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Week 3- Examples of Immoral behaviour

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Examples of Immoral Business Behaviour
Immoral Business
Behaviour
Bribery
Cases
Bribed by grey goods traders, the staff of a food products shop violated the
rule that each customer could only buy two tins of powdered baby formula,
and sold them all the powdered formula. The result was that the locals were
unable to buy powder formula they needed.
Coercion
In a beauty and fitness shop, a customer had her HKID card taken by the staff
under excuse, then was pressured by four other staff members and not
allowed to leave until she signed $40,000 worth of fitness package that she
had no real need for.
Fraud
A certain Mainlander went to an electronics goods store to buy a camera. The
store staff sold him a $20,000 lens with anti-blur function under false
pretences. He did not realize that he was conned until he returned to the
hotel.
Thievery
When a certain customer was undergoing treatment in a spa house, members
of staff asked her to pay $3,000 for the treatment. The staff took her ATM
card, asked her to input the passcode in front of them, then withdrew $20,000
when she was unaware.
Unfairness &
A small grocery store was selling instant noodles at below-market pricing. The
Discrimination
large supermarkets filed a complaint with the supplier, which then requested
the grocery store to raise the pricing. The grocery store rejected the request
and was cut off by the supplier.
Table - Examples of immoral business behavior
Behaviour
Bribery
Influence on the decision-maker
 Unjustified personal gain
 Choices that influence decisions
Coercion


Fraud

Thievery

Unfairness &
Discrimination


Fear
Unwillingly choose services or
products
Changing the choice of decisionmaking
Loss of resources
Buying inferior services
Selling price higher than market
price
Table - The influence of unethical business behaviour
Consequence of the action
 Choices that influence
decisions

service quality
 Unfairness toward other
competitors
 Undermine the rule of law
 Cost increase
 Lowering of service quality

Lowering of satisfaction

Cost increase or
disappearance of
product/services

lowered demand
Source: David J. Fritzsche (2004) Business Ethics: A Global and Managerial Perspective. NY: McGraw-Hill
Education
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