Legal Issue
In the United States, federal and state governments establish rules and procedures for how a business should be run. Businesses that fail to follow federal and state guidelines often face large fines and other penalties. Larger companies sometimes decide that breaking laws and paying the fines involves lower costs than the financial gain made from breaking those laws. However, consistently breaking laws can lead to costly legal battles that outweigh the initial gain. Additionally, executives at companies who break laws and engage in unethical behavior that leads to harmful practices for employees and customers could find themselves facing
Preventing Unethical Behavior
Often a lack of ethics appears because of poor planning and faults elsewhere in the business. To prevent unethical behavior, set realistic goals for employees. If employees are expected to meet unreachable quotas and goals, they could engage in unethical behavior to attempt to reach those goals. Consistently monitor employee performance. Employees left unmonitored sometimes slack in their performance and take credit for completing tasks that were left uncompleted. Properly train all employees. Untrained employees often cut corners and make excuses for not completing work up to the standards the business requires.