The Dark Side of Corporate Conduct: Unethical Practices That Companies Engage In
Unethical behavior by corporations has been a subject of intense debate and scrutiny. Companies often engage in practices that are legally permissible but morally questionable, leaving consumers, employees, and the wider community questioning the true nature of corporate governance. Here, we delve into several prevalent unethical practices that companies engage in.
Lobbying and Backroom Deals: The Art of Persuasion
One of the most common ways in which companies advance their interests is through the use of lobbyists. These professionals go to various state governors, senators, and other policymakers, working out deals that may provide a break in taxes or the removal of laws that could hinder the company’s growth. The ethical implications of such actions are significant, as these deals can often be curtained behind closed doors, leaving the public and other stakeholders in the dark.
The Deceptive Art of Bait and Switch
A classic example of unethical business practices is the bait and switch technique. This involves advertising a sale on a particular product but sale only a limited amount. After the initial inventory is depleted, subsequent customers are often talked into purchasing a different, sometimes pricier, product. This tactic blurs the lines between advertising truth and deception, leaving consumers feeling cheated.
Incompetent Staff and Morale Strain
Another form of unethical behavior is the deliberate hiring of incompetent staff. In some cases, companies may intentionally recruit candidates who lack the necessary skills and knowledge, leading to a highly strained work environment. These individuals often become bottlenecks, causing unnecessary stress for their more competent colleagues. This practice not only undermines productivity but also demoralizes the workforce.
Manipulation of Pension Plans
The manipulation of pension plans is another unethical practice that has cost many individuals their financial security. Companies may replace defined benefit pension plans with pay-as-you-go “cash balance” schemes, often with significantly lower value. For instance, at IBM, it was revealed that the company had laughed at how easy it was to perpetuate this practice. A determined lawsuit exposed these unethical practices, as was documented during the discovery process and depositions.
Shoddy Products and Deceptive Warranty Periods
A significant issue in corporate ethics is the sale of defective products. I’ve encountered cases where products literally fell apart the day the warranty expired, indicating that the manufacturer knew the product was defective and deliberately sold it knowing it would barely last the warranty period. General Electric is one such company that has faced scrutiny for their declining product quality.
Conclusion: Ethical vs. Legal Fiduciary Duties
While paying more taxes than legally required is often seen as an unethical act, companies must balance their fiduciary duties to shareholders with ethical considerations. This tension can lead to common forms of unethical conduct, such as the scenarios mentioned above. As consumers and employees, it is crucial to remain vigilant and informed about the ethical practices of the companies we support and work for.