluation of their skills and abilities.
 You will be identifying individuals for promotion, for
awards, for special task forces or teams.
 You will be granting or denying special requests, such as
for an afternoon off to see the doctor.
You will identifying who should take a
leadership role at a team meeting.
 someone of current
You will be relieving
duties to serve on a select committee.
You will be considering a staff member
for specialized training.
 c. Role Model by Your
Values

-Accepting that you are a role
model, not only because of your
choice of clothing and your office
layout but also because of your
values.
3. Assume the Responsibility
for Instilling ethical
 Behavior
The responsibility for setting
ethical standards starts at the
top.
4. Determine what you
consider being ethical

practice
 you should analyze what
you believe is an acceptable
practice and what is
unacceptable practice in
business.
 5. Articulate Your
Values

 you also know what you
believe is acceptable practice
in business.
 6. Train Your Staff

The process of creating an
ethical working environment
requires some training.
 7. Encourage open
communication

You have to foster communication
among your staff.
 8. Be Consistent

The final step in creating an
ethical working environment
is to ensure that people are
open and consistent.

