COMMON

UNETHICAL
PRACTICES OF
BUSINESS
ESTABLISHMENTS
Chapter 7
 Common unethical practices of
business establishments
I. Misrepresentation
A. Direct Misrepresentation B. Indirect Misrepresentation
• Deceptive Packaging • Caveat Emptor
• Misbranding or Mislabeling • Deliberate Withholding of Information
• False or Misleading Advertising • Passive deception
• Adulteration
• Weight understatement or Short weighing
• Measurement understatement or Short
measurement
• Quantity understatement or short numbering

II. Over-Persuasion
 Unethical Practices of
Corporate Management
Board of Directors
1. Plain Graft
2. Interlocking Directorship
3. Insider Trading
4. Negligence of Duty
 Unethical Practices of
Corporate Management
Executive Officers and Lower Level Managers
1. Claiming a vacation trip to be a business trip
2. Having employees do work unrelated to the business
3. Loose or ineffective controls
4. Unfair labor practices
5. Making false claims about losses to free themselves from paying the compensation and
benefits provided by law
6. Making employees sign documents showing that they are receiving fully what they are
entitled to under the law when in fact they are only receiving a fraction of what they are
supposed to get
7. Sexual Harassment
 Unethical Practices of
Corporate Management
Employees
1. Conflicts of Interest
2. Dishonesty
ETHICAL
DILEMMA

Chapter 8
 Ethical Dilemma
is a situation a person faces in which decision must be made about the
appropriate behavior
Six-step approach in resolving ethical dilemmas:
1. Obtain the relevant facts.
2. Identify the ethical issues from the facts.
3. Determine who is affected by the outcome of the dilemma and how each person or group is
affected.
4. Identify the alternatives available to the person who must resolve the dilemma.
5. Identify the likely consequences of each alternative.
6. Decide the appropriate action.
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