Faabire Somalia, Ethical And Unethical Practices In HR, Marketing, And Finance.

Here are some examples of Ethical and Unethical Practices in HR…

Professional Responsibility

Like many other kinds of business people, human resources professionals must contribute to their organization with ethical integrity. Human resources professionals must also comply with the law, make ethical decisions, posit. 

Conflicts of Interest

There are many different kinds of conflicts of interest, affecting almost all types of businesses, not only those on Wall Street. Favoritism, cronyism and nepotism are actually common if not actively discouraged by business professionals. Usually, producing an employee handbook can help to establish policies on some of these issues. Also, human resources employees should refrain from using bias themselves.

Accepting Payoffs

If a human resources employee accepts payment from job seekers in exchange for preferential treatment in the hiring process, this represents ethical misconduct

Discrimination in Hiring

A human resources employee who discriminates against an otherwise qualified employment candidate on the basis of race, sex, gender or religion is behaving in an unethical manner. This can be especially damaging to you as a small business owner, as claims of discrimination in hiring can be costly to defend. Additionally, claims of bias in hiring can harm the reputation of your business, leading to the potential for lost business and revenue.

Hiring Friends and Family

Human resources managers should understand that their responsibility should be focused on recruiting and hiring qualified candidates rather than seeking out job opportunities for people with whom they have personal relationships. This can be damaging in a small business environment where pre-existing relationships are not typically well-kept secrets.

ETHICAL AND UNETHICAL PRACTICES IN MARKETING

Examples:

Honesty – Be forthright in dealings and offer value and integrity.

Responsibility – Accept consequences of marketing practices and serve the needs of customers of all types, while being good stewards of the environment.

Fairness – Balance buyer needs and seller interest fairly, and avoid manipulation in all forms while protecting the information of the consumers.

Respect – Acknowledge basic human dignity of all the people involved through efforts to communicate, understand and meet needs and appreciate contributions of others.

Transparency – Create a spirit of openness in the practice of marketing through communication, constructive criticism, action, and disclosure.

Unethical: Making false claims

In a desperate bid to compel potential and existing customers to buy their products or services, some marketers use false statements, exaggerated benefits, or make unverifiable claims about their offers.

Unethical:  Mislead or confuse potential buyers

This is another common unethical marketing practice. A typical example is when a food processing company claims that its products are sugar-free or calorie-free when indeed they contain sugar or calories

Unethical: Bad-mouthing rival products

Emphasizing the dark sides of your rival’s products in a bid to turn potential customers towards your own products is another common but unethical marketing practice.

The Client’s Interests First

Financial Services is a wide sector and the ‘client’ may take many shapes and forms. At the highest level, in the case of a country’s central bank, the ‘client’ would be at one step removed the ‘Government’, and ultimately the population of the country

 A Commitment to Excellence

An ethical approach to financial services would see professionals and the organizations that they represent constantly striving to do the best job they possibly can under the circumstances. This means avoiding a mentality of doing ‘enough’, and stopping there.

 Ethics Prioritized Over Client Instruction

Of course, unethical behavior in Financial Services can also be provoked by clients themselves. Whether it is through strong encouragement to help them minimize tax within the gray areas of international tax law, or any other activity that could be interpreted as giving them an unfair advantage, it is far from uncommon for financial services professionals to be put under pressure by their clients to conduct activities they may not consider ethical.

 Unethical: Rise the holding period for product considered long term.

 Currently, a capital asset needs to be held for one year before the product on its sale can be preferentially taxed at the long-term capital gains rates of 0%, 15%, or 20% rather than at the short-term gains rates of 10%-39.6%. No      informed individual considers a year to be a long term for an investment, but the nearly two-thirds saving in taxes has strongly motivated corporate executives to be paid in stock rather than cash.

Unethical:  Reduce tax subsidies for home ownership.

 Increasing home ownership has been a worthwhile objective for many years, yet wealthy individuals receive subsidies in the form of tax deductibility for second homes only they can afford. Further, a cap should be placed on the tax deductibility of mortgages now subsidizing the ownership of residences of extremely high value.