Results of unethical company /employees behavior due to no code of conduct

Any company may have to suffer massive financial losses, employee injuries and environmental damage due to unethical or illegal behavior either by the company or by its employees if it does not promote a strong code of conduct.

The employees are the main position holders that uphold integrity by bringing unethical behavior and bad practices into light sooner or later. Since they are inside the company they have access to all kinds of company information and can either protect this information or can disclose or sell it to outside parties.

In order to curb this behavior many state laws have been promoted and the most common of all is the Whistle Blowing Activity. All such employees are protected under this act by the state law who disclose any such unethical or illegal activity that is being followed in the organization.

No code of conduct can easily be stopped in case whistle blowing practice is in place. Some of them are:

  • Forging of documents: Wherein a document that is presented by the employee to the employer is fake or altered.
  • Incorrect reporting: Where there are either cases of underreporting or misleading reporting that are followed in the organization.
  • Conceal wrong practices: In cases where either unethical or illegal activities are kept undercover and the company’s brand image is at stake.
  • In case a company does believe in no code of conduct practice, it is a likely possibility that it will run into losses from five perspectives:
  • Finance: This is the main department of any company that will be hit the most. Employees would start submitting wrong reimbursements or bills, sales men would start over reporting of sales figures that might have a direct impact on the stock exchange market.
  • Employees Health & Safety: Employees might just start claiming more on hospitalization as compared to what they are eligible for. Low precautions will be taken by the company to support its employees. A quick example to quote would be: Presence of a security guard in the cab during the night shifts for female employees.
  • Quality of output: Due to no code of conduct the company and its employees will start neglecting qualitative output and as a result all the products that will enter in to the market will have some or the other harm on the customer.
  • The most important perspective is the perspective from the environment and society. Issues related to land, pollution and water. No code of conduct from the company would mean to indulge into unethical and illegal environmental practices that will damage the environment. Example of the same would be: disposing of chemicals in to the local water bodies.
  • Workplace ethics: This issues it the most triggering of all. A practice of no code of conduct would spoil the right atmosphere in the company. There will be no team work, no harmony, no respect, no common goal and every employee will try to step on the other to make way for his/her career path.

Thus it is important that incase any company wants to remain away from this catastrophic damage it must never promote ‘no code of conduct’ practice. A good company code of conduct, ethical code of conduct and employee code of conduct and its compliance and encouragement of whistle blowing concepts is a must for a healthy company and its employees.

Submit a Comment

Your email address will not be published. Required fields are marked *