Business ethics violations include creating a hostile environment, theft, lying, mismanagement of funds, wiretapping, and bribery. Violations can lead to public backlash, lawsuits, and even jail time. Some violations are not immediately illegal and require court decisions. Companies often establish their own code of ethics, which can result in termination but not necessarily prosecution. Discrimination, safety violations, poor working conditions, and proprietary information disclosure can lead to lawsuits and monetary damages. Ethical expectations are distributed to prevent violations.
Among the many types of business ethics violations are those that create a hostile business environment, such as intimidation or sexual harassment of workers. Theft, lying and mismanagement of funds are included among the ethical principles that are sometimes broken in business. Violations of many core business ethics, such as wiretapping and bribery, are not only considered bad business conduct, but are also illegal in most jurisdictions.
When companies adhere to a high standard of professional ethics, consumers tend to feel comfortable continuing business with them. When business ethics violations do occur, however, the opposite is typically true, and companies revealed to have broken core business values tend to face public backlash. Also, because disregarding business ethics can be illegal, some companies and corporate executives end up being sued or given jail time for violations. There are, therefore, violations that are simply breaking a previously established corporate code, such as colleagues stealing customers, while other violations are actually criminal offences.
Some violations of business ethics are not so clear-cut that they immediately seem illegal. In these cases, a court is often asked to decide whether or not a violation has occurred. In the early history of music sharing, the issue of the ethics and legality of sharing music files over the internet was one such instance where the actions of sites dedicated to this practice were seen by many as engaging in ethics violations of business and were left to the courts to decide.
It is not uncommon for companies to establish their own code of ethics that employees must adhere to. While ignoring such ethics can be grounds for dismissal, this type is not necessarily illegal. An example of this type of violation might include two employees of the same status within an organization engaging in a consensual romantic relationship while agreeing not to do so in accordance with a company’s ethical standards. Business ethics violations like this often result in the termination of one or both employees, but typically do not require prosecution of any employee.
Violations of corporate ethics such as discrimination, safety violations, poor working conditions and the disclosure of proprietary information often result in a lawsuit against the perpetrator. If successful, monetary damages are usually awarded by a victim to deter further violations. In an effort to ensure that no violations of business ethics occur, ethical expectations are printed and distributed to a company’s executives and employees.
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