Ethical situation in business Essay Example | Topics and Well Written Essays - 1250 words

Ethical situation in business - Essay Example panies need to emphasize on ethics in order to satisfy their employee pool and use existing human resource pool in to fillip growth (Trevino & Nelson, 2010, p. 194). Code of ethics helps the company to build sustainable image in front of their stakeholders. Unethical business practice creates negative image in front of shareholders and government of the country. In the extreme case of unethical behaviors like fraud, bankruptcy, misrepresentation of company asset or any kind of forgery government takes legal action against the company. Legal action against the company not only hurts market reputation of the company but negatively affects shareholder’s interest. In the given situation companies of USA has designed ethical assistance lines for employees to report ethical concern or ask question about companies business pattern in order to create a transparent ethical environment in the organization. The following diagram will show propensity of employee to report unethical business practice of the company (Ferrell, Fraedrich, & Ferrell, 2009, p. 222). The company will only accept projects for which they have the requisite knowledge, expertise and experience to accomplish task successfully. The company will engage only those employees who have the requisite expertise and knowledge to complete the project in accordance to demand of clients. Employees of the company will take care of the confidential client information and must not disclose any of the information in public without taking formal permission from clients. Disclosing client information to their competitor’s is strictly prohibited and employees practicing such unethical transaction will be under legal jurisdiction of Federal Government. Employees and the company will not accept any kind of bribe, remuneration, commission or any kind of fringe benefit from third party connected to clients without taking prior permission from clients. The company will disclose such kind of monetary offer from third