Why ethical problems

occur in business ?

CREATED BY : PRIYESH N. BHESAJALIYA

S. Y. BBA SEM-4
Introduction:
The main route of the ethical problems in
business might be personal ego, personal
interest and ineffective leadership etc.

Sometimes, employees take advantage of a

business situation for their personal needs as
against company’s interest.
Following are the main reasons as to why
ethical problems occur in a business :
1. LACK OF INTEGRITY:

 In today’s world, we rarely see people with integrity.

Businesses are carried out by human. So it is important for
employees to have complete integrity.

 They should show fairness and honesty in their

dealings with their clients, vendors, customers and other
stake-holders.
2. ORGANIZATIONAL RELATIONSHIP PROBLEMS :
 Companies should have clearly stated goals, objectives and missions. All
employees of the company should be aware of their duties and
responsibilities to achieve company’s goals and objectives.

 If an employee who rebels against its policies, strict action should be

taken against unethical behaviour of employees.

 For example, employee using office vehicles for personal work, top
management executives stealing money from company accounts with the
help of other employees and using it for personal gains etc.
3.ADVERTISING THAT IS FALSE AND MISLEADING :
 Advertising is believed to enhance buyer’s response
to products or services offered. In order to increase
company’s sales and profit, many times company gives
misleading advertisement in the market. It can
mislead consumers.

 Therefore, consumer needs to be educated to judge

various advertisement and then make buying
decisions.
4. COMPETITION :
 In today’s competitive world, every business is
struggling to compete for their share in market.

 Under such pressure and for survival, the

organization may go into unethical practices to earn
profit and try to survive in this fiercely competitive
world.
5. TECHNOLOGICAL INVENTIONS :
 Technological inventions had raised new ethical
issues for business. The agricultural and industrial
revolutions introduced ethical issues such as
possibility of exploiting labour, damaging the
environment massively.

 Information technology has raised issues related to

privacy and intellectual property rights in the business
environment.
 “THANK YOU”
For your Attention