Top 1: Discuss with example, how unethical business behaviour could damage the reputation of a company. [12]
Posted: Mon Mar 25, 2024 9:30 am
Topical Q1: Discuss with example, how unethical business behaviour could damage the reputation of a company. [12]
Topical Past Papers - 9707/11/ON 2015/ Q7
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Solution:
Point 1:
[KN] Unethical business behaviour can damage the reputation of a company by eroding trust and credibility among stakeholders, including customers, employees, investors, and the broader community.
[AN+APP] For example, if a company is found to be engaging in deceptive marketing practices, such as making false claims about the effectiveness or safety of its products, customers may lose faith in the company's integrity and choose to take their business elsewhere.
[AN+] Moreover, unethical behaviour, such as exploiting workers or violating labour laws, can lead to negative publicity, public outcry, and damage to the company's brand image, especially in today's era of heightened social consciousness and activism.
[AN+] Additionally, unethical conduct can undermine employee morale and loyalty, leading to higher turnover rates, decreased productivity, and difficulties attracting top talent, further tarnishing the company's reputation in the eyes of job seekers and industry peers.
Point 2:
[KN] Another way unethical business behaviour can damage a company's reputation is through legal and regulatory repercussions, which can result in fines, penalties, lawsuits, and even criminal charges.
[AN+APP] For instance, if a company is found guilty of fraud, bribery, or corruption, it not only faces financial liabilities but also risks being blacklisted by government agencies, industry associations, and business partners.
[AN+] Moreover, unethical conduct can lead to investigations by regulatory authorities, audits by external agencies, and scrutiny from the media, exposing the company to public scrutiny and condemnation.
[AN+] Additionally, unethical behaviour can have long-term consequences for the company's ability to secure contracts, licenses, permits, and partnerships, hindering its growth prospects and damaging its relationships with key stakeholders.
Point 3:
[However] Some companies may prioritize short-term gains over long-term reputation, believing that unethical behaviour is justified if it leads to increased profits or market share.
[AN+] However, this mindset can backfire in the long run, as the costs of reputational damage and loss of trust far outweigh any temporary benefits gained from unethical practices.
[AN+] Moreover, in today's interconnected world where information spreads rapidly through social media and digital channels, it's increasingly challenging for companies to conceal unethical behaviour or escape accountability for their actions.
[EVAL]
[SOL] One solution to mitigate the risks of unethical behaviour damaging a company's reputation is to prioritize ethical leadership, integrity, and corporate responsibility throughout all levels of the organization.
Another solution could involve implementing robust compliance programs, ethical codes of conduct, and whistle-blower mechanisms to detect and address unethical behaviour proactively before it escalates and causes irreparable harm to the company's reputation.
[External Factors] Factors to consider before making a final decision include:
1. Industry norms and standards: Assessing industry-specific ethical standards, benchmarks, and best practices can help companies align their behaviour with industry expectations and avoid reputational risks associated with non-compliance or unethical conduct.
2. Stakeholder perceptions: Understanding the perspectives and expectations of key stakeholders, such as customers, employees, investors, and regulators, is essential for companies to build and maintain trust, credibility, and goodwill.
3. Legal and regulatory environment: Compliance with laws, regulations, and ethical guidelines is crucial for companies to avoid legal liabilities, reputational damage, and sanctions imposed by regulatory authorities or industry watchdogs.
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Disclaimer: This is the possible answer with some extra information to make you understand better, the wordings must be managed according to the time allocated for each 12 marker.
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Topical Past Papers - 9707/11/ON 2015/ Q7
-----
Solution:
Point 1:
[KN] Unethical business behaviour can damage the reputation of a company by eroding trust and credibility among stakeholders, including customers, employees, investors, and the broader community.
[AN+APP] For example, if a company is found to be engaging in deceptive marketing practices, such as making false claims about the effectiveness or safety of its products, customers may lose faith in the company's integrity and choose to take their business elsewhere.
[AN+] Moreover, unethical behaviour, such as exploiting workers or violating labour laws, can lead to negative publicity, public outcry, and damage to the company's brand image, especially in today's era of heightened social consciousness and activism.
[AN+] Additionally, unethical conduct can undermine employee morale and loyalty, leading to higher turnover rates, decreased productivity, and difficulties attracting top talent, further tarnishing the company's reputation in the eyes of job seekers and industry peers.
Point 2:
[KN] Another way unethical business behaviour can damage a company's reputation is through legal and regulatory repercussions, which can result in fines, penalties, lawsuits, and even criminal charges.
[AN+APP] For instance, if a company is found guilty of fraud, bribery, or corruption, it not only faces financial liabilities but also risks being blacklisted by government agencies, industry associations, and business partners.
[AN+] Moreover, unethical conduct can lead to investigations by regulatory authorities, audits by external agencies, and scrutiny from the media, exposing the company to public scrutiny and condemnation.
[AN+] Additionally, unethical behaviour can have long-term consequences for the company's ability to secure contracts, licenses, permits, and partnerships, hindering its growth prospects and damaging its relationships with key stakeholders.
Point 3:
[However] Some companies may prioritize short-term gains over long-term reputation, believing that unethical behaviour is justified if it leads to increased profits or market share.
[AN+] However, this mindset can backfire in the long run, as the costs of reputational damage and loss of trust far outweigh any temporary benefits gained from unethical practices.
[AN+] Moreover, in today's interconnected world where information spreads rapidly through social media and digital channels, it's increasingly challenging for companies to conceal unethical behaviour or escape accountability for their actions.
[EVAL]
[SOL] One solution to mitigate the risks of unethical behaviour damaging a company's reputation is to prioritize ethical leadership, integrity, and corporate responsibility throughout all levels of the organization.
Another solution could involve implementing robust compliance programs, ethical codes of conduct, and whistle-blower mechanisms to detect and address unethical behaviour proactively before it escalates and causes irreparable harm to the company's reputation.
[External Factors] Factors to consider before making a final decision include:
1. Industry norms and standards: Assessing industry-specific ethical standards, benchmarks, and best practices can help companies align their behaviour with industry expectations and avoid reputational risks associated with non-compliance or unethical conduct.
2. Stakeholder perceptions: Understanding the perspectives and expectations of key stakeholders, such as customers, employees, investors, and regulators, is essential for companies to build and maintain trust, credibility, and goodwill.
3. Legal and regulatory environment: Compliance with laws, regulations, and ethical guidelines is crucial for companies to avoid legal liabilities, reputational damage, and sanctions imposed by regulatory authorities or industry watchdogs.
=======================
Disclaimer: This is the possible answer with some extra information to make you understand better, the wordings must be managed according to the time allocated for each 12 marker.
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