6 Ethical Issues In Business And What To Do About Them

Most entrepreneurs and sole proprietors think that just “profit / high income” is required to achieve a prosperous business; sadly, individuals having this business perspective usually run into business issues. 

The core focus of this piece is one of the many business issues entrepreneurs regularly face ethical Issues. 


We will precisely put you through the purpose of ethical Values in business, the causes of ethical issues, all the challenges enterprises face in maintaining ethical principles, and what to do about them.  

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All You Need To Know About Ethical Issues

You’re eager to know what we mean by “Ethical Issues in Business.”

In most firms, enterprises, and businesses, there are established laws and principles made precisely known to employees, holding them accountable for behavioral misconduct, being just mere warnings. These alone will never be enough to put an end to unethical behaviors.


Business ethics enhances the laws and principles by implementing moral policies/standards/procedures to govern the behavior of customers, employees, and other corporate entities. Adherence to business ethics positively impacts the company by rendering it trustworthy to customers.  

Read More: Why Do Employers Prefer Employees With Good Work Ethics?

The Purpose Of Implementing Business Ethics

To Boost Moral Awareness In Businesses

  • Entrepreneurs should not focus just on operational activities and business income.
  • They should also keep a close eye on the behavioral conduct of their employees.
  • By enacting business ethics and policies, employees know the moral standards required to run the business.

Positive Impact On The Company’s Name

Implementing business ethics in the company confirms the behavioral patterns of all employees in the entity, attracting more customers to patronize because a product with a good image sells itself.

To Increase Profit/Income

Enacting and adhering to business ethics benefits both the company and its employees. Customers will be more drawn to excellent customer service, thereby maximizing the chances of getting more profits. 

6 Examples Of Ethical Issues In Business

Success in your business entails profit-making and ensuring that your staff adheres to business ethics.


Here are some ethical issues that are likely to arise if your business principles are not adhered to; 

1. Discrimination

Discrimination in the workplace is one of the main ethical issues affecting the world of business currently. 

Discrimination is unethical, and it refers to a situation where an employee is treated unfavourably for reasons like gender status, age, ethnicity, religion, origin, disabilities, and race, ethnicity. 

There are legal ways to protect such employees from this prejudicial treatment. In addition, Individuals who discriminate often get relieved from their job. 

2. Harassment

Harassment is a common issue employees face in their offices regularly. It is only referred to as an ethical issue if harassment from anyone in the company or from customers is reported to an employer or HR, and they take no action to stop it. 

Harassment takes a negative toll on the emotional health of the victims and can cause them to quit their job, and it is very unethical and psychologically draining. 

3. Health And Safety

In most cases, companies overlook the health and safety of their employees and attempt to cut corners to escape taking responsibility for the well-being of their employees. 

Some companies also take shortcuts to reduce costs and perform tasks faster, disregarding the well-being and safety of their employees. 

This business ethical issue can cause injuries and other health risks to employees. Employers should take note of this and be more kind to their employees. 

4. Abuse Of Leadership Authority

Abuse of leadership authority can come in various forms like bullying, manipulation, and predation (Inappropriate sexual advancements). 

Abuse of power manifests as favoritism, humiliation, intimidation, and inappropriate sexual abuse.

5. Nepotism And Favoritism

Nepotism in the workplace is preferential treatment given to family members, distant Relatives, and friends. 

Favoritism is partiality, favoring only employees who suit your interest for various reasons. 

These acts are unfair, and they cause uneasiness in the office and create a toxic work environment. 

Employees who are victims of this unethical behavior usually have to go out of their way to please employers and supervisors, and sometimes all the efforts will be in vain. 

6. Corporate Espionage

This is a term that’s used when employees abuse their company’s data, steal the company’s property or even supply the company’s competition with information that can be used for blackmails. 

There are various reasons why an employee will resort to such an unethical act, such as Cash payments, the employee has been compromised, or the employee has been promised a secure position in the competition’s business firm. In situations like these, implementing nondisclosure agreements may help as it will discourage such ethical issues. 

Read More: Answers To “What Does Integrity Mean To You?”

Causes Of Ethical Issues In The Workplace

Lack Of Strict Guidelines And Not Setting Priorities Straight

In some firms, employees are faced with tasks regularly without concise policies and guidelines providing clear directions on how to do the task. 

In such situations, they are likely to approach the task in a manner that will hurt the company or organization’s image, leading to ethical violations.

Personal Beliefs, Morals, And Values

While recruiting staff members for their companies, employers fail to regard religious belief differences in all the individuals, they go ahead to employ the individuals regardless of how it will affect the company, and this oversight breeds problems and issues in the workplace. 

It’s important to communicate on time to individuals during the employment process and ask questions about their beliefs and moral values.

If you come across an individual who has a certain personal belief you are not comfortable with, relieve the person at once because conflicting religious beliefs and values always result in ethical violations in the office.

What To Do About Ethical Issues In Your Business 

Employees Should Respect Coworkers

In the world of business ethics, the first extremely important code of conduct is showing respect to other coworkers. Treating them professionally breeds a very safe and uncompromised working environment. Teach your employees to always treat their coworkers how they would love to be treated.

Implement Nondisclosure Agreement Signatures in the Workplace

Individuals would always avoid violating work ethics when there are penalties involved, and ensure that your staff signs a nondisclosure agreement before you present them with sensitive tasks to be worked on.

Set Guidelines

Business owners have to tell their employees how a certain task should be done and communicate expectations precisely and clearly to all staff members to ensure accurate results. 

By setting guidelines, an employer avoids certain mistakes to the company’s detriment.

Create Company Policies

On the first day of work, employees should be provided with company policies, and a privacy and social media policy should be included.

Privacy policies inform employees about the information they can access and information on inaccessible data.

Social policies are expectations on how staff members should behave on their social media platforms and communicate clearly on the social media policy draft to ensure that its purpose is understood.

Define Relationships In The Workplace

Employees should be made to understand that setting boundaries in the relationships they cultivate among each other helps to avoid a toxic and uncomfortable workspace.

Disregarding the need to set boundaries may pose adverse reactions from third parties, and when it goes too far, it may be challenging to manage ethical problems effectively.

Set A Dress Code

Employees may disrespect an organization by dressing unethically to work, thereby putting wrong impressions on customers and coworkers. 

Enacting a dress code will maintain moral ethics in the workplace, and the company’s dress code has to give an impression of professionalism and morality.  


What Are The Ethical Issues, And What Do You Do?

Ethical issues in the workplace are defined as instances where a moral conflict arises and must be resolved within the organization. Unethical accounting, harassment, health and safety, technology, privacy, social media, and discrimination are the five primary types of ethical issues in the workplace.

What Are The 12 Ethical Issues?

There are about 12 ethical principles: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, compliance with the law, transparency, and environmental concerns.

What Are Three Ways In Which Ethical Issues Are Solved?

In ethical decision-making, three basic principles can be used to solve a problem. These three principles are intuitionism, moral idealism, and utilitarianism.

What Are The Four Ethical Issues In Business Explain?

Ethical issues in business can be divided into four areas: justice, rights, honesty, and the exercise of corporate power. Business organizations have conflicting responsibilities to employees, shareholders, customers, and the public.

What Is An Example Of An Ethical Issue In Business?

Racial discrimination, sexual harassment, and wage inequality—are all costly ethical issues that employers and employees across the country face daily.

What Are Ethical Issues In The Business Essay?

An ethical issue is illegal, unethical, or irresponsible behavior toward an employer that threatens the employer’s business. Ethical issues arise when workers, including managers and subordinates, decide on alternative courses of action.

How Do Ethical Issues Affect Business Activities?

Being ethical will often result in higher costs for the business, and this is because ethically sourced supplies are often more expensive to purchase. Some businesses argue that lowering sales and profit margins would make them less competitive.

What Are The 7 Business Ethics?

The discipline includes corporate responsibility, personal responsibility, social responsibility, loyalty, honesty, respect, trustworthiness, and technology ethics.

What Are The Three 3 Types Of Ethical Issues?

The three main types of ethics are deontological, teleological, and virtue-based.

What Is An Ethical Issue With Examples?

Some examples of ethical dilemmas include: Taking credit for the work of others. Offer the client an inferior product for your profit. Using inside knowledge for your gain.


Ultimately, business is made successful by people, and every entity should establish its moral values by living by them realistically.

Exhibiting ethical behavior in business firms creates a safe business environment by strengthening relationships, encouraging trust and Creativity, and generating stronger customer relationships. 

Every business should demonstrate, at its core, moral behaviors to have a successful, doubt-free business environment that will attract great & talented employees, satisfied customers, and profits.

Implementing ethical Values like confidentiality, integrity, honesty, unity, respect, and responsibility deters the possibility of Ethical Issues In Business. In addition, by implementing these values, you avoid looking for solutions on What To Do About Ethical Issues In Your Business because you are at no risk of experiencing them.


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