Introduction
In the modern world characterized by fierce competition, organizations can hardly afford to be unethical or behave unethically.
Main body
The unethical behavior of an organization may take different forms and be manifested in different areas. For example, companies may try to manipulate customers’ knowledge and preferences. The provision of incomplete or erroneous data is another example of unethical conduct (Duane Hansen et al., 2016). In 2008, this kind of behavior contributed to the onset of a global financial crisis. The cases of such global leaders as Apple or Nike, as well as other companies, show that reputational losses may lead to financial losses (Ebert & Griffin, 2017). The outcomes of companies’ human resources policies often become a topic of heated debate. The environmental input of businesses is another area of contemporary customers’ concerns.
People are willing to buy from and use the services of the organizations that are corporate citizens (Park et al., 2017). Important shifts in customers’ needs and preferences, as well as marketing, took place in the 1980s when people started more concerned with social aspects of the products they buy and consume (Ebert & Griffin, 2017). The focus on the environment and human resources practices can serve as bright illustrations of these changes. Customers want to buy from companies whose environmental input is minimized while social responsibility is constantly increasing (Park et al., 2017). People want to feel they are making this world better through their daily activities such as shopping. Clearly, authorities are also important actors as they can initiate legal actions if some regulations are not followed.
In addition to such external factors as customers’ preferences, the performance of companies depends on their workforce as well. Employees also pay substantial attention to the ethical aspect and perform better if they feel that their leaders and organizations behave ethically (Saha et al., 2019). Employees are motivated to perform better if their higher-level needs are met. Employees, similar to customers, want to feel their contribution to a rightful endeavor that makes the world better. In many cases, employees are also guided by their interests and professional goals, but modern leaders tend to create an organizational culture based on ethical principles. People are encouraged to behave in specific ways, which results in favorable outcomes for the organization that often receives a competitive advantage.
Some still believe that some instances of unethical behavior, especially if they do not lead to major adverse effects or if they are concealed, can be acceptable and can hardly influence a company’s success. However, the modern world is characterized by the unprecedented availability of information. Diverse groups may make any kind of data available to millions of people within seconds with the help of the Internet. Social media serve as an important communication channel that helps people stay in touch and share information. Therefore, any type of unethical conduct is likely to become a topic of discussion within a short period of time. Such discussions may have meaningful effects on the development of an organization. People may simply stop buying from a company, which will lead to financial losses or even bankruptcy.
Conclusion
In conclusion, it is important to state that organizations cannot afford to behave unethically in the modern world. Their success depends on the way they manage to prove that they are responsible corporate citizens contributing to the development of communities. External (customers or authorities) and internal (employees) forces may have an impact, so companies should pay attention to these stakeholders. Ethical behavior ensures sustainable development of organizations, which has become a major trend at the end of the twentieth century.
Reference List
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