Student name - C.Buddhika Pahindra Student ID - 465122138 Submission date – 01/22/2021 Question – “Unethical companies might enjoy short team profits but will collapse in the longer run”. Evaluate the above statement and justify with suitable examples. When it comes to business world being an ethical company plays an important role. An ethical company can be defined as that company going beyond what is legal and always doing what is right, even when no one is looking. But all companies are not ethical with this competitive business world. There are companies that are unethical, and their actions don't keep up to the standards of business operations, and always failing to do what is right in every situation. The unethical companies breach the standards and business code of conduct and these companies’ behaviors are morally wrong and lead to the mistreatment of customers, suppliers, employees, organization, nature, and the whole environment. These companies fail to do the right thing and they do not focus on correcting it but keep following the same unethical practices. Companies that are unethical enjoy short term profits by taking shortcuts that are easier, faster, or more profitable at the time. These companies use manipulation and exploitation of their valuable laborers, Exploiting employees and they follow unfair competitive practice by bending the company rules and regulations to earn more benefits and profits than their competitors or peers, also they show lack of transparency to cover up their unethical practices, avoid paying taxes, use unethical behaviors towards to their suppliers, employees, customers, and the environment, follow delusive sales practices so they can enjoy more profits. However, these unethical companies cannot run in the long run as in the longer run when these companies’ behaviors take place continually in a corporate setting there's a high possibility that it will be publicized and it can cause the company to lose its trustworthiness, resulting in customers throw over sales with the company, employees make internal complications, lack of motivation towards production and not holding respect for the company anymore. And in the longer run these unethical companies collapse. Below listed companies are few examples of Unethical Business Practices and collapsing in the longer run due to being an unethical company. 1. United Airlines United Airlines is still ill-famed for breaching their ethical behaviors after security guards vigorously dragged off a passenger named David Dao from their overbooked flight 3411 in 2017, many consumers were disappointed with how the company handled the situation and how the united employees and airport security violate the protocols in unethical way by harming the passenger and it clearly showed a lot about the behavior of United Airlines. Additionally, the apology and statement issued from the CEO seemed emotionless to many customers due to it seemed to back up the airline but didn’t really express their guilt neither regret about the situation happened where consumers felt that they do not come or treat as first priority with United Airline and the airline follow unethical behaviors and this situation led many customers to cut up their United Airline loyalty cards, customer tend to cancel flights, or book with another good airline and people still talk about this incident and use it as an example for reasons to avoid the United Airlines, mentioning United Airlines ethics aren't keeping up with the standards. 2. Volkswagen Many people are familiar with Volkswagen unethical practice that the company installed software that manipulated emissions readings to make their brand of card appear as if they were environmentally friendly which was clearly a unethical act. A company like Volkswagen’s ruined their good name regularly in the media in the last four years due to their bad decision-making and irresponsibility toward the practices. This is one of the best examples that unethical behaviors can bring more profits only for a short period time but not in the longer run. Once the unethical practices publicized it will ruin company’s good name and all future benefits as well which will cause to collapse of the company in a very short period due to their unethical practices. Overall, whether it’s a small or large company, any organization should keep up with the standards and do the right thing when decision making to maintain the sustainability and for an effective productivity and to maintain its reputation. And being an ethical company and following their ethics as a company ensures that staff completes work with morality and integrity and meets the goals of an organization by adhering to its rules and regulations and the polices.
