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Do you know if your company is playing fair when it comes to employee pay, benefits, working conditions?

There are many examples of companies that violate ethical codes. This includes unfair business practices, including failing to compensate employees fairly. Businesses are always looking for ways to cut costs while also increasing profits. As such, it’s essential that companies ensure their conduct complies with both corporate laws and ethical standards. If a company does not comply with legal requirements or applicable ethical codes, this can result in penalties and even lawsuits against the company.

Here are 5 of the most common business ethics violations and methods for avoiding them:

1) Paying Low Wages or No Overtime – In some cases, employers aren’t paying their workers enough. In other cases, they’re paying poverty-level salaries. No worker should be paid unfairly so companies must follow wage laws and pay employees adequate wages instead of bypassing those rules (which could mean simply avoiding getting caught). Ensure that all wages and salary payments meet federal, state, and local minimum wage laws.

Some employers routinely expect workers to put in long hours for little pay. These individuals usually aren’t guaranteed overtime pay which means they often work at least 50 hours a week but only get compensated for 40 of them. This seems unfair since most people would much rather spend time earning cash than working endless hours for free. Instead, companies should compensate employees accordingly for the hard work they put into generating revenue while minimizing the amount of labor required.

It’s important to note that every single state has certain wage laws when it comes to overtime. For example, California law requires any person employed over 40 hours per week receive at least 1 hour of additional compensation for each hour worked past 40 hours. However, some businesses choose to pay employees less than required by law because following labor law would increase operating costs. Thus, some employers fail to pay overtime whether due to ignorance of the law or out of an intentional

2) Failing To Treat Your Employees With Respect And Fairness – Not only is it illegal but also against common courtesy. When you’re recruiting and interviewing candidates, make sure you have great experience and hire someone who fits the position. While you’re doing this…you need to treat your current employees with respect and fairness too. You never know what kind of bad day an employee might encounter and having compassion will go a long way.

An employer may treat one employee differently from another based on things like race, age, sex, or religion. That’s illegal and unethical. The US Equal Employment Opportunity Commission enforces these laws under Title VII of the Civil Rights Act. Make sure your HR representative or hiring manager is following up with new hires as well as existing ones. You want everyone to be treated equally at work!

Employees can sometimes be downright silent when violations occur. If no one tells the person who committed the offense that he/she did something wrong, it’s unlikely that anyone will actually follow through with disciplinary action. But don’t worry. There are ways around this issue if you have enough evidence. Sometimes, management will try to fire the guilty party quickly instead of giving him/her a chance to defend themselves first.

3) Favoritism For Friends And Family – Many companies will hire people who are friends or family members. While there isn’t an explicit rule that stops businesses from hiring people who are related, it’s still considered unethical because it means the individual gets special treatment and might land better job opportunities than someone else.

It’s best to keep an open mind on candidates rather than leaning towards close ties because then, the person receiving preferential treatment has more power over your decision process. Don’t let your personal relationships impact the way you do business; it’s just not right.

4) Failing To Pay Bills – Another common violation within business ethics is an employer leaving the bills unpaid. Maybe the company doesn’t have any money coming in and needs to lay off staff or take out loans to cover payroll and expenses. Either way, it’s unacceptable and leaves workers without paychecks. Your bills need to get paid by the end of every month otherwise you’ll start racking up late fees and interest charges.

When billing customers, make sure the payment goes smoothly on time. Otherwise, potential clients can become hesitant to use your products or services. If necessary, contact your vendor and negotiate a faster turnaround on payments.

5) Unethical Behavior With Customers/Clients – Businesses should always adhere to ethical standards when dealing with their own customers. They don’t want to appear greedy, dishonest, or immoral. A good example: A customer asks if they can return a product or receive a discount because they weren’t satisfied with the service from your business. An honest shop owner would say “Yes.” They could ask for a full refund or exchange depending on how the item was purchased. But, some unscrupulous sellers charge restocking fees and try to trick a returning customer into keeping the item instead. If a business does this, it can lose valuable clients.

Businesses should be trustworthy in their dealings with customers. They shouldn’t tell lies about the services they provide or how much they cost. They should make sure they do everything they have promised. Customers should always check if companies sell them products and services that meet their needs. Finally, businesses should follow up with customers after they’ve made payments and ensure the services the customer expected to receive were met.

It’s important to stay ethical when running a business or working for a business. People don’t like to think of themselves as being untrustworthy. We all try our hardest to avoid hurting others’ feelings. However, doing so can cause great harm to both ourselves and others. Adhering to these basic business ethics rules and avoiding those common violations will help you run a successful business.

ethics