It's difficult not to look at the news and feel a sense of unease when it's revealed that yet another company has faced layoffs or shutdowns because their CEO, COO, or CFO was found to have been abusing their power with unethical behavior. But those types of stories represent just the tip of the iceberg when it comes to the real damage that can be done by unethically-behaving employees, who may be taking actions such as:
Unfortunately, in most cases, the only thing that usually happens to unethical employees is that they get fired. But, as we'll now show you in this article, unethical employees can do much more harm than just hurting your company's bottom line and stock value by destroying your company's reputation for being ethical. After all, if your business is known to be unethical, then customers will rightfully assume that the products and services your company offers are no better than those offered by a competitor. This perception can seriously dent your business's market share and ability to grow in the long run.
But before we explain in detail why unethical business practices can do more harm than good, let's first define what we mean by unethical behavior. As Wikipedia defines it, "ethics is the study of moral principles and standards such as honesty, social justice, equality and fairness." But oftentimes, people may view ethical behavior as something that only applies to other people or situations outside of their work environment. Yet unethical behaviors can actually have a much greater impact on your business than you might imagine.
If you're an entrepreneur and your company just can't seem to get ahead, here's the most important thing you need to know: poor ethics are killing your business. Since people are the company, ethical behavior is integral to good customer service and ultimately brings in new customers. Ultimately, unethical behavior leads to a lack of trust and bad press.
Here is how Unethical Employees Will Kill Your Business:
Large companies are constantly in the public eye and under scrutiny from consumers. If your company appears to be jumping on the unethical bandwagon, the chances are good that consumers will avoid doing business with you. While it's important for the big boys to get ahead by any means necessary, it is not possible for small companies to do likewise.
In today's business climate, every small business is subject to government investigations, lawsuits and fines as a result of a dishonest activity. It can be a significant drain on your company's resources and erode your credibility in the minds of consumers.
And, of course, unethically acting employees will cost you money. Since the economy is in a downturn, finding a new position is more difficult than ever. Losing employees can lead to an increase in insurance costs and an increase in employee benefits since they are now responsible for paying for their own health insurance coverage.
Though it's true that some dishonest operations have been able to survive financially, the chances of doing so are lower than ever. Taking shortcuts or engaging in the unethical activity is far too risky and short-sighted, even for the short term. Companies that have implemented unethical business practices are unlikely to survive in the consumer's memory as time passes.
Great employees deserve to work for a company that has a mission they believe in. Bad-mouthing the competition may seem like an easy way to bring in new clients, but it's disrespectful and poor leadership practice. When employees don't feel respected, they leave. And good employees who stay will be looking for other places to work.
Ongoing stress, increased tension and a host of other health issues are the outcome of dishonest behavior in the workplace.
If you consistently engage in dishonest practices, you can be on the receiving end of fines and lawsuits that can cost enormous money. More likely, dishonest businesses will end up in bankruptcy, and your retirement account will be lost.
Consumers are unlikely to do business with companies that have already lost their integrity since there's potential for dishonest behavior to continue.
In the end, dishonest behavior is bad for you personally as well. Paying your own legal fees will eat away at your income; dealing with lawsuits can become a headache, and the stress of being in charge of unethical behavior can wear on you.
Taking shortcuts is not a great way to run a business, but it can become really tempting when you're under pressure. Ultimately, your product or service needs to stand on its own merits. If your product or service is inferior in some way, you should find ways to either improve it or drop it altogether. It's impossible to build your business on a foundation of sand since consumers will catch on eventually.
In fact, it will almost certainly hurt your personal business and lead to a host of other problems. It's time to take a hard look at the way you operate your business and put an end to unethical behavior. Like any good business, it's important to be ethical in your behavior and do the things outlined above.
If your competitors are in unethical business practices, your customers will know about it. And since every penny counts when people have to pay for a product or service, consumers will choose to buy from companies that are ethical and reliable.
A little ethics goes a long way towards being a successful entrepreneur and building a great company that stands the test of time. If your business practices are not going to help you build a profitable and sustainable company, it's time to put an end to unethical behavior.
Whether they purposefully sabotage your efforts or step out of line, it doesn't take long before employees' constant stream of unprofessional acts starts to affect your business. But staying silent about these issues only worsens the problem — how can you expect to turn a profit when you ignore a massive issue in front of your face? That's why it's time to speak up and clean house with these 11 sure-fire ways to stop unethical employees from derailing your business.
Even though you're running a small business, you can still get in people's personal space. You always want to do what you can to encourage your employees. However, when your employees and customers annoy or harass you, it's best to take a stand.
Companies that allow unethical behavior among their employees often hurt their business and end up getting in serious trouble since they promote the wrong kind of images to the public eye instead of more respectable ones.
Unethical training doesn't just happen at the corporate level — it also happens from the ground up when managers don't take the time to teach their employees proper business ethics and brush off inappropriate behavior as "office politics." To ensure that your team is always on the up and up, it's important to teach them about ethics and hold regular training that emphasizes what is and isn't ethical in the workplace.
Suppose you find out that your employees have been committing unethical acts. In that case, it's best to conduct internal investigations to find out what's really going on instead of being swayed by rumors and gossip. As long as you do your research, you should be able to come up with some concrete results and solutions for the issue.
Take time at the beginning of your business journey to set ethical standards for yourself (and make them public so that everyone knows about them). It will help you to avoid an unethical situation by ensuring that your employees abide by the regulations set by your business instead of going against them.
While you can't force your employees to stop unethical behaviors, it's also important to talk about the issue with them and ask them whether they're aware of their company's ethical standards. It is the best way to make sure that your employees are not unaware of the company's expectations in the future.
It can be hard to change a person's behaviors. However, you can make it easier by widening your business' scope and reach instead of trying to isolate your company from society. For example, while skimming through social media will probably not result in finding an unethical act by an employee, if you're actively engaging with other businesses and influencers, that chance increases significantly. And since social media is the wave of the future, you should think about ways you can use it to your advantage.
Once you've established what your business' ethical standards are, make sure that you strictly enforce them and don't allow any room for unethical behaviors at all. There's no excuse for unethical behavior, and if people can't live up to your ethical standards, then they're not a good fit for your business in the first place.
If you're not happy with the way that a certain employee is going through the business, it's best to take a step back and see whether their actions are worth the money. Because if their actions are not worth the money, there's no reason for you to keep them in your company.
You can't afford to keep an unethical employee on your team and help them to continue damaging your business. You must be able to forgive yourself for mistakes you make and learn from them instead of continuing the cycle of unethical behavior. It is why it's important that you have a clear understanding of how much damage each type of unethical act can cause and what kind of penalty you'd like to charge someone.
There's no shame in hiring a lawyer if you find yourself in an unethical situation. It is because you're the one who will be responsible for your actions, and as such, it's important that you have someone who can protect you and help you avoid legal mishaps.
While social media can be an incredibly useful tool to promote your business, it can also be a major source of ethical violations. However, it's important to note that social media doesn't just target your business — it can also end up hurting larger industries. Don't try to make ethical decisions in the dark without a support system by hiring an expert who has no bias and will give unbiased opinions about how best to go about handling your unethical situations.
If you find yourself in such a position, consider the steps above and see how they can help you to solve your unethical behavior problems.
Even if you think that a small unethical act won't affect your business at first, it's easy to fall down an ethical slope. One wrong move can end up hurting more than just you — which is why it's important to take action as soon as possible.
Do you feel like you are struggling with putting "strategy" and "business growth concepts" in place that make a difference? Doing it all is overwhelming! Let’s have a honest discussion about your business and see if the Power of 10 can help you. Click “HERE” to have a great conversation with our team today.
Written and Published By The Strategic Advisor Board Team
C. 2017-2021 Strategic Advisor Board / M&C All Rights Reserved
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