What Are the Ethical Issues in Business

What Are the Ethical Issues in Business?


When it comes to Ethical issues in business, it’s all about balancing financial interests with moral obligations to society.

It’s not just that Business Ethics have issues and challenges. Individuals can also find themselves in these situations. People around them may question their moral viewpoint.

Even though there are laws in place to keep people accountable, unethical behavior still finds its way into the workplace. In some cases, entire organizations make decisions that run against ethical principles.

According to the 2021 ECI’s Global Business Ethical Survey, 8 out of every 10 employees say they’ve experienced some form of misconduct at work. In the U.S., 79% of employees said they’d experienced retaliation or unethical behavior, and 61% worldwide.

These figures highlight the need for robust ethical guidelines and proactive measures to ensure workplaces remain ethical.

In this blog, we will explore the complexities of Business Ethics Current Events, and examples.

The agenda for this article Ethical Issues in Business:

What do we mean by ethical issues in business today?

Well, Ethics is a broad term, but at its heart, it’s about doing the right thing in business.

That means building a company on values like integrity and trust while also playing by the rules.

Ethical business also covers other important stuff, like being empathetic, embracing diversity, and accepting differences.

It’s about whether your actions are in line with the values of your organization.

So, when we discuss ethical issues in business, we are entering the world of doing business the right way.

What are the top Ethical Issues in Business?

To effectively address ethical issues in your business, you must first have a thorough understanding of what those issues are. Knowing how to recognize and, more significantly, prevent ethical issues before they emerge will let you focus on company development and success rather than correction.

We have put together a list of ethical issues in business that you might have to face.

      • Sexual Harassment Issues in Business
      • Discrimination Issues in the Workplace
      • Personal behavior on social media outside of work hours
      • Health & Safety Issues at Workplace
      • Environmental Responsibility
      • Businesses misrepresent their earnings and expenses
      • Nepotism and favoritism
      • Abuse of Leadership Issues

1.)  Sexual Harassment Issues in Business:

Sexual harassment is one of the most serious ethical issues faced by businesses. Harassment includes verbal abuse, sexual harassment, bullying, and racial discrimination. It can come from any source, including employees, clients, and customers.

Sexual harassment creates a hostile work environment and can lead employees to leave the company early. It has long-term psychological and financial effects on employees and can affect a person’s entire career path.

According to the U.S. Equal Employment Opportunity Commission (EEOC), In 2022 alone, there were over 6,200 reported cases of sexual harassment.


The #MeToo Movement began in 2016 with allegations of sexual harassment and abuse at Fox News. Numerous women on the network reported being subjected to sexual harassment by their superiors, resulting in termination, demotion, or outright denial of employment.

Fox News was later found to have settled several sexual harassment lawsuits, some of which occurred years before the #MeToo movement began. The network was more interested in hiding the settlements than in addressing the underlying issues.

How to manage sexual harassment in the workplace?

It’s no secret that sexual harassment is a serious ethical issue in the business world and if you don’t know why, you need to read the #MeToo movement.

The best way to prevent sexual harassment is to take preventative measures. If sexual harassment does occur in your company, acknowledge the allegation, thoroughly investigate the case, respond appropriately, and discipline if necessary.

 2.)  Discrimination Issues in the Workplace:

Discrimination is unethical and often illegal, and it’s an issue that employees face daily. Age, gender, race and religion, and disability are just a few of the factors that can lead to discrimination in the workplace.

According to a recent survey conducted by Glassdoor on behalf of The Harris Poll, 76% of American employees and job seekers consider a diverse workforce an important factor in evaluating potential employers and their job offers.

The importance of having a diverse workforce is especially important among different groups.

In the United States, 80% of Black/Hispanic job seekers and employees and 79% of LGBTQ people consider a diverse workforce a key factor in their decision-making process.

The UCLA Williams Institute survey found that there are more than 8 million lesbian, gay, bisexual, and transgender (LGBT) workers in the United States, and 45.5% say they’ve experienced unfair treatment in their workplace.

How to manage discrimination in the workplace:

Ensure that all employees are aware of the organization’s behavioral requirements before employment and that they are encouraged to report discrimination.

Create a diverse workforce by hiring individuals from a variety of backgrounds. This reduces the risk of discrimination and brings in a variety of perspectives and knowledge.

Establish a fair and open compensation system, and keep monitoring the under or over-compensation of employees.

3.)  Personal behavior on social media outside of work hours:

Make sure your company has a social media policy, that outlines what’s allowed and what’s not on your employees’ personal social media accounts outside of work hours.

It can be difficult to know the ethical implications of firing or disciplining your employees for their off-site social media behavior.

How to manage your employees’ social media use effectively:

      • Create a clear policy: Make sure your social media policy is clear and concise. Make sure it outlines what you expect your employees to do online, why it is important, and what are the consequences if they violate it.
      • Use simple language: Make sure the language in your policy is easy to understand.
      • Monitor employee behavior: Keep track of your employees’ phone and laptop usage regularly. Work with your IT department or a specialist to put in place a strong cybersecurity plan that protects against data breaches.
      • Address misconduct promptly: In the event, that an employee engages in social media misconduct and you’re forced to terminate the employee’s employment, take this as an opportunity to remind the social media policy’s importance to other employees.

4.) Health & Safety Issues in the Workplace:

According to the International Labour Organization (ILO) reports nearly 2.3 million workers die each year due to accidents or illnesses in the workplace.

Health and safety problems are caused by inadequate fall protection, insufficient weight and resistance regulation, inadequate equipment, and uncontrolled hazards. Important necessities such as electrical and wiring procedures are often neglected.

The United States Bureau of Labor (BLS) Statistics reported that in 2021, 2.6 million private sector employers reported nonfatal workplace injury and illness.

The Injuries, Illnesses, and Fatalities (IIF) program of the U.S. Bureau of Labor Statistics, reported that in 2021 there were 5.190 fatal work injuries in the United States.

How to manage health & safety issues in business?

      • Regularly inspect your workplace to spot and address potential risks before they become a major issue.
      • Provide comprehensive training for your staff so they can make informed decisions and follow safety protocols with confidence.
      • Encourage healthy living by stocking the kitchen with healthy snacks and beverages. This simple gesture can improve the overall health and well-being of your workforce.
      • Encourage a supportive culture by making it clear that help is available for anyone.
      • Recognize and reward hard work.
      • Create opportunities for professional growth.
      • Hold regular meetings, with your employees to understand their needs and concerns.

5.) Environmental Responsibility:

Every business owner is responsible for the environmental impact of their company. This includes things like air pollution, water pollution, and endangered species.

Fortunately, the government has passed laws to address most ethical issues related to the environment in the business sector. These laws include the Clean Air Act, Clean Water Act, Endangered Species Act, Resource Conservation and Recovery, and others.

What can your business do about environmental responsibility?

Here are a few approaches your company can take. Some may cost more, while others can be done right away.

Top 5 High-Tech Ways You Can Green Your Business:

      • Use renewable energy
      • Go paper-free to reduce waste
      • Work remotely to reduce emissions
      • Track energy consumption with the IoT
      • Consider doing away with your storefront

6.) Business Misrepresent its earnings and expenses:

In the world of business ethics, a troubling issue arises when companies manipulate their financial numbers. While numbers are typically considered objective, unethical actions by accountants and companies can distort the truth.

Deceiving shareholders and anyone with a vested interest in a company’s financial well-being is not only ethically wrong but also a serious violation of legal standards.


The Enron scandal is one of the most notorious ethical issues in business. The company went bankrupt in 2001 and this case became famous as The Fall of a Wall Street Darling. The stock price of Enron went from a high of $90.75 to a low of $0.26 when the company filed for bankruptcy.

Enron deceived regulators by deceiving them with fraudulent holdings and accounting practices. The company concealed its Debt from regulators.

How to avoid unethical cooking in the account books?

To prevent unethical cooking of the books, it is essential to inspect the accounts regularly. If any suspicious activity or theft is discovered, it is necessary to either terminate the employee or report the incident to the relevant law enforcement authorities.

7.) Nepotism and favoritism:

Nepotism is when a company hires someone just because they are related to someone in the company.

Favoritism is when a manager gives preferential treatment to one employee over another for personal reasons.

Hiring family members or friends may have its benefits, but it raises ethical issues in business because it puts personal relationships above competence.

Not only Nepotism and favoritism are unethical, but it also harms an organization’s morale.

Many employees work hard and put in long hours in the hopes of being promoted and rewarded based on merit rather than personal relationships.

These practices can lead to an unhealthy work environment, which harms the organization’s success and harmony.

How to avoid Nepotism and favoritism in your business?

This could be viewed negatively by your current employees if the individual is not qualified for the position.

Therefore, be extra careful when bringing family members or friends into your business. Well said, “You can’t be a boss and a friend simultaneously”.

8.)  Abuse of Leadership Issues:

When it comes to business ethics, one of the biggest problems we face is the abuse of leadership authority. When people in leadership positions abuse their power, whether in their interactions with employees or in their administrative roles, it’s called abuse of power.

But abuse of power isn’t limited to personal interactions. It can also extend to falsifying important reports, such as sales, expenses, or payroll documents. It can also involve accepting gifts from customers or vendors, which is against the organization’s policies.

When leaders abuse their power, not only does it compromise the integrity of their leadership, but it also erodes trust within the company. This can have serious consequences.

How to manage the abuse of Leadership?

Ensure that your company manual clearly outlines what’s acceptable and what’s not. Define the consequences of abuse of power. Provide leadership training so that administrators can effectively lead and manage their teams. Finally, take action when necessary to stop harmful behavior.

Bottom Line: Be and do your best

We hope this article has been useful to you in understanding the current ethical issues in business, the causes of these problems, and how to address them.

Preventing ethical problems in business begins with top management.

By providing written policies and procedures that are both acknowledged and followed, you can ensure transparency and effective ethical business practices. By following the steps outlined in this post, you will not only protect your company’s reputation but also hold your employees accountable for their behavior.

      • Communicate and enforce a strong code of ethics in all decision-making processes.
      • Be aware of harassment and discrimination laws in your area.
      • Stay up to date on compliance rules that affect your industry.
      • Review your financial statements regularly.
      • Work with accountants to ensure transparency and integrity in your financial statements.

Note: This article is intended to raise awareness of ethical issues in business and should not be interpreted as legal advice for making business decisions.

I hope you liked this blog.

Don’t forget to share it with your loved ones on your favorite social media platforms.

We are addicted to advertising so please turn off the AD BLOCKER.

Join us in this journey of enlightenment and spiritual success.

Recent Articles


Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox

Choose Language