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Module 3 Unethical Business Practices

The document outlines various unethical business practices including accounting manipulations, overbilling, misleading advertisements, making false claims, poor customer service, use of poor-quality materials, and unethical layoff practices. These actions can lead to legal repercussions, damage to reputation, and ultimately lower sales for companies. It highlights the negative impact of prioritizing profit over ethical standards in business operations.

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Michelle Doctor
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2 views16 pages

Module 3 Unethical Business Practices

The document outlines various unethical business practices including accounting manipulations, overbilling, misleading advertisements, making false claims, poor customer service, use of poor-quality materials, and unethical layoff practices. These actions can lead to legal repercussions, damage to reputation, and ultimately lower sales for companies. It highlights the negative impact of prioritizing profit over ethical standards in business operations.

Uploaded by

Michelle Doctor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UNETHICAL

BUSINESS
PRACTICES
ACCOUNTING
MANIPULATIONS
•Accounting books can be manipulated
and financial statements can be
manipulated to show a more favorable
result of accounting transactions.
ACCOUNTING
MANIPULATIONS
•A company may hide its true status and
present a better picture of its financial
statements to investors.
OVER BILLING
Some services providers are guilty of charging more than the
actual price for the service given.
OVER
BILLING
•Overpricing for a service
destroys the reputation of a
service provider and may
result in lower sales for the
company.
MISLEADING
ADVERTISEMENT
•
There are advertisement which mislead
consumers by making promises which
the product cannot really deliver.
MISLEADING
ADVERTISEMENT
•
They may temporarily increase sales but
once the consumers figure out the truth
they end up dissatisfied, thus resulting in
lower sales.
MISLEADING
ADVERTISEMENT
•
Dermatological services with
exaggerated advertisements end up with
lawsuits because of excessive claims on
their beauty products and services.
MAKING
FALSE
CLAIMS
Some managers tend to take credit
for something like charity works
which they are not a part of.
MAKING
FALSE
CLAIMS •
Some vendors, suppliers or sellers
use dangerous chemicals to
increase the quality of the product
being manufactured or perhaps cut
short the production to reduce
expenses.
CUSTOMER SERVICE FAILURES

Poor customer service is also


considered unethical. Failure to
replace a damaged product or not
being able to serve a warranty is
considered unethical.
CUSTOMER SERVICE FAILURES

Failure to refund a
complaining customer is
also another example, as
well as being rude.
POOR-QUALITY MATERIALS
In manufacturing processes,
poor products may be the
result of low-quality
materials used to lower the
total cost of production.
POOR-QUALITY MATERIALS

Victims of these poor or


faulty products may file
legal action against
dishonest manufacturers.
LAYOFF AND HIGH EXECUTIVE
COMPENSATION
Some companies are guilty
of laying off workers
allegedly because they are
losing profit, when in
reality,
LAYOFF AND HIGH EXECUTIVE
COMPENSATION
they are just giving higher
salaries to their executives.
Whatever are saved from
laying off workers are given
to senior management perks.

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