Business

Some Common Unethical Business Practices People Should Know

Ethics can be defined as going beyond what is legal or doing whatever is right, even when no one notices. In contrary to that Unethical business considered as an action that falls outside what is termed as morally right for an industry, business or even an individual. Here, on this page, we would learn about some common unethical business practices which must be reported a person performing the task like Tai Lopez instead of overlooking.

 

Tai Lopez
Tai Lopez

Bid-rigging During Acquisition

 

Bid-rigging is an anti-ambitious activity. Under a specified competition act, bid-rigging is considered to be a serious criminal offense. It happens when businesses rig out the outcomes of other competitive acquirement processes.

A bid-rigging scheme might cause various economic damage to the government because it’s the public who ultimately acts as taxpayers or consumers thus bears all the cost associated with the bidding process.

Agreement or hook-up between the competitors

 

Business can harm the consumers throughout the process of the supply chain when they put on a contract to:

  • Fixed Prices
  • Designate customers or markets
  • Limited supply or production

All the competitors together make an agreement to raise the price of the product which is supplied to the government. Even they configure a minimum price that they would not sell the product below the amount. Businesses often reduce or eliminate discounts and as a result, the commodities have been sold out at their at the inflated prices.

Bribery To Dominate Business Decision

 

These illegal business practices include offering, demanding or receiving any valuables including money to dominate an official business decision. A kickback can be considered as one of the best examples of such activity in which someone offers money or other valuables as an intention of getting favorable treatment.

Conflict of interest

 

It’s a situation when a government employee has an undisclosed interest in the transaction which adversely affects their professional identity. These conflicts of interest would later become a corrupt influence and can be determined in the form of:

  • Certifying an unqualified or untrusted company to become a supplier.
  • Allocating the contracts in a non-competitive way.
  • Paying amount more than the exact price.
  • Buying too much quantity of inappropriate items.

Conclusion

Due to the existence of all these unethical business activities, the customer lacks their trust even with a trusted company engaged in performing legitimate business. This leads to the situation of poor work environment for the company which leads to drop off in their productivity.